Personal Lender of the Year
Low interest rates, flexibility and quick approval are just what borrowers need at present
According to Reserve Bank of Australia (RBA) data, outstanding personal loans in Australia amounted to more than $163.7 billion as at March 2020. The average variable interest rate for a personal loan was 14.41% while the average rate for a fixed personal loan was 12.42%. That’s a lot to pay in interest, highlighting why it is so important to shop around for the best deal.
This year sees Move Bank win Personal Lender of the Year, showing once again that great options exist outside the big four banks.
For Move chief executive Therese Turner, success in the personal loan space is all about trust and value. “Now more than ever customers want to work with a lender they can trust to provide straightforward value,” she says.
“We’re finding people are asking a lot more questions before they make a commitment, to make sure they understand exactly what they’re signing up for.”
Move Bank rises to the challenge, says Turner, with great rates, no ongoing fees and the flexibility to make extra repayments without penalties. “Our simple online loan application means you can go from application to getting access to your funds within two business days.
“Additionally, as a customer-owned bank, 100% of our profits are reinvested to benefit customers, which means we can offer great value, easy-to-use products and the latest digital banking technology.”
Need a new car? Move Bank customers can get a 4.89%pa fixed-rate loan with no ongoing fees, and the flexibility to redraw and make penalty-free extra repayments. And it can all be achieved quickly.
“Probably the biggest issue for consumers at the moment is the ability to get finance without a face-to-face appointment,” says Turner. “This has gone from being a matter of convenience to a matter of necessity due to recent social distancing restrictions.”
She says this all adds up to great value delivered by fast service.
In second place, Australian Military Bank is now offering car loans with interest rates between 3.6% and 7.3% depending on your credit history. The bank’s variable and fixed-rate personal loans now vary between 4.85% and 11.9% and again it depends on your credit history. These rates were as at April 28, 2020; however, our awards were judged on data available as at March 31, 2020.
Third-placed First Option Bank is currently offering car loans starting at 8.99%pa for a fixed period of up to seven years, and its one-year fixed-rate personal loan is priced at 10.99%pa. Both its car loans and personal loans have an admin fee of $175 and have redraw facilities.
Demonstrating how competitive this category is, none of the top three banks from 2019 features in the top three for 2020.
Comparison website Infochoice says you can find good-value personal loans for under 7%pa, but what is best for you will differ from what is best for someone else because your needs and circumstances are different. And your current bank won’t always offer the best rate.