Loans can be a very helpful financial tool, but it can be difficult to know where to start. There are a lot of shady providers out there offering unfavourable terms, high interest rates, and poor customer service. The good news is that Australia has a number of fantastic loan providers if you know where to look.
Here are five great personal loan providers currently available in Australia.
People’s Choice Credit Union
People’s Choice Credit Union offers a number of great loan products, with personal loans starting at an interest rate of 7.99% p.a. and auto loans starting at just 4.65% p.a. The specific interest rate you qualify for will vary depending on your risk profile. Their loans have no monthly account fees and they are able to offer loan terms of up to 10 years, with a fixed interest rate for the first 5 years. It’s possible to apply for a loan online, by phone, or in a local People’s Choice Credit Union branch.¹
Harmoney is a large and well-received personal loan provider that has issued over $1 billion in loans across Australasia. They offer loans between $2,000 and $50,000 with interest rates ranging between 6.99% and 28.69% p.a. It usually only takes 24 hours or less to receive your loan after signing the agreement. Harmoney does charge an establishment fee of $275-$575 depending on the size of the loan, but there are no monthly fees, no fees for early repayments and interest rates are fixed for the entire duration of the loan.²
Bendigo Bank provides a number of great loans with interest rates ranging from 6.79%-12.79% p.a. A nice benefit of getting a loan from Bendigo Bank is that if you use their loan to make a green purchase, such as an eco friendly car, they will reward you with a lower interest rate. Their loans are available with terms between 1 and 7 years. It’s important to note that they do have a monthly service fee of $5 per month, an application fee of $150, and an early repayment fee of $20.³ Their application process is done online and a decision is generally made within 48 hours.⁴
CUA offers personal loans for cars, debt consolidation, home renovations, holidays, and education. Interest rates depend on both the type of loan required as well as your individual profile. None of their loans have any monthly fees, and you can make extra repayments on the loan without any charge or penalty. You can choose to pay back CUA loans on a weekly, fortnightly, or monthly basis and all loans can be applied for via a simple online application.⁵
Wisr is a newer lending company that is aiming to provide a better experience for their customers. They offer loans from $5,000 to $50,000 with interest rates from 7.95% to 19.45% p.a. over a 3 or 5 year time period.⁶ They do have an establishment fee for new loans of $595 however they have no early repayment fee and no monthly or annual service fee. To qualify for a loan with Wisr you must be an Australian resident of at least 18 years old with an income of over $30,000 per year and no poor financial record.⁷
Finding The Best Personal Loan
Finding the right personal loan can be easily accomplished with a bit of research. Although these providers are a great start, you’ll still want to compare things for yourself to see what suits your personal needs best. A great way to get started with finding a personal loan is to perform an online search. This will reveal many of the loan providers currently on the market and allow you to compare the different terms and interest rates so you can find a great loan for your specific scenario.