Best Personal Loan Options in Australia 2025 – Interest Rates & EMI Guide

Introduction

In 2025, personal loans remain a vital financial tool for Australians seeking to fund everything from car purchases and home improvements to weddings or debt consolidation. Whether you’re after low interest rates, flexible terms, or green loan options, knowing where to look—and how to evaluate loans—can save you thousands. This guide aims to help you navigate the best personal loan products in Australia, understand current rate trends, and manage repayments using EMIs.

Ad / 3-4

Click To Download

Loan Landscape in 2025: Key Trends

Australians are borrowing at an average rate of $2.5 billion per month in new personal loans, with an average loan amount of $22,643.CIMET
Average unsecured personal loan rates sit at 13.87% p.a., but borrowers with excellent credit enjoy far better rates (around 9.79% p.a.), whereas those with poor scores may face rates as high as 25.25% p.a.CIMET

This illustrates how creditworthiness significantly impacts your loan terms—making it essential to check and improve your credit score before applying.Econnex

Top Personal Loan Offers in Australia (2025)

Here’s a breakdown of standout options based on unsecured, secured, and green loans:

Unsecured Loans (Excellent Credit)

Harmoney: From 5.76% p.a. (comparison rate 6.55%)Savings.com.au InfoChoice.com.au
OurMoneyMarket Low Rate: Starts at 6.28% p.a. for exceptional credit borrowers, with free redraw and no feesMozo
Now Finance: Fixed rates from 6.45% p.a., no establishment or service fees and flexible repaymentsMozo BestFind
Plenti: Starting at 6.28% p.a. variable or fixed for exceptional credit profilesSavings.com.au

Secured Loans (Green-focused)

Bendigo Bank Green Loan: Secured personal loan from 5.49% p.a. (comparison rate 5.84%)—ideal for eco-vehicles or green improvementsSavings.com.au InfoChoice.com.au
CommBank Green Loan: Green home improvement loans at 3.99% p.a.Money.com.au

Traditional Banks

Commonwealth Bank: From 6.99% p.a. for existing customersWiki Mundi
ANZ: Starting at 7.49% p.a.Wiki Mundi
Westpac: From 6.99% p.a., with potential discounts for current customersWiki Mundi
Teachers Mutual Bank: Competitive rate from 5.95% p.a. for membersWiki Mundi
SocietyOne: Online peer-to-peer lender offering 6.49% p.a. with fast approvalsWiki Mundi

Summary Table: Comparison of Leading Loan Types

Loan Type	Example Lender	Starting Interest Rate (p.a.)	Highlights
Unsecured, Excellent Credit	Harmoney	5.76% (6.55% comp)	Low rate, fast online process
Unsecured, Excellent Credit	OurMoneyMarket	6.28%	Flexible, redraw feature, no fees
Unsecured, Excellent Credit	Now Finance	6.45%	No fees, flexible repayment
Green Secured (eco purchases)	Bendigo Bank	5.49% (5.84% comp)	For eco-improvements/vehicles
Green Home Improvement	CommBank	3.99%	Lowest green option available
Traditional Bank Loans	CBA / Westpac / ANZ	6.99–7.49%	Familiar banks, discounts possible
Members-Only Loans	Teachers Mutual Bank	5.95%	Lower rates, member benefits
Online Peer Lender	SocietyOne	6.49%	Streamlined approvals

EMI (Repayment) Guide

What is EMI?

Equated Monthly Installment (EMI) is a fixed monthly amount covering both principal and interest.Wikipedia

Formula:
A = P × [r(1 + r)^n] / [(1 + r)^n – 1]

P: principal
r: monthly interest (annual rate ÷ 12)
n: total months

Example:

For a $20,000 loan over 5 years (60 months) at 6% p.a.,
A ≈ $386 per month.

For accurate calculations, you can use EMI calculators like the one from Bank of Baroda, though designed for India it demonstrates functionality:Bank of Baroda

Tips to Secure the Best Loan

Check & Improve Your Credit Score—better scores mean better rates.Econnex
Always Compare Comparison Rates, which include fees over just the advertised rate.Econnex InfoChoice.com.au
Prioritize Transparent Terms—no hidden fees or penalties for early repayment.Reddit Econnex
Consider Loan Term Length—shorter term = higher monthly payments but less interest overall.Econnex
Use Reputable Comparison Platforms (Mozo, Money.com.au, Savings.com.au) to view market options.Mozo Savings.com.au Money.com.au

Borrowers’ Insights (Community Voices)

“The cheapest by far is Harmoney at 5.76%. I looked at their fees—there’s a small establishment fee and no monthly fees.”
— Reddit user discussing personal loan optionsReddit

“NAB’s ads say no exit fees if paid out early before the term ends… I’d confirm it with the bank before signing up.”
— Cautionary borrower perspectiveReddit

Conclusion

In 2025, personal loans in Australia offer competitive opportunities—especially for those with excellent credit. If you’re prioritizing low rates:

Go with Harmoney for the lowest unsecured rates.
Choose OurMoneyMarket or Now Finance for flexibility and ease.
Opt for green secured loans like Bendigo Bank’s offering or CommBank’s Green Loan if energy-efficiency is a goal.
Traditional banks provide reliability, but expect slightly higher rates.

To manage repayments effectively, understand EMI formulas and choose repay plans aligned with your financial capacity and goals.