Unsecured personal loans in Australia

Getting an unsecured personal loan is straight-forward. Apply, get funded, and repay your loan without having to put up an asset.

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Compare unsecured personal loans

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Promoted
10.90%
to 10.90%
interest rate
11.04%
to 11.04%
comparison rate
Exclusive Offer: Save $100 with a reduced application fee of $99, and monthly service fees waived for applications submitted until 28 June 2023.
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Name Product Mobile details underline Fixed Cost Comp. Rate (p.a.) Rate Type Application Fee Monthly Fee Monthly Repayment
OurMoneyMarket Personal Loan Fixed, 1 - 7 Years, $2,001 - $75,000
OurMoneyMarket Personal Loan
1 - 7 Years, $2,001 - $75,000
6.57%
to 18.99%
7.19%
to 21.78%
Fixed
1.50% - 6%
min. $250
$0
Citi Personal Loan Plus
Exclusive

Variable, 3 - 5 Years, $2,000 - $55,000
Exclusive
Citi Personal Loan Plus
3 - 5 Years, $2,000 - $55,000
10.90%
to 10.90%
11.04%
to 11.04%
Variable
$99
$0
Exclusive Offer: Save $100 with a reduced application fee of $99, and monthly service fees waived for applications submitted until 28 June 2023.
NOW Finance No Fee Unsecured Personal Loan Fixed, 18 Months - 7 Years, $5,000 - $50,000
Finder Award
NOW Finance No Fee Unsecured Personal Loan
18 Months - 7 Years, $5,000 - $50,000
6.75%
to 21.50%
6.75%
to 21.50%
Fixed
$0
$0
Latitude Variable Rate Personal Loan Variable, 2 - 7 Years, $5,000 - $70,000
Latitude Variable Rate Personal Loan
2 - 7 Years, $5,000 - $70,000
9.49%
to 29.99%
10.37%
to 33.28%
Variable
0% - 5%
$13
Great Southern Bank Unsecured Fixed Rate Personal Loan Fixed, 1 - 7 Years, $5,000 - $75,000
Great Southern Bank Unsecured Fixed Rate Personal Loan
1 - 7 Years, $5,000 - $75,000
6.99%
to 18.49%
7.24%
to 18.76%
Fixed
$175
$0
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What is an unsecured personal loan?

With an unsecured personal loan you're borrowing money without putting up an asset (like a car) as security.

If you can't repay the loan there's nothing your lender can repossess and sell to recover your debt. Unsecured personal loans have slightly higher interest rates to compensate for the higher risk the lender is taking. They are typically easier to get than secured loans and rates can still be competitive.

With an unsecured loan you can borrow anywhere between $2,001 and $100,000 and terms range from 1 to 7 years.

The pros and cons of unsecured personal loans

Pros
  • Fast access to credit. Lenders don't have to assess any asset when you apply for an unsecured loan, so the approval process is faster.
  • Flexible loan options. These loans have flexible loan terms, loan amounts and often let you make extra repayments easily.
  • Rates can be quite competitive if you shop around. Rates are higher with unsecured loans but you can still get a good deal if you compare widely and have a decent credit score.
  • No assets at risk. You don't have to put a car or other asset at risk if you can't repay the loan.
Cons
  • Higher interest rates. While still competitive, the lowest personal loan rates in Australia are always going to be secured loans.
  • If you can't repay the loan you're still in trouble. Just because you haven't used your car as security doesn't mean failure to repay the loan won't hurt you. A default will harm your credit score and your lender can still pursue you for the debt in court.

What can I use an unsecured personal loan for?

Unsecured personal loans aren't tied to specific purposes in the way a home loan or a secured car loan is. They're quite flexible, and most lenders don't impose any restrictions on how you use the funds.

You can use an unsecured personal loan to:

Are there any risks with small or large unsecured loans?

Any money you borrow comes with risk if you can't repay it. The best way to minimise any risks that come a loan is to:

  1. Borrow only what you can afford to repay.
  2. Approaching a reputable, licensed lender (all lenders on Finder are licensed and reputable)
  3. Factor in the cost of all fees and the loan's interest rate.

