When looking for the best personal loan in Australia, it’s crucial to weigh up interest rates, fees, and loan terms. Here’s what you need to know:
- Interest Rates: Rates vary widely based on whether the loan is secured (backed by an asset) or unsecured. April 2026 rates range from 5.95% p.a. for secured loans to 35.99% p.a. for unsecured loans with lower credit scores.
- Comparison Rates: These include interest rates plus most fees, offering a clearer picture of the loan’s total cost.
- Loan Terms: Longer terms lower monthly repayments but increase the total interest paid. For example, a $15,000 loan at 12% p.a. accrues $1,946 in interest over 2 years but $7,242 over 7 years.
- Fees: Some lenders charge upfront or ongoing fees, while others, like NOW Finance, offer no-fee options.
Here’s a quick look at five options:
- Liberty Secured Loan: Fixed rate of 5.67% p.a., $310 establishment fee, no ongoing fees.
- Harmoney Loan: Unsecured loans start at 5.76% p.a., with fees ranging from $0 to $575.
- NOW Finance: Fixed rates from 5.95% p.a., no fees at all.
- Unity Bank Green Loan: Eco-friendly projects funded at 5.55%–6.05% p.a., no fees.
- One Hour Loans: Fast approvals, but higher costs, with small loans at a 4% monthly fee and medium loans at 48% APR.
Quick Comparison
| Lender | Interest Rate | Fees | Loan Type | Loan Amounts | Approval Speed |
|---|---|---|---|---|---|
| Liberty | 5.67% p.a. (secured) | $310 establishment fee | Secured | $2,000–$75,000 | 24 hours |
| Harmoney | 5.76%–24.03% p.a. | $0–$575 establishment fee | Unsecured | $2,000–$100,000 | 5 minutes |
| NOW Finance | 5.95%–26.95% p.a. | No fees | Unsecured | $5,000–$50,000 | 24–48 hours |
| Unity Bank | 5.55%–6.05% p.a. | No fees | Green projects | $1,000–$50,000 | Varies |
| One Hour Loans | 4% monthly (small loans) | 20% establishment fee (small loans) | Unsecured | $300–$50,000 | 1 hour |
Choosing the right loan depends on your financial goals, credit score, and how quickly you need the funds. For low rates, secured loans like Liberty’s are ideal. If you want no fees, NOW Finance stands out. For fast cash, One Hour Loans offers speed but at a higher cost.
Personal Loan Comparison Australia 2026: Rates, Fees and Terms
How to compare personal loans? | Canstar
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1. Liberty Secured Personal Loan
Liberty Financial offers a secured personal loan with a fixed rate of 5.67% p.a., which is well below the March 2026 average of 9.53%. Since this is a secured loan, you’ll need to provide an asset as collateral – this is what allows for the lower interest rate compared to unsecured loans.
Interest Rates
The fixed rate of 5.67% p.a. ensures your repayments stay the same throughout the loan term, no matter how the market fluctuates. For comparison, the average fixed rate across the market sits at 8.92%, while variable rates average 10.87%. This stability can make it easier to plan your finances.
Fees
Liberty keeps fees straightforward. There’s a $310 establishment fee upfront. Beyond that, there are no ongoing monthly or annual fees, and you won’t be charged for paying off the loan early. This flexibility could save you money if you decide to clear the loan ahead of schedule.
Loan Terms and Amounts
With Liberty, you can borrow between $2,000 and $75,000 for terms ranging from one to seven years. If you’re financing a motor vehicle or undertaking home improvements, the maximum loan amount increases to $100,000. Repayments can be made weekly, fortnightly, or monthly, and once approved, funds are usually accessible within 24 hours.
2. Harmoney Personal Loan
Harmoney provides unsecured loans starting at 5.76% p.a., significantly below Australia’s average rate of 13.87%. The lender employs a risk-based pricing model, meaning your interest rate is tailored to your credit profile.
Interest Rates
Unsecured loan rates range from 5.76% to 24.03% p.a., with fixed rates. Borrowers with excellent credit can access the lowest comparison rate of 5.76% p.a.. For secured loans, rates are even lower, starting at 5.66% p.a..
Fees
The establishment fee varies between $0 and $575. Harmoney doesn’t charge monthly account fees, and there are no penalties for early loan repayments.
