The short answer: there is no single "good" personal loan rate, because the rate you are offered depends on your situation and the wider market. As a guide, secured personal loans usually have lower rates than unsecured ones, and your credit history, loan amount, term and lender all move the number. Rates across the market have also been higher through 2026 than in the low-rate years, because the Reserve Bank cash rate is higher. The better question than "what is a good rate" is "what is a good rate for me, right now, compared fairly across lenders." And the fair way to compare is the comparison rate, not the advertised headline rate, because it includes the fees that a low headline number can hide.
A good rate is one that is competitive for your circumstances, not a fixed number you can quote from a blog. Two people can walk into the same lender and be offered different rates based on their credit history and whether the loan is secured. So rather than chasing a magic figure, the useful move is to understand what drives your rate, then compare like-for-like offers using the comparison rate. That is how you tell a genuinely good offer from a good-looking one.
Several things shape a personal loan rate. Whether the loan is secured matters most: according to ASIC's Moneysmart, secured personal loans usually have lower rates than unsecured ones, because an asset backs the loan and lowers the lender's risk. Your credit history matters, as a stronger record often means a better rate. The loan amount and term play a part, as do the individual lender's pricing and fees. And the whole market sits on top of the Reserve Bank's cash rate, which influences the cost of borrowing across the board.
The cash rate sets the baseline cost of money, so when it is higher, borrowing generally costs more. The Reserve Bank held the cash rate at 4.35% in June 2026 after lifting it earlier in the year, a higher setting than borrowers saw during the low-rate period a couple of years ago. That does not translate one-to-one into personal loan rates, which include the lender's own margin and your risk profile, but it is why rates across the market have been firmer in 2026. When you read an old article quoting a rate, check the date, because the environment moves.
The comparison rate is the number that tells you the true cost, so it is the one to compare. Moneysmart defines it as a single figure that combines the interest rate with most fees and charges. A loan with a low advertised rate but high fees can end up costing more than one with a slightly higher rate and no fees, and the comparison rate is what exposes that. When you compare offers, line up the comparison rates for the same loan amount and term, and check the total amount repayable over the life of the loan.
You improve your odds by presenting as a lower risk and by comparing widely. A stronger credit history, a secured loan where it suits, a shorter term, and clearing other small debts first can all help. Comparing across many lenders rather than accepting the first offer is the other half, because rates vary and a single bank only shows you its own. This is where a broker earns their keep, comparing a panel of lenders for your situation rather than leaving you to ring around.
What is the average personal loan interest rate in Australia? It varies by lender, loan type and borrower, and it moves with the market, so any single average dates quickly. Secured loans generally sit lower than unsecured ones. The most reliable approach is to compare current comparison rates for your situation rather than rely on an average.
Is a fixed or variable personal loan rate better? A fixed rate gives you certainty, as your repayments stay the same for the term. A variable rate can rise or fall with the market. Which suits you depends on whether you value predictability or flexibility, and on where you think rates are heading.
Does my credit score change the rate I get? Often, yes. A stronger credit history can mean a lower rate, because the lender sees you as lower risk. It is one factor among several, including whether the loan is secured and the lender's own pricing.
How do I compare personal loan rates properly? Compare the comparison rate, not just the advertised rate, for the same loan amount and term, and look at the total amount you will repay. That way fees are included and you are comparing like with like.
Written by Ashley, founder of Noma Finance. Before becoming a finance and asset broker, Ashley worked at car dealerships and has personally held every loan type Noma helps with. Noma compares options across a panel of lenders to help people find finance that fits their situation, explained in plain English.
If you want to know what is genuinely competitive for your situation, we can compare it across our panel and explain the numbers, no pressure. Book a call or apply online.
This article is general information only. It does not take into account your objectives, financial situation or needs, and it is not financial or credit advice. Consider whether it is appropriate for you and seek advice from a licensed professional before making a decision. Rates and the cash rate change over time, so the information is current as at the date below only. Check the linked sources for the latest.
Last updated: July 2026.
- ASIC Moneysmart, Personal loans: https://moneysmart.gov.au/loans/personal-loans
- ASIC Moneysmart, Comparison rate (glossary): https://moneysmart.gov.au/glossary/comparison-rate
- Reserve Bank of Australia, Cash rate: https://www.rba.gov.au/statistics/cash-rate/
Sources last checked July 2026.
Written by Ashley, founder of Noma Finance. Before becoming a finance and asset broker, Ashley worked at car dealerships, and has personally held every loan type Noma helps with. Noma compares options across a panel of lenders to help people find finance that fits their situation, explained in plain English.
This article is general information only. It does not take into account your objectives, financial situation or needs, and it is not financial, credit or tax advice. Consider whether it is appropriate for you and seek advice from a licensed professional before making a decision. Tax outcomes for novated leases and chattel mortgages depend on your circumstances, so speak with a licensed tax adviser or accountant. Any figures used are illustrative only.
