Personal loan rates in Australia 2026
Personal loan rates have remained elevated following the RBA's rate hiking cycle, though competition between lenders has kept rates from rising as much as the cash rate. Unsecured personal loans currently range from approximately 6% to 20% p.a. Secured loans — where the loan is backed by an asset like a vehicle — start lower, around 5–7%. Your credit score, income stability, and existing debt all influence the rate you're offered. Lenders use risk-based pricing, meaning two people applying for the same loan may be offered very different rates.
| Loan type | Typical rate range |
|---|---|
| Secured (car/asset) | 5% – 9% p.a. |
| Unsecured (excellent credit) | 7% – 10% p.a. |
| Unsecured (average credit) | 10% – 15% p.a. |
| Unsecured (limited history) | 15% – 20% p.a. |
Fixed vs variable personal loans
Fixed-rate personal loans lock in your interest rate and repayment amount for the life of the loan — typically 1–7 years. This is the most common choice for Australians taking personal loans, as it provides certainty over the repayment schedule. Variable-rate personal loans offer more flexibility (make extra repayments, redraw funds) and may benefit from rate cuts, but your repayment can change if the lender adjusts their rates. For most personal loan purposes, the predictability of a fixed rate is the better fit.
Personal loan vs credit card
A personal loan is almost always cheaper than carrying a balance on a standard credit card. Where a credit card might charge 18–20% p.a., a personal loan for the same debt could be 8–12% — potentially saving thousands in interest over the repayment period. Personal loans also have a fixed end date, meaning you're guaranteed to be debt-free by a set date. Debt consolidation — rolling multiple high-rate debts into a single personal loan at a lower rate — is one of the most financially sound uses of a personal loan, as long as you don't then re-accumulate debt on the cleared cards.