Personal loans are a fast and flexible way to access the funds you need, and it’s clear that plenty of Australians are making use of them. The latest lending indicators from the Australian Bureau of Statistics show that the value of new fixed term personal loan commitments sat at a record $9.446 billion in the December Quarter of 2025. Before you apply, though, it’s worth understanding what they are and how they work.
Unsecured personal loan interest rates
Unsecured personal loan rates correct as of 8 April 2026.
What is an unsecured personal loan?
An unsecured personal loan is a fixed-term loan that can be used for a wide range of purposes. It doesn't require you to offer any asset as security, unlike a home loan or secured car loan. Instead, your approval and interest rate are determined primarily by your credit history, income and overall financial position.
You can take between one and seven years to repay your loan, with the choice of weekly, fortnightly or monthly instalments. Because there's no security involved, interest rates tend to be higher than secured loan products.
They can be used for a wide range of purposes, including:
- Debt consolidation: combining multiple debts like credit cards, buy now pay later (BNPL) balances and other personal loans into a single repayment
- Home renovations: funding improvements or repairs to your property that you don't have the savings to cover upfront
- Medical and dental expenses: covering the cost of procedures, treatments or hospital bills not fully covered by Medicare or private health insurance
- Vehicles: purchasing a car, motorbike or other vehicle when it doesn’t qualify for a secured loan (such as if it’s too old)
- Travel: paying for flights, accommodation and other expenses for a holiday or trip
- Weddings: covering the costs of your ceremony, reception, honeymoon and other wedding expenses
How much can I borrow with an unsecured personal loan?\
Unsecured personal loans are typically available from $5,001 up to $75,000. Some may enforce lower borrowing caps between $50,000 to $65,000, but that’s where a broker can help. They’ll only put your application in front of lenders whose caps meet your needs.
However, the amount you can borrow ultimately depends on your personal profile and factors specific to you. These can include:
- Income: a higher and more stable income generally leads to greater borrowing power
- Existing debts and liabilities: if you already have significant financial commitments such as a home loan, car loan or credit card debt, lenders will factor these into their assessment and adjust the amount they're willing to lend
- Credit score: a stronger credit history signals lower risk to lenders, which can lead to both a higher loan amount and a more competitive interest rate
- Living expenses: lenders will assess your day-to-day expenses alongside your income to determine how much you can afford to pay
- Number of dependants: supporting children or other dependants reduces your disposable income, which can affect how much a lender is willing to offer you
If you want to borrow an amount of $5,000 or less, you aren’t going to find a bank that’ll accept an application for it. Your only choice for a small sum like that is with a cash loan from a specialist lender.
How to get your profile in tip-top shape before you apply
"Many people focus on getting the lowest interest rate, but that's only half the story. A loan with fewer fees, flexible repayment options or no early exit penalties can often save you more in the long run. Don't just ask 'what's the rate?'; find out what the total cost of the car loan will be over its life."
How to compare unsecured personal loans
Your unsecured personal loan’s interest rate is among the most important factors to consider when weighing up your finance options, as even a small difference in rates could lead to hundreds of dollars in savings. However, there’s more to compare than just the rate, as you can see here:
- Comparison rate: this combines the interest rate and standard, unconditional fees into a single figure, giving you a more accurate picture of the true cost of the loan
- Fees: common fees on unsecured personal loans include the establishment fee (up to $600), monthly service fees (up to $15) and late repayment fees. Some lenders charge some or none of these, so it's worth checking the fine print before you apply
- Loan term: as mentioned, terms typically range from one to seven years, though not all lenders offer the full range. A longer term reduces your monthly repayments but increases the total interest you'll pay over the life of the loan
- Repayment flexibility: look for loans that allow free additional repayments, as this gives you the ability to pay off your loan ahead of schedule and reduce your total interest cost
- Fixed vs. variable rate: a fixed rate locks in your repayments for the life of the loan, making budgeting straightforward, whereas a variable rate may rise or fall over time, which means your repayments could change, but additional payments are more commonly available
Secured vs unsecured personal loans: what’s the difference?
The key difference between an unsecured and secured personal loan is whether or not you're offering an asset as security. With a secured loan, the lender holds a claim over an asset you own, usually a car or property, which they can repossess and sell to recover their money if you default. With an unsecured loan, no such security is required.
Because unsecured lenders take on more risk, they typically offset this by charging higher interest rates and imposing lower borrowing limits. The table below summarises how the two products compare:
| Unsecured | Secured | |
|---|---|---|
| Security required | No | Yes |
| Typical loan amounts | $5,000 to $75,000 | $5,000 to $100,000 |
| Interest rates | Higher | Lower |
| Loan terms | 1 to 7 years | 1 to 7 years |
| Approval speed | Faster | Slower |
| Risk to borrower | No asset at risk | Asset can be repossessed if you default |
Which is the better option will depend on your circumstances. If you don't own a suitable asset to offer as security (for example, your car is too old), need funds quickly or are borrowing a smaller amount, an unsecured loan is likely the more practical choice. If you need to borrow a larger sum and want access to a lower interest rate, a secured loan may be worth considering.
How to apply for an unsecured personal loan
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Fill out our simple online form
Tell us how much you want to borrow, as well as details about yourself and your finances.
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Provide necessary documents
We’ll need to verify details like your identity and income through document submission.
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Speak with your Savvy broker
Once we have all the info we need, your broker will give you a call to talk you through your options.
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Have your application submitted
They’ll get your application prepared and submit it to your lender on your behalf.
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Get approved and settle the loan
You can be formally approved soon after, so we’ll handle the loan settlement and you’ll receive your funds!
Why apply for a personal loan with Savvy?
Unsecured personal loan pros and cons
Pros
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No asset required as security
You can access finance without needing to put a car, property or other asset on the line.
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Flexible use of funds
Unlike many other loan types, unsecured personal loans can be used in almost any way you like.
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Fast approval
With no asset valuation required, unsecured personal loans can often be approved and funded within the same day.
Cons
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Higher interest rates
Because lenders take on more risk without security, unsecured loans typically attract higher rates than their secured equivalents.
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Lower borrowing limits
Unsecured personal loans are generally capped at $75,000, which may not be sufficient for larger expenses.
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Credit score dependent
Borrowers with a weaker credit history will typically receive a higher rate, lower loan amount or be declined altogether.
