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Low Interest Rate Personal Loans

If your looking for a low interest personal loan make sure you read our summary for tips on how to get one.

Low Interest Rate Personal Loans

Personal loans are great for things like a home renovation, debt consolidation, car loans, cosmetic surgery or a long dreamed of holiday.

What’s even better than a personal loan?

A low interest rate personal loan!

But, how do you get one?

Follow our two-step process and you’ll be well on the way to seeing if you qualify for a low interest rate personal loan.

Step 1: Make sure your credit score is in the best shape possible.

Your credit score will have a major impact on whether you can get a low interest rate personal loan.

A good credit score is a good sign to a lender that you will repay the personal loan.

So, before you start applying for a loan directly to a lender, it’s a good idea to check your credit score. The good news is that its free to check your credit score and we have a really good article called “What is a Credit Score?” that explains what a credit score is and how you can find out yours.

Once you discovered your credit score you should work out if there is anything you can do to improve your credit score. To help you we have an article called “How do I improve my credit score?” that is well worth the read. If you can improve your credit score you’ll significantly improve your chances of getting a low interest personal loan.

If you don’t have time to find out your score, simply apply for a loan with us and we can give you some feedback on the interest rate you can get. Because we have a large panel of lenders, we can quickly check the Australian market for you. We may also be able to give you feedback on ways to improve your credit score and therefore lower the interest rate on your personal loan.

Step 2: Shop around

Don’t just accept the first loan you are offered by a lender!

The Australian lending market is really competitive, so we always encourage people to shop around and look for the best loan for their circumstances.

There are some lenders that offer really cheap interest rates on personal loans and they may save you significant money.

But before you go out an apply for a loan with lots of lenders you need to be aware of two things.

Firstly, applying for too many personal loans can impact your credit rating.

This is because an application direct to a lender will often trigger what’s called a hard credit check.

Hard credit checks are a formal credit inquiry and therefore impact your credit score.

If you apply for a loan with lots of lenders, you run the risk of seriously hurting your credit rating.

Secondly, different lenders have different lending policies.

For example, some lenders insist on a minimum time in your job before they give you a loan, some only lend to people who own a home while other lenders don’t do loans for cosmetic surgery or legal fees.

If you don’t know these lender policies you may get rejected for a loan at a lender and not really understand why. That can be very frustrating. 

That’s why when searching for a low interest personal loan it’s important to use an online loan service. An online loan service can quickly scan the market and find that low interest personal loan for your situation – all without hurting your credit score.

When looking for an online loan service make sure they cover these five points:

  1. They must have at least 20 lenders to choose from. It’s important they provide alternatives for you to choose from so they need a large panel of lenders.
  2. Excellent customer reviews. You want an online loan service that will work in your best interests. Find a broker with lots of 5-star reviews. Read the reviews to get a sense of the business they run.
  3. An easy online process. Digital technology makes applying for a loan fast and hassle free with some online loan services. Make sure they have quick and simple online forms that can be completed in under 10 minutes.
  4. No upfront credit checks. This is really important. Only select an online loan service that does what’s called a ‘soft’ credit check which won’t hurt your credit score.  
  5. A great knowledge of lender policies so they only place you with a lender that suits your situation.

 

At nmoni we have over 35 lenders to choose from which means we have some of the cheapest personal loan rates in Australia.

We are rated 4.9 on Google from 500+ reviews, have a fast and simple digital application form and we don’t do upfront credit checks to protect your credit score.

We also have a deep understanding of lender policies so we can place you with a lender that suits your circumstances and avoid hurting your credit score.

Beware of fees and charges!

The final point we want to make is around something many people don’t consider and that’s the fees and charges associated with a low interest personal loan.

The reason this is important is that you may be lured by some lenders with a really low interest rate.

What you might not know upfront is that there are a lot of fees and charges associated with that low interest personal loan that make the rate effectively not very good.

So, while it’s important to ensure you are getting a great rate, you also need to be mindful of the other costs of the loan.

When assessing which loan is best for you make sure you add up all the interest charges and fees right through the period of the loan. This will give you a much better indication of which loan is better for you.