The risks of taking out a large personal loan

Borrowing a lot of money is riskier than a small amount, generally speaking. A 5% interest on a small loan won't cost you as much in interest charges as the same rate on a much bigger loan.
Here's a simple example.

Loan ALoan B
Interest rate12%12%
Loan term3 years3 years
Loan amount$3,000$8,000
Total loan cost (loan plus interest)$3,588$9,566

These loans are otherwise identical, but the higher loan amount ends up costing the borrower more than $1,500 in interest. Whereas the smaller loan is just $588 of interest.

The risks of taking out a small personal loan

You might think that getting a very small unsecured personal loan is less risky. But if you want to borrow less than $2,000 you probably can't get a personal loan.

Borrowing under $2,000 means you're probably looking at a payday loan. These loans don't have interest charges but come with hefty fees. The price of a small, fast unsecured loan can actually be much higher.

Do unsecured personal loans affect your credit score?

Applying for any loan impacts your credit score temporarily. That's why you should only apply for one product at a time and try to avoid getting your application rejected.

Aside from the initial impact of the application, taking out an unsecured personal loan won't necessarily hurt your credit score. If you make regular repayments and never miss one this will probably benefit your credit score.

But if you have multiple loans at the same time this may hurt your credit score. And debts like credit cards or personal loans can have a bigger impact than something like a home loan.

Button link: Tips to improve your credit score

How to make sure you're getting the right unsecured personal loan

  • Look at the interest rate. A lower interest rate makes the loan cheaper. As at February 2023 the average unsecured personal loan rate (for an excellent credit score) in Finder's database is 10.2% p.a.
  • Factor in the cost of fees. Some lenders charge hefty fees. For smaller loan amounts of a few thousand dollars, even a small ongoing fee can end up costing you more than a lower-fee loan with a higher interest rate. Use a calculator to check the true cost of the loan.
  • Choose your loan term and loan amount carefully. The more you borrow the more expensive the loan is. Longer loan terms mean you end up paying more interest. But shorter loan terms make your monthly repayments higher.
  • Check if the loan allows extra repayments. Most loans let you make extra repayments or pay off the loan early without charging fees. It's a useful feature. 47% of Australians in Finder's Consumer Sentiment Tracker say it's the most important feature on a personal loan.
  • Make sure you're eligible for the loan. Check you meet all the eligibility criteria before submitting an application. You'll need to be over 18, have proof of your income and personal identification documents at a minimum.

Who offers unsecured personal loans?

Unsecured personal loans are offered both by large, traditional banks such as NAB, and non-bank lenders like OMM or Harmoney. Non-banks are governed by the same regulations as banks, so both are safe and secure options for your borrowing needs.

The key difference between a bank and a non-bank is that non-banks hold a credit licence and not a banking licence. This means that they cannot provide some banking services, such as taking deposits. If you prefer to do all your banking in the same place, you may want to stick to the banks.

Typically, non-banks offer more competitive rates, with lower set-up and ongoing fees. However, they may have fewer loan options compared to traditional banks. Non-banks can also be more flexible and may provide better, personalised service when compared to traditional banks.

Frequently asked questions

More guides on Finder

    Personal Loan Offers

    Important Information*
    Logo for OurMoneyMarket Personal Loan
    OurMoneyMarket Personal Loan

    You'll receive a fixed rate from 6.57% p.a. to 20.99% p.a. based on your risk profile
    A personalised loan from $2,001 to $75,000 that varies based on your credit history and financial situation.

    Logo for ANZ Fixed Rate Personal Loan
    ANZ Fixed Rate Personal Loan

    You'll receive a rate from 6.99% p.a. to 18.49% p.a. with a comparison rate from 7.69% p.a. to 19.09% p.a. if you're approved.
    Apply for up to $50,000 to use for a variety of purposes without needing to add security. Available to self-employed applicants. T&C's apply.

    Logo for NAB Personal Loan Unsecured Fixed
    NAB Personal Loan Unsecured Fixed

    You'll receive a fixed rate between 6.99% p.a. and 19.99% p.a. ( 7.91% p.a. to 20.83% p.a. comparison rate) based on your risk profile
    Borrow from $5,000 to $55,000, with 1 years to 7 years loan terms available. This loan comes with no fees for extra repayments and no early exit fees.

