Personal Loan Snapshot: March 2022

As we enter a new season and review the evolution of personal loan interest rates over the past few months, we have seen several rate cuts.

We’ve also seen the ever-growing list of low-interest loans available to purchase eco-friendly products continue to grow, with the addition of a new green car loan from MOVE Bank.

Watching the last Publication of ABS lending indicatorsthere was a 0.8% increase in fixed-term personal loan commitments (seasonally adjusted) in January 2022. Little change from the 0.7% increase in fixed-term personal loans in December compared to to the previous month.

In addition, the press release reports a 0.9% increase in new loan commitments for road vehicles, following the 0.6% drop in December. In contrast, new loan commitments for personal investment saw a decline of 2.2% after a massive increase of 17.4% in December 2021.

Interestingly, the report also noted a significant 41.6% increase in new business construction loan commitments (usually volatile series), indicating an upward trend in home renovations.

Personal loan interest rate changes:

Here’s what’s been happening with personal loan interest rates and supply changes lately:

Lower interest rates:

  • BankVic has cut its variable rate unsecured personal loan by 200 basis points to 7.95% per annum (comparator rate of 8.08% per annum*).
  • Bendigo Bank has cut its secured green personal loan fixed rates by 180 basis points to 4.99% per annum (comparator rate 5.70% per annum*) and by 480 basis points from its unsecured option, reducing it to 6.99% per annum (7.55% per annum). comparison rate*).
  • Teachers Mutual Bank lowered its fixed unsecured general purpose personal loan rate by 49 basis points to 8.50% per annum (comparative rate of 8.64% per annum*).

Interest rate increases:

  • Commonwealth Bank raised its fixed unsecured personal loan rate by 250 basis points to 11.50% per annum (comparator rate of 12.38% per annum*).
  • Police Credit Union has increased its Better Car Loan special fixed rate by 100 basis points to 5.44% per annum (comparative rate of 5.71% per annum*)

Which lenders stand out?

Once again we find that the lenders with the lowest interest rates on personal loans in the Mozo database are Community First Credit Union, Alex Bank, Transport Mutual Credit Union and Credit Union SA – which shows that smaller banks and credit unions are where they are if you want a more competitive rate.

What about reputable lenders?

After several months of little change among the major banks’ personal loan interest rates, we’ve seen Commonwealth Bank increase its unsecured personal fixed rate to 11.50% per annum (comparative rate of 12.38 % per year*) from 9.00% per year (comparative rate 9.90% per year*)

It’s also worth noting that the rates from the big banks tend to be much higher than those from most competing lenders. Currently, the Commonwealth Bank variable unsecured personal loan interest rate sits at just 9.00% per annum, a good jump from the lowest interest rate in the Mozo database of 3 .99% per year.

Variable rate big 4 personal loans:

Currently, the lowest major bank variable rate personal loan interest rate in the Mozo database is the NAB (variable, unsecured) personal loan, at 6.99% per annum (rate comparison rate of 7.91% per year *).

As for the highest major bank variable rate personal loan in the Mozo database, it would be the Commonwealth Bank Unsecured Variable Rate Personal Loan at 11.50% per annum (comparison rate of 12.38% per year*).

Big 4 fixed rate personal loans:

In terms of fixed rate personal loans, the lowest fixed rate from the major banks in the Mozo database is none other than the personal loan (fixed, unsecured) from NAB, which offers a fixed rate of 6.99 % per year over 3 years (comparative rate of 7.91% per year). *).

Once again, the highest fixed rate personal loan from the major banks in the Mozo database is the Commonwealth Bank Unsecured (Fixed) Personal Loan, which has increased to a fixed rate of 11.50 % per year over 3 years (comparative rate of 12.38% per year*) last month. .

Personal loan rate to note in March:

Looking for more personal loan options? So check out our personal loan comparison tool below to start comparing personal loan options today!

* DISCLAIMER: The comparison rate combines the lender’s interest rate, fees and charges into one rate to show the true cost of a personal loan. The comparative rates displayed are calculated on the basis of a loan of $30,000 with a term of 5 years or a loan of $10,000 with a term of 3 years as indicated, on the basis of repayments monthly principal and interest payments, on a secured basis for secured and unsecured loans. basis for unsecured loans. This comparison rate applies only to the example or examples given. Different amounts and durations will result in different comparison rates. Costs such as withdrawal fees or prepayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may affect the cost of the loan.

^ See Mozo Experts Choice Personal Loan Awards information

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Stephen V. Lee