We can of course help you with this because we lay out all of these fees and charges for our clients so that everything is transparent and there are no nasty hidden surprises. You’ll find it really easy to compare your loan advantages with everything fully disclosed. It’s just one of the advantages of using nmoni.

If you need a low interest rate personal loan simply apply with us and sit back and relax while we do all the work! We’ll look at your credit profile and what you are trying to achieve, scan our large panel of very competitive lenders and find you a personal loan that works for you and saves you serious money.

Here are some key questions we get asked:

What should I look for when comparing personal loans?

  1. Competitive Interest Rates. Obviously the lower the interest rate the better. Compare across many lenders or have someone do it for you (like us!) so you know you are getting a good deal.
  2. Fees and charges. Make sure you understand all the fees and charges associated with the loan including things like application fees, exit fees, set-up fees, monthly fees etc. Its best to add this to the interest charged over the term of the loan so you understand the total cost and how it compares to other lenders offerings.
  3. Extra repayments. If you do end up with some extra cash you may want to pay off that loan early to reduce your overall interest. Make sure you have this ability! We can help ensure you are offered this feature in your loan.
  4. Lender policies. Each lender has different lending policies. For example, some may only lend to people in a job for a certain time, or only to those that own a home. Make sure you understand this to avoid being rejected. A lender may offer low interest personal loans but not to someone with your credit profile. Our deep knowledge of lending policies helps us place you with a lender that could suit your situation.

Are there different types of personal loans?

There are several different types of personal loans:

Secured Personal Loans

A secured personal loan is secured by an asset like a car or a boat. Secured personal loans typically have lower interest rates because they are less risky for the lender. Taking a secured personal loan may also allow you to borrow more money depending on your situation.

One thing to be mindful of is that if you default on your secured personal loan the lender may repossess the asset you put up for security.

Unsecured Personal Loans

This is the opposite of a secured loan in that you don’t have to put up an asset as collateral. Generally these loans have higher interest rates because there is more risk for the lender. The upside is that you don’t run the risk of losing your asset if you default.

Debt Consolidation Loans

Debt consolidation loans are where you take one loan out to pay off your existing debts (multiple loans). If you get the right help, you can sometimes get a lower interest rate and fees than your credit cards or other loans. This means you’ll save money on interest and can hopefully pay off your loan faster. The other really big benefit is that you end up with one single monthly repayment rather than multiple repayments on different loans. This just makes it easier to manage.

Frequently Asked Questions

Follow the two-step process we describe here. Firstly, ensure you understand your credit score and think about how you can improve it. Secondly, shop around using an online loan service like us. Finally, make sure you are aware of all the fees and charges associated with the loan (we fully disclose all lender fees and charges so there are no hidden surprises).

Secured Personal Loans

A secured personal loan is secured by an asset like a car or a boat. Secured personal loans typically have lower interest rates because they are less risky for the lender. Taking a secured personal loan may also allow you to borrow more money depending on your situation.

 

One thing to be mindful of is that if you default on your secured personal loan the lender may repossess the asset you put up for security.

 

Unsecured Personal Loans

This is the opposite of a secured loan in that you don’t have to put up an asset as collateral. Generally these loans have higher interest rates because there is more risk for the lender. The upside is that you don’t run the risk of losing your asset if you default.

 

Debt Consolidation Loans

Debt consolidation loans are where you take one loan out to pay off your existing debts (multiple loans). If you get the right help, you can sometimes get a lower interest rate and fees than your credit cards or other loans. This means you’ll save money on interest and can hopefully pay off your loan faster. The other really big benefit is that you end up with one single monthly repayment rather than multiple repayments on different loans. This just makes it easier to manage.

Lenders focus on risk – that is the risk that you may not repay the loan. Lenders do assess people differently, which is why it’s important to shop around, but there are some general factors that most lenders look at:

 

  1. Your credit history. Lenders review your credit score and credit history to assess your ability to repay the personal loan.
  2. The amount of money you need. Lenders look at how much you want and your ability to repay (or service) the loan (what your income and expenses are). If you have excess funds after your expenses you may represent a lower risk.
  3. The term of the loan. If you need longer to pay off a loan may be a sign you aren’t in a strong financial position.

