unsecured personal loans

What you need to know and how to avoid the traps.

The nmoni difference:

Unsecured loans: What you need to know and how to avoid the traps.

What is an unsecured loan?

An unsecured personal loan allows you to borrow money without using an asset like a car or home to support your ability to repay your loan. This means there is more risk for the lender as they cannot take possession of your assets to recover some of their losses if you fail to repay.


What are the pros and cons of an unsecured personal loan?


Lower risk to you: If you fail to repay the loan the risk to your assets is lower as the lender hasn’t got any assets linked to your loan that they can repossess to cover their losses.

Faster: Because you don’t need to provide details of an asset and it’s value the loan application is generally faster.


Higher Interest rates: generally speaking, interest rates are higher on unsecured loans because they are riskier for the lender.

Less lenders: There does tend to be less lenders who do unsecured loans so you may have fewer options. For this reason it’s really important to use an online loan service like ours as we know the lenders and know how to find a loan that can save you money.


What can I use an unsecured loan for?

You can use an unsecured loan for things like home improvements, debt consolidation, cosmetic surgery, holidays and weddings.  


What are some of the traps I should be aware of?

Trap 1: Not shopping around

Just because there may be less options for unsecured loans doesn’t mean you have to accept a higher interest rate or expensive fees.

But I hear you say “shopping around takes time, is a hassle and I need money fast.”

Instead of contacting many lenders yourself, use an online loan service like nmoni. In minutes we can check your loan requirements with up to 40 of the best and most competitive Australian lenders to find you a loan that can save you serious money.

Trap 2: Hurting your credit score

When looking for an unsecured personal loan some people start applying for a loan directly with many different lenders.

This can cause a big problem because applying for too many personal loans can impact your credit score as lenders do what’s called a hard credit check.

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

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

At nmoni we avoid all these issues because we don’t do upfront credit checks. This protects your credit score while we check with up to 35 lenders for a loan that suits you. This is really important as your credit score can have a big impact on the interest rate you get.

Trap 3: Getting tricked by low rates

This may sound odd but sometimes the lowest interest rate is not the best personal loan for you. Some lenders offer a low rate but charge high application fee’s, establishment fees or monthly fee’s. This means the overall cost of the loan (interest plus fees) is actually more than a personal loan with a higher rate but little to no fees.

This is why it’s important to use us. We clearly layout all the fees and charges associated with a loan so you can compare options much more easily and work out which loan option is the best for you.

Trap 4: Getting a payday loan or short-term loan

Loans under $5,000 (but generally less than $2,000) are often called payday loans or short-term loans.

These loans can be very convenient, fast and require no asset as security. Unfortunately, the downside is they can be very expensive because they have very high fees. For example, some payday loans under $2,000 charge 20% of the amount borrowed and a monthly fee of 4% per month. They also have high default fees. These types of loans can also affect your credit score. Finally, some lenders won’t lend you money if you have too many of these types of loans.

If you are considering a payday loan think it through really carefully and make sure you are aware of all costs, terms and conditions. If you apply for a loan through us we can let you know your options for your situation from our large panel of lenders.


What loan features should I check?

Check the interest rate and the comparison rate: The comparison rate takes into account fees and charges associated with the loan to give you a new interest rate. This comparison rate is usually higher than the interest rate because of these fees and charges. As the name suggests, the comparison rate will allow you to compare loans from different lenders more easily. We can help you work all of this out as we find you a loan from our many lenders.

Loan size and term: Unsecured loans generally range from $10,000 – $80,000 but this can vary by lender. Loan terms are between 1 and 7 years (5 years is common).

Fees and charges: Make sure you are aware of all the fees and charges. Knowing the comparison rate will also help here. We lay this all out for our clients.

Fixed or variable interest rates: Most personal loans have a fixed rate but there are some with variable rates. Make sure you know what you are signing up for!

Repayment frequency: Are the loan repayments weekly, fortnightly or monthly?

Repayment terms: Can you make additional repayments? Can you redraw extra amounts you have paid back if something comes up?


What are the interest rates on an unsecured personal loan?

This is where you need to be careful. Many lenders offer tempting low interest rates but they are for people with the very best credit history or there are a lot of hidden fees and charges.

Rather than be fooled by these low advertised rates, use an online loan service like ours. Once we collect a few details we will check with up to 35 of the most competitive lenders in Australia to find a personalised rate for you that can save you money. It pays to shop around, and we make it really easy to quickly check the rate you can get from a large panel of lenders. We also clearly explain any fees and charges so you avoid getting surprised.


Why do people use unsecured loans if the interest rate is higher?

Sometimes you might not have an asset to offer as security on a loan so you don’t really have a choice. There are people who do have assets but they might not want to risk them or they want to use them for other loans or purposes. It really depends on your personal situation. We can help you understand your options to make your decision of going secured or unsecured easier.


Who offers unsecured personal loans?

The good news is that the Australian lending market is very competitive as long as you know where to look. We have over 35 of the most competitive lenders in Australia at our disposal and, when combined with our state of the art technology, we can quickly show you your lending options and how you can save money.


Isn’t a credit card more convenient than an unsecured personal loan?

A credit card is very convenient – you just pull it out and swipe! The only problem is that the interest rate is usually much higher than a personal loan making any purchases very expensive.


Am I eligible for an unsecured personal loan and how do I apply?

If you need an unsecured 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 a personal loan that works for you and saves you serious money.

Frequently Asked Questions

The fastest way to find out your personal loan options is to apply with us. We will take the information you provide and check up to 35 lenders for a great loan that suits your situation. We'll layout all the fees and charges and make the whole process really easy. Just sit back and relax while we use our state of the art technology that makes the process fast and hassle free. You can apply here

Generally speaking, interest rates are higher on unsecured loans because they are riskier for the lender as there isn’t an asset they can repossess to offset any losses if you fail to repay the loan.  

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 $10,000 - $80,000 and the term of the loan ranges from 1 to 7 years (5 years is pretty common).

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 but generally under $2,000) 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. Personal loans are generally taken out over 1 – 7 years and loan amounts between $10,000 - $80,000. 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 1200 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

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4.9 Google rating
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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

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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

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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!

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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

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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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