    Logo for NOW Finance No Fee Unsecured Personal Loan
    NOW Finance No Fee Unsecured Personal Loan

    You'll receive a fixed rate between 6.75% p.a. and 20.95% p.a. based on your risk profile
    Apply for loans from $5,000 and get a dedicated loan manager. No security required.

    Ask an Expert

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    42 Responses

      Default Gravatar
      LynneApril 10, 2023

      I have ad many loans. I have a great credit rating. Buf I have rstired and am on the pension
      Am I still eligible for a loan
      Thank you
      Lynne Davis

        Avatarfinder Customer Care
        SarahApril 25, 2023Staff

        Hi Lynne,

        Your eligibility for a loan depends on a number of things, including your income. If you have enough income to support debt repayments, you may be approved.

        Also, it could be worth contacting the National Debt Helpline for some guidance. They offer free debt support and debt restructuring and could help look into your situation and options moving forward. They are open 5 days a week – contact them on 1800 007 007 or visit https://ndh.org.au/

        Hope this helps!

      Default Gravatar
      DennisMarch 15, 2023

      I require a personal loan to pay out trustee for Vesting interest in my property or they will sell leaving me homeless
      The amount required is $13,000
      I was discharged from bankruptcy 15th august last year

        Avatarfinder Customer Care
        SarahApril 6, 2023Staff

        Hi Dennis,

        You can apply for any of the unsecured loans on this page by selecting the green “go to site” button.

        You may also want to look at some options for borrowers who have experienced bad credit in the past, here are some options:
        https://www.finder.com.au/bad-credit-personal-loans

        Best of luck!

      Default Gravatar
      KarenNovember 13, 2018

      I am on a disability pension and want to pay off my credit card and Centrelink loans. Can you advise me of the best way to get a loan for $1000 please

        Avatarfinder Customer Care
        JohnNovember 13, 2018Staff

        Hi Karen,

        Thank you for leaving a comment.

        If you are looking to pay off your credit card balance and Centrelink loan, you may consider applying for a personal loan for debt consolidation. According to our review, Centrelink can be classed as genuine income by some lenders and can be used as income to assess your serviceability for a debt consolidation loan. It’s important to calculate your repayments and find out if your lender accepts your types of income. When you are ready, you may then click on the “Go to site” button and you will be redirected to the lender’s website where you can proceed with the application or get in touch with their representatives for further inquiries you may have.

        Before applying, please ensure that you meet all the eligibility criteria and read through the details of the needed requirements as well as the relevant Product Disclosure Statements/Terms and Conditions when comparing your options before making a decision on whether it is right for you. You can also contact the provider if you have specific questions. Hope this helps!

        Cheers,
        Reggie

      Default Gravatar
      colleenSeptember 10, 2018

      Hi. I need a personal loan of 40k to pay off an existing loan and leave some to purchase a motorcycle. These sites are all just taking into consideration MY circumstances instead of the household income. My husband pays most things and I pay the existing loan and other insurance expenses etc. Who can I contact to get a loan which includes my household combined income?

        Avatarfinder Customer Care
        JoshuaSeptember 12, 2018Staff

        Hi Colleen,

        Thanks for getting in touch with Finder. I hope all is well with you. :)

        I understand you’re looking for a lender that would consider your household income. Indeed, the majority of lenders would only assess your individual income primarily. However, we do have a page that lists lenders who provide personal loans on joint applications.

        On that page, you will see a table that allows you to conveniently compare your options. You can compare according to the loan amount, fees, term payment, and so on. Once you have found the right one for you, click on the “Go to site” green button to learn more or initiate your application.

        I hope this helps. Should you have further questions, please don’t hesitate to reach out again.

        Have a wonderful day!

        Cheers,
        Joshua

      Default Gravatar
      LilianJuly 12, 2018

      am a starter in businesses and and i need loan $ 2500 to enable have the working capital and set up, am citizen of Kenya.. please advise

        Default Gravatar
        JoelJuly 13, 2018

        Hi Lilian,

        Thanks for leaving a question on finder.

        Unfortunately, the lenders featured on our website only caters to residents from the US, Australia, UK, Canada and New Zealand. You will have to check with your local lenders if you are not from those 5 countries I mentioned. Sorry about that.

        Cheers,
        Joel

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