A personal loan is a sum of money a lender gives you that you repay over an agreed period of time plus interest and other fees and charges.

 

Personal loans generally range from $5,000 - $150,000 and the term of the loan ranges from 1 to 7 years (5 years is pretty common).

Low interest rate personal loans are used for things like buying a car, boat or caravan, traveling, consolidating debt, cosmetic surgery or paying legal fees. Home renovations are another really common reason for people taking a personal loan.

The interest rate on a personal loan is really important but sometimes it doesn’t tell the full story about how competitive a loan really is. That’s because there may be significant fees and charges associated with a loan.

 

To help people compare personal loans the concept of a comparison rate was born. The comparison rate includes the interest rate PLUS all the other costs that come with the loan.

 

For example, lets say a lender is offering an interest rate of 3.99%. Sounds pretty good? The comparison rate for this loan may actually be 6.99% because there are set-up fees and monthly fees that significantly increase the costs associated with the loan. So make sure you take a look at the comparison rate of a personal loan so you get a feeling of the other costs involved.

Before you commit to a personal loan make sure you check to see if there are some important features like:

  1. Extra repayments: You want to be able to pay extra off your loan if you starting earning more money (or win the lottery!). This is an important feature as paying off your loan sooner can save a lot of money in interest.
  2. Redraw: If you get a personal loan with a redraw facility you’ll be able to withdraw the extra money you have paid off. This can save a lot of money because often the interest you’ll save on your loan will be more than the interest you’ll get by leaving your money in a savings account.

Importantly, make sure you understand if a lender charges extra fees for these types of features (or actually using these features).

Personal loans generally range from 1- 7 years with 5 years being common. If you make sure you have the ability to make extra repayments you’ll have the option to pay off your loan much quicker and potentially save a lot of money.

This is where our deep knowledge of lender policies can really help. There are some lenders who will borrow to people who receive Centrelink payments but it can depend on the amount received and what percentage of your total income these Centrelink payments represent. It’s best to apply for a loan through us and we will take a look at your situation to see if we can help.

We have had personal loans approved in under 30 minutes when clients fully complete our fast online application. You can have the funds within 24 hours in some circumstances. Apply here to get started.

Payday loans (short term loans) tend to be for smaller amounts ($100 - $5,000) and taken out for 14 days to 1 year. They often have very high fees (some charge 20% + 4% per month) with significant early exit costs. We really don’t think they are a good idea. Personal loans are generally taken out over 1 – 7 years and loan amounts between $5,000 - $150,000. Personal loans can have fees associated with them but they can vary considerably by lender.

Absolutely and this can sometimes be a very clever strategy depending on your personal situation. This is commonly called debt consolidation and it’s where you take one loan out to pay off your existing debts (multiple loans). If you get the right help, you can sometimes get a lower interest rate and fees than your credit cards or other loans. This means you’ll save money on interest and can hopefully pay off your loan faster. The other really big benefit is that you end up with one single monthly repayment rather than multiple repayments on different loans. This just makes it easier to manage.

A credit score is a number generated by credit reporting agencies that provides an indication of your credit worthiness. A credit score is really important as they can significantly affect your ability to get a loan and how much that loan will cost (the interest rate and other chargers).

For more information on credit scores read our article "What is a credit score".

The exact formula is not disclosed by credit reporting agencies however there are several key factors that they consider like the amount of money you’ve borrowed, the number of loan applications you have made, your repayment history and any defaults, bankruptcies, debt collection agency agreements or short-term credit you have.

For more information on credit scores read our article "What is a credit score".

Yes, your credit score can affect the rate you are offered and how much you can borrow on a personal loan.

 

Typically if you have a really good credit score you’ll be able to get a low interest rate and have more lenders willing to borrow money to you.

 

But don’t despair if you don’t have a perfect credit score. There are a number of other factors that impact your ability to get a loan like whether you own a property or asset to provide security or not. That’s why it’s best to work with us as we know the lending policies of all the lenders on our panel which gives us the best chance of finding a loan that suits your circumstances. 

 

For further information on credit scores read some of our great articles like “What is a credit score?” and “How do I improve my credit score?”.

