which offer cheaper personal loans and BIGGER savings in 2021?

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According to a 2019 Mozo study, Big 4 banks could cost borrowers up to 20% more in interest fees on personal loans than customer-owned banks.

But now, in 2021, the big players seem to have caught up and could be real competitors when it comes to low interest rates.

For example, if you took out a $ 10,000 unsecured personal loan over 5 years in 2019, you could save a total of $ 733 in total interest by simply going from the Big 4 average rate of 13.40% pa to the average customer bank rate of 10 , 99% change per year

In 2021, you can save a total of USD 227 in interest on the same loan with the same terms by switching from the average customer bank interest rate of 10.12% pa to the average Big 4 rate of 9.35% pa.

Unlike two years ago, if you deviate from the average interest rates, you can now see savings in interest costs by switching from the customer’s own to the Big 4.

It is also noteworthy that the savings amount has decreased from $ 733 to $ 227, which shows that while the personal loan market has grown in terms of the number of options and providers, it is more focused on interest rates.

However, that does not mean that the Big 4 definitely offer the best personal loan rates compared to customer-owned banks.

There are over 40 financial institutions in the Mozo database that qualify as custom; Hence, there is a wider range of rates with far more data points on average than the Big 4 – which only have four.

With that in mind, you can still rely on customer-owned banks when it comes to getting more bang for your buck.

If you place the lowest unsecured personal loan from a customer-owned bank in the Mozo database – Police Bank Variable Unsecured Personal Loan at 5.79% pa (5.92% pa comparison rate) – next to the lowest rate of the Big 4 – NAB Unsecured Variable Personal Loan at 6.99% pa (7.91% pa comparison rate) you will find an interest cost saving of 337 USD.

So, with all types of lenders popping up and offering more competitive rates, it’s time to shop around and find the one that works best for you – be it from a major bank, a customer-owned bank, or even an online lender.

Make sure you are familiar with the personal loan features that may fit your lifestyle. A good place to start is the Mozo Personal Loan Headquarters for comparisons from over 70 lenders.

Check out these top low interest personal loans:

* WARNING: The Comparison Rate combines the interest rate, fees, and lender fees into a single rate to show the true cost of a personal loan. The comparison rates shown are calculated based on a loan of $ 30,000 for a period of 5 years or a loan of $ 10,000 for a period of 3 years as specified, based on monthly principal and interest payments, on a secured basis for secured loans and a unsecured basis for unsecured loans. This comparative sentence applies only to the example or examples given. Different amounts and terms lead to different comparison rates. Costs such as redemption fees or early repayment penalties as well as cost savings such as fee exemptions are not included in the comparison price, but can influence the cost of the loan.

^ See Mozo Experts Choice Personal Loan Awards information

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

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