Loan Terms and Amounts
You can borrow anywhere from $2,000 to $100,000, with repayment terms of 3, 5, or 7 years. Flexible repayment schedules include weekly, fortnightly, or monthly options. The application process is fully online and AI-driven, allowing funds to be disbursed within 5 minutes of approval. Harmoney has assisted over 90,000 customers and boasts an impressive 4.8/5 star rating from 20,842 reviews.
Next, we’ll look at another strong contender in this space.
3. NOW Finance No Fee Unsecured Personal Loan
NOW Finance provides an unsecured personal loan with fixed interest rates ranging from 5.95% to 26.95% p.a., and no additional fees. This means the comparison rate is identical to the interest rate, ensuring clarity about the total cost of the loan.
Interest Rates
The loan uses risk-based pricing, which adjusts rates based on the borrower’s credit profile. Customers with excellent credit may qualify for rates as low as 5.95% p.a., considerably lower than Australia’s average interest rate of 13.87% p.a.. In recognition of its offerings, NOW Finance was awarded Finder’s "Best fixed loan" in March 2026 and achieved a 9.6/10 Finder Score.
Fees
NOW Finance adopts a no-fee policy, eliminating establishment fees, account-keeping charges, and early repayment penalties. Over a five-year loan term, skipping the usual $5 monthly fee saves borrowers around $300. Additionally, there are no late payment or dishonour fees, making this a cost-effective choice for borrowers looking to minimise expenses.
Loan Terms and Amounts
Borrowers can access amounts between $5,000 and $50,000, with repayment terms ranging from 18 months to 7 years. The application process is quick and easy, taking just two minutes, and checking your personalised rate won’t impact your credit score. Once approved, funds are typically disbursed within 24 to 48 hours, and repayments can be scheduled weekly or fortnightly.
Next, we’ll take a closer look at a lender offering loans with a focus on environmental solutions.
4. Unity Bank Green Upgrades Loan
Unity Bank’s Green Upgrades Loan is designed for homeowners investing in eco-friendly improvements and renewable energy solutions. With interest rates between 5.55% and 6.05% p.a., it provides a competitive option for those aiming to make their homes more sustainable while reducing their carbon footprint. This loan stands out as an eco-conscious alternative amidst traditional personal loan choices.
Interest Rates
The starting rate of 5.55% p.a. is well below the average rate of 9.79% p.a. offered to borrowers with top-tier credit scores. For environmentally conscious borrowers, these rates highlight Unity Bank’s focus on supporting sustainable initiatives. The comparison rate aligns with the interest rate, ranging from 5.55% to 6.05% p.a..
Fees
This loan comes with no establishment or monthly fees. By comparison, many lenders charge a $5 monthly fee, which can add up to $300 over a five-year period. However, borrowers should confirm whether late payment or early repayment fees might apply. These fee-free terms make this loan particularly appealing for financing eco-upgrades.
Loan Amounts
Borrowers can secure amounts from $1,000 to $50,000 under this loan. The funds are specifically intended for environmentally friendly projects, such as installing low-carbon heating systems, improving insulation, setting up small-scale renewable energy solutions, or implementing climate resilience measures.
Up next, we’ll look at a loan option that prioritises fast approvals for borrowers needing quick access to funds.
5. One Hour Loans
After exploring various loan types, let’s dive into a service built around speed and convenience: One Hour Loans. This lender focuses on providing quick access to funds, offering amounts ranging from $300 to $50,000, with approvals and disbursements completed within 60 minutes during business hours. It’s an option designed for those urgent moments when timing is everything.
Interest Rates
The interest rates for One Hour Loans vary depending on the loan amount:
- Small loans ($300–$2,000): A monthly interest rate of 4%.
- Medium loans ($2,100–$4,900): An annual percentage rate (APR) of 48%, with a comparison rate of 67.41%.
- Large loans ($5,000–$50,000): An APR of 21.24%, with a comparison rate of 48%.
Fees
The fee structure is straightforward and depends on the loan size:
- Small loans: A 20% establishment fee.
- Medium loans: A $400 establishment fee.
- Large loans: No establishment fee.
All fees and charges are disclosed upfront, ensuring transparency with no hidden costs.
Loan Terms
Repayment terms are tailored to the loan type:
- Small loans: A fixed 12-month repayment period.
- Medium and large loans: Flexible terms ranging from 13 to 24 months.
Repayments can be set to weekly, fortnightly, or monthly schedules, collected via direct debit. If you’re able to repay early, the lender adjusts interest and monthly fees to match the payout date – without any penalties.