Through us! We have state of the art technology and an Australian based team that will quickly present you loan options from our large panel of lenders. We have a 4.9 Google rating from over 500 reviews so we think we can look after you! Apply here.

The higher your credit score the better your chance of getting a loan and the better chance you have of getting a lower interest rate. This is because if you have a really good credit score you are a lower risk to a lender and therefore are a good chance of paying back the loan. Conversely, if you have a lower credit score a lender may classify you as having higher risk and therefore charge a higher interest rate.

In addition to your credit score, other factors like overall banking conduct (such as dishonours and payday loans) can also impact the interest rate you are offered. 

At nmoni we do not perform upfront credit checks. This means that we can review your application and give you a guide as to whether a lender will give you a loan before a credit check is completed. Our process reduces the number of credit checks required and therefore helps you avoid hurting your credit score. Start the process today by completing our fast application.

This is really important as you don’t want to get a loan with a lender that charges high fees and has high exit costs. We only deal with reputable lenders so we can ensure you avoid any of these potential potholes. Also, make sure the lender or broker you use has high Google ratings (we happen to have a 4.9 out of 5 Google rating!).

Secured loans are amongst the easiest loans to get. That's where you put up something of value in exchange for funding. Car, boat and caravan loans are types of secured loans and means the lender has some security over the loan.

We can review your situation and provide feedback on why you are being declined without hurting your credit score. Apply now and we'll provide you valuable feedback.

Because we combine sophisticated technology with a highly skilled Australian team, we can quickly give clients feedback on their chances of getting a loan, the amount they can borrow and of course the interest rate. All without hurting your credit score by performing a soft credit check. Apply now to give us a test!

Many people can qualify for our loans with no upfront credit checks. This may include those with excellent credit to poor credit history and those who have been bankrupt in the past who are applying for car loans. Complete our quick application form and you’ll be on your way to a quick response. There could be more financing options available to you than you initially thought!

Simply complete our fast online application. Our technology will quickly guide you through the process. We will give you feedback on your loan application all without doing an upfront credit check.

real customer reviews

Excellent

4.9 Google rating
based on 500+ reviews

After searching for a car loan I found nmoni. They are very helpful… keep you up to date at the progress of your loan. And made settlement a breeze. Thank you Chris and Michelle you are both amazing.

Jodie Bayliss

Nmoni is such a great lending company, Christina is the best of best broker, person and very understanding. Great customer service and very helpful any time, she actually answers the phone unlike other company employers who do not care. She Actually cares and Christina does everything in her power to help and solve your issues. Thank you Nmoni and thank you Christina.

Mirjana Markovic

Great loan company that really cares about its customers. Avoid big banks and get your loan requirements through Nmoni instead. You’ll get a much more caring a personalised service. Christina in particular was great!

Fabio Hawkins

So easy to apply and well mannered and efficient staff make the process so easy.
Christina was so helpful. I will be letting friends know of this great service.

Christina Watson

Christina was excellent. Prompt responses and kept me up to date during the whole process. Great to have someone take the time to review your current situation and not something that happened several years ago.

Scott McKenzie

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How we find great rates

1. Complete our online application

10 minutes is all it takes.

2. We search for the best lenders

We go to work to find the best deal for your situation from a panel of over 35 lenders.

3. Choose your loan

Choose your preferred lender with complete transparency of rates and fee's.

4. We send you the money!

Review and sign the loan documents and we transfer the money within 24 hours.

Use the nmoni advantage to save

We compare, you save

We'll find a great deal from our panel of over 35 lenders.

Low rates

We use our 20 years of experience and cutting edge technology to find you the lowest possible rate for your circumstances

Protect your credit score

Applying for a loan won't impact your credit score until you are ready to proceed.

No nasty surprises

All fees and charges are fully disclosed upfront so you know exactly what is going on and what it’s going to cost.

Easy. Apply in 10 minutes.

We’ve built a simple, easy and secure online system to fast track your loan request.

Speedy decisions

We can provide approvals within a few hours.

Fast Funding

Get your funds the same day.

Flexible loan repayments

To suit you and your situation.

Bad credit history considered

We look beyond your credit score to understand your situation.

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