Regulated credit for personal purposes
Personal loans compared on comparison rate, not headline rate.
Regulated consumer lending with responsible lending assessment. We show the comparison rate, the fees and the total repayable before you decide.
Personal finance products are regulated consumer credit under the National Consumer Credit Protection Act 2009. Lyft Capital Pty Ltd (Australian Credit Licence 541052) acts as a credit assistance provider, not a lender. Approval is subject to the lender’s responsible lending assessment. Comparison rates are based on a $30,000 loan over 5 years unless stated; different amounts and terms produce different comparison rates. Fees, charges, terms and conditions apply.
What is a personal loan?
A personal loan is a fixed-term consumer loan for personal purposes such as renovations, medical costs, a wedding or debt consolidation, usually unsecured and regulated under the National Consumer Credit Protection Act. Lenders must verify your income and expenses and quote a comparison rate before you commit.
Personal loans sit between a credit card and a mortgage. They carry a fixed term and a fixed repayment, so the debt actually ends — unlike revolving credit, where minimum repayments can extend a balance for years. Typical amounts run from $5,000 to $75,000 over one to seven years, unsecured, with rates driven heavily by credit score. Strong-credit borrowers see single digits while impaired files price into the twenties.
Because this is regulated consumer credit, the process is deliberately more rigorous than business lending. The lender must make reasonable enquiries into your financial situation, requirements and objectives, verify that information, and assess whether the loan is not unsuitable for you. That means payslips and bank statements rather than a declaration, and it is a protection rather than an obstacle — the assessment exists to stop people being lent money they cannot repay.
Consolidating credit cards into a personal loan is one of the most common uses and one of the easiest to get wrong. Moving $20,000 of card debt at 21% onto a five-year personal loan at 12% saves real money, but only if the cards are then closed. Your broker will model both the saving and the risk, and will tell you when your situation calls for financial counselling rather than more credit.
Personal loan at a glance
| Amount | $3,000 – $100,000 |
|---|---|
| Term | 12–84 months |
| Rate type | Fixed |
| Indicative rates (Q3 2026) | 7% – 25% p.a. · see rate history |
| Security | Unsecured (guarantee may apply) |
| Repayments | Weekly, fortnightly or monthly |
| Typical speed | 1–5 business days |
| Best for | Individuals funding a defined personal expense who want a fixed end date to the debt |
| Consider something else if | Business purposes, which need business lending, or ongoing shortfalls that credit cannot fix |
| Tax | Interest on borrowing for private purposes is not tax deductible. |
Advantages
- Fixed term means the debt has a defined end date
- Usually cheaper than credit card interest
- Full NCCP protections including hardship provisions
Trade-offs
- Unsecured pricing is higher than secured lending
- Rate depends heavily on credit score
- Consolidation fails if the paid-off cards are used again
How to apply for a personal loan
- 01
Define the purpose and amount
What the money is for, how much you need, and the repayment you can sustain alongside existing commitments.
- 02
Compare true cost
Your broker presents comparison rates, establishment and ongoing fees, and total repayable across lenders.
- 03
Verify and settle
The lender verifies income and expenses under responsible lending rules, then funds are released on approval.
Documents lenders commonly ask for
- Photo ID and proof of address
- Recent payslips or income evidence
- 3 months of personal bank statements and a list of existing debts
Estimate your repayments
- Number of repayments
- 48
- Total interest (est.)
- $22,475
- Total repaid (est.)
- $97,475
This calculator provides an estimate only and does not account for fees, charges or the specific terms a lender may offer. It is not financial advice or an offer of finance.
Key terms
What is a personal loan?
A personal loan is a fixed-term consumer loan, usually unsecured, used for personal purposes such as renovations, medical expenses, travel or debt consolidation. It is regulated consumer credit under the National Consumer Credit Protection Act.
What is a comparison rate on a personal loan?
A comparison rate expresses the interest rate together with most fees and charges as a single percentage on a standard example loan, so products can be compared on true cost. Australian lenders must display it alongside any advertised consumer credit rate.
How does responsible lending apply to personal loans?
A lender or broker must enquire into and verify your financial situation, requirements and objectives, then assess whether the loan is not unsuitable — that is, whether you could repay it without substantial hardship and whether it meets your stated needs.
Secured or unsecured personal loan?
An unsecured personal loan has no asset attached and prices higher. A secured personal loan is backed by an asset such as a vehicle and prices lower, but that asset can be repossessed if repayments stop.
Personal loan FAQs
What do responsible lending obligations mean for me?
Under the NCCP Act, we must make reasonable enquiries into your requirements and objectives and your financial situation, take reasonable steps to verify what you tell us, and assess whether the credit is not unsuitable for you. In practice that means questions about income, expenses, dependants and existing debts, and asking for payslips or bank statements to verify them. It is not paperwork for its own sake — it exists so you are not put into a loan you cannot afford.
Why is the comparison rate higher than the advertised rate?
Because a comparison rate folds most standard fees and charges into the interest rate to give a single figure for comparison. A loan with a low headline rate and a large establishment fee will show a noticeably higher comparison rate. The rate is calculated on a standard example amount and term set by regulation, so it will not match your loan exactly, but it is the fairest quick comparison between two consumer loans. Always look at both figures plus the total repayable.