Advantages and Disadvantages
Here’s a clear look at the upsides and downsides of each lender, based on the comparisons above.
Secured loans, like those offered by Liberty, provide lower interest rates by requiring collateral. On the other hand, unsecured lenders such as Harmoney and NOW Finance skip the need for collateral but charge higher rates to account for the increased risk.
NOW Finance stands out for its straightforward, no-fee structure. It offers a 6.75% p.a. interest rate that matches its comparison rate, ensuring no unexpected charges. Harmoney, however, promotes a lower starting rate of 5.76% p.a. for borrowers with excellent credit. But when fees are factored in, the comparison rate rises to 6.55%. This highlights how fees can dramatically impact the actual cost of a loan.
For those prioritising speed, loans with rapid approval often come with steeper costs. One Hour Loans, for instance, offers quick access to funds but at a premium price. Small loans carry a 4% monthly fee, while medium loans have a 48% annual percentage rate (APR). This translates to a comparison rate of 67.41%, making them costlier than traditional loans. As Richard Whitten, Senior Money Editor at Finder, explains:
"Some payday lenders also offer 1-hour turnarounds but these loans come with risks including higher interest rates and fees".
Unity Bank’s Green Upgrades Loan offers reduced rates for eco-friendly projects, but borrowers must meet strict eligibility requirements. These loans provide a unique opportunity for those pursuing sustainable upgrades. Additionally, variable-rate loans often allow extra repayments and early exits without penalties. Fixed-rate loans, however, may charge break costs if repaid early.
Borrowers with strong credit scores benefit from the most competitive rates, while those with lower scores face significantly higher costs. If your credit improves during the loan term, you might be able to renegotiate a better rate or refinance your loan.
Conclusion
Choosing the right personal loan comes down to finding the perfect balance between rates, fees, and repayment terms that suit your financial situation. For those with assets, Liberty’s secured loan might offer the lowest rates. Meanwhile, Harmoney appeals to borrowers with excellent credit, offering unsecured rates starting at 5.76% p.a., with comparison rates as low as 6.55%. These options highlight how different lenders cater to varying borrower needs.
Transparency is another critical factor. NOW Finance stands out by aligning its interest rate with its comparison rate, ensuring no hidden fees. For those considering eco-friendly home improvements, Unity Bank’s Green Upgrades Loan provides a tailored option, though its eligibility criteria can be strict. On the other hand, borrowers in urgent need of funds may turn to One Hour Loans, which delivers cash within 60 minutes of approval. However, this speed comes at a cost, with small loans incurring a 4% monthly fee and medium loans carrying a 48% APR (67.41% comparison rate).
Your credit profile plays a significant role in determining the rates you’ll be offered. Additionally, deciding between variable and fixed-rate loans depends on your repayment goals. Variable-rate loans offer flexibility for early repayments without penalties, making them a good choice if you plan to pay off your loan early. Fixed-rate loans, on the other hand, provide certainty in repayments but may include break fees for early repayment. Ultimately, the key to smart borrowing lies in aligning your loan choice with your financial goals and repayment strategy.
FAQs
What’s the difference between an interest rate and a comparison rate?
The interest rate (% p.a.) represents the yearly percentage charged on the principal amount, essentially highlighting the basic cost of borrowing. On the other hand, the comparison rate (% p.a.) factors in the interest rate along with most associated fees, offering a more transparent view of the loan’s overall annual cost. This makes it easier to compare loans and grasp their actual expense.
How do secured and unsecured personal loans affect the rate I’ll get?
Secured personal loans often come with lower interest rates since they are tied to collateral, which reduces the lender’s risk. On the other hand, unsecured loans, which don’t require any collateral, carry a higher risk for lenders and therefore usually have higher interest rates. Opting for a secured loan can help you save on interest, but you’ll need to pledge an asset as security. Meanwhile, unsecured loans offer greater flexibility but come with the trade-off of higher costs.
How can I choose a loan term that balances repayments and total interest?
Choosing the right loan term is all about finding the sweet spot between what you can comfortably pay each month and how much you’ll spend on interest over time. A shorter loan term typically comes with higher monthly repayments but saves you money on interest in the long run. On the other hand, a longer term lowers your monthly repayments but increases the total interest you’ll pay.
To figure out what works best for your situation, try using a loan calculator. This tool lets you compare different term lengths and see how they impact both your repayments and overall costs. The goal is to choose a term that keeps your monthly payments within your budget while also reducing the total amount you’ll pay over the life of the loan.
