Snapshot Personal Loans: March 2022

At the start of a new season and looking back at how personal loan interest rates have evolved over the past few months, we saw several rate cuts.

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

Looking at the latest release of the ABS Lending Indicators, in January 2022 there was a seasonally adjusted increase in term personal loan commitments of 0.8%. It’s not much changed from December’s 0.7% month-on-month increase in consumer term loans.

In addition, the press release reported a 0.9% increase in new road vehicle loan commitments after a 0.6% decline in December. On the other hand, new loan commitments for own investments fell by 2.2% after a massive 17.4% increase in December 2021.

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

Changes in interest rates on personal loans:

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

Rate cuts:

  • BankVic lowered its adjustable rate unsecured personal loan by 200 basis points to 7.95% pa (8.08% pa benchmark rate*).
  • Bendigo Bank cut 180 basis points of its Secured Green Personal Loan fixed rate, which is now at 4.99% pa (5.70% pa comparable rate*) and 480 basis points of its unsecured option, taking it to 6.99% pa (7 .55% pa) lower comparison ratio*).
  • Teachers Mutual Bank lowered its fixed rate on general purpose unsecured personal loans by 49 basis points to 8.50% pa (8.64% pa comparable rate*).

Rate hikes:

  • The Commonwealth Bank increased its fixed rate on unsecured personal loans by 250 basis points to 11.50% pa (12.38% pa comparable rate*).
  • Police Credit Union increased its Better Car Loan Special Offer fixed rate by 100 basis points to 5.44% pa (5.71% pa comparable rate*)

Which lenders stand out?

Once again, we see that the lenders with the lowest personal loan interest rates in the Mozo database are Community First Credit Union, Alex Bank, Transport Mutual Credit Union and Credit Union SA – showing that smaller banks and credit unions are where it’s at for you is want a more competitive price.

How about reputable lenders?

After several months of little change in rates on personal loans from major banks, we saw the Commonwealth Bank raise its unsecured personal fixed rate from 9.00% pa (9.90% pa benchmark rate*) to 11.50% pa (12, 38% pa comparative interest rate*) increased.

It’s also worth noting that the big banks’ interest rates are typically much higher than those of most competing lenders. Currently, the Commonwealth Bank unsecured variable rate personal loan interest rate is just 9.00% pa, a decent jump from the lowest rate in the Mozo database of 3.99% pa

The four major variable rate personal loans:

The current lowest rate for a major bank adjustable rate personal loan in the Mozo database is the NAB Personal Loan (Adjustable Rate, Unsecured) at 6.99% pa (7.91% pa benchmark rate*).

As for the highest variable rate personal loan from a major bank in the Mozo database, that would be the Commonwealth Bank Unsecured Variable Personal Loan at 11.50% pa (12.38% pa benchmark rate*).

Big 4 fixed rate personal loans:

When it comes to fixed rate personal loans, the lowest fixed rate from a major bank in the Mozo database is none other than NAB’s personal loan (fixed, unsecured), which offers a 3-year fixed rate of 6.99% pa (7.91% pa benchmark rate). *).

The Commonwealth Bank Personal Loan with the highest fixed rate in the Mozo database is once again the Commonwealth Bank Unsecured Personal Loan (Fixed) which was upgraded last month to a 3-year fixed rate of 11.50% pa (12.38% pa benchmark rate *) has increased .

Important Personal Loan Rates in March:

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

* WARNING: The Comparative Rate combines the lender’s interest rate, fees and charges into a single rate to show the true cost of a personal loan. The comparative rates shown are calculated based on a $30,000 5 year loan or a $10,000 3 year loan as indicated, based on monthly principal and interest repayments, on a secured basis for secured loans and a unsecured basis basis for unsecured loans. This comparative rate applies only to the example or examples given. Different amounts and maturities lead to different comparison rates. Costs such as redemption fees or prepayment penalties and cost savings such as fee waivers are not included in the benchmark rate but may affect borrowing costs.

^See information on the Mozo Experts Choice Personal Loan Awards

Mozo provides general product information. We do not consider your personal goals, financial situation or needs, and we do not recommend any particular product. You should make your own decision after reviewing the PDS or offering documentation or seeking independent advice.

While we pride ourselves on covering a wide range of products, we do not cover every product on the market. If you choose to apply for a product through our website, you are dealing directly with the supplier of that product and not with Mozo.

Comments are closed.