Money Magazine Best of the Best Awards – Best Personal Loans 2011
The Best Personal Loans on Offer in 2011
Personal loans can be a handy option for many things, such as a vacation or renovating your home. With a fixed term and predetermined repayments, they often serve as an alternative option to a mortgage top up.
Lenders from the non-bank sector are generally popular in the personal loans arena, and research indicates that the lowest interest rates are with credit unions and building societies. You’ll also find that non-banks are more willing to provide much smaller loans than some of their bank competitors are. Take note also that non-banks offer lower loan minimums than the banks.
Take a look at these personal loan lenders:
Cheapest Personal Loans – Non-Banks
- First Option Credit Union - offers tiered loans based on loan term. Their 1-year loan has 10.25% interest, while a 3-year loan offers 12.25%. None of their loans require an up front fee. Minimum loan requirement is $1000.
- Horizon Credit Union - rate is 11% with a $100 up front fee. Minimum loan required is $500 and they allow early repayment with no penalty.
- Vic Teachers Credit Union - rate is 12.1% with no up front fee. There is no minimum loan requirement.
Cheapest Personal Loans – Banks
- ME Bank - rate is 13.99% with an up front fee of $100. Minimum loan is $5000. Extra repayments are permitted at no charge; there is also no fee if the loan is paid off early.
- Westpac - rate varies from 14.64% to 15.14% and there is no up front fee. Minimum loan amount is $4000.
- NAB - rate is 15.15% to 16% with no up front fee and a minimum loan requirement of $5000.
New Car Loans
Non-banks also dominate the new car loan area as well. Auto loans typically offer better rates than personal loans; this is because the vehicle serves as collateral for the loan. If the borrower fails to make repayments, the lender can repossess the auto. This makes it essential to shop in your price range and make sure your budget can accommodate regular monthly payments on the loan.
Car loans are generally offered for new cars only. If you are planning to purchase a used vehicle, a personal loan may be your only option.
Cheapest New Car Loans – Non-Banks
- Memberfirst Credit Union – rate is 7.99% with an up front fee of $150. Minimum loan requirement is $1000. Allows extra repayments with no fee and no penalty for early pay off.
- Memberfirst Credit Union - rate is 8% with an up front fee of $150. Loan minimum is $1000 and maximum is $100,000.
- Teachers Credit Union - rate is 8.24% with an up front fee of $100. Loan minimum is $10,000 and maximum is $80,000.
Cheapest New Car Loans – Banks
- Suncorp Bank – rate is 10.75% with an up front fee of $175. Minimum loan amount is $5000. Loan can be used to purchase vehicles five years old or less. The loan allows extra repayments, but if paid off in less than one year a $300 fee is charged.
- Bankwest - rate is 10.99% with an up front fee of $195. Minimum loan requirement is $1000.
- Bank SA - rate is 10.99% with an up front fee of $195. Minimum loan requirement is $3000 and maximum is $80,000.
Where to Shop for the Cheapest Auto and Personal Loans
Non-banks win out with lower rates and lower loan minimums. If you are in need of a personal or auto loan, be sure to shop the non-bank sector rather than automatically assuming banks will offer the cheapest loans. Be sure to consider, also, the features each lender offers when comparing quotes, especially terms regarding early loan repayment and associated fees.
Featured Personal Loans
| Personal Loan | Details | Min Interest Rate | Min Comparison Rate | Min Loan Amount | Min Loan Terms | Apply Fee | |
|---|---|---|---|---|---|---|---|
 ME Bank Personal Loan | A low rate personal loan from ME Bank with no application fee for a limited time. | 13.59% | 13.81% | $5000 | 1 year | $0 |   |
 Aussie Personal Loan | A smart way to consolidate your bills to save time and money so you can pay for your holiday, a wedding or renovate the house. | 13.90% | 14.84% | $3000 | 1 year | $199 | |
 Sugar Money Personal Loan | Fixed rate personal loan with flexible options to get you funds when you need it. | 13.99% | 15.00% | $3000 | 2 years | $250 | |
 bankmecu Personal Loan | A convenient and fast way to purchase a car or debt consolidation with affordable rates and fees. | 13.49% | 14.55% | $1000 | 1 year | $150 | |
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