Personal Loans Snapshot: February 2022

By Rhianna Dews · · 3 min read
Fact Checked
Personal Loans Snapshot: February 2022

As we kick off 2022 and reflect on how personal loan interest rates have been tracking over the past couple of months, we saw several discounted rates come out.

We also saw the ever-growing list of low rate loans available for environmentally friendly product purchases continue to grow, with the addition of a new Green Car Loan from MOVE Bank.

More broadly, over the past few months, there’s been a developing trend around the introduction of risk-based pricing among lenders - such as ING, who adopted the model on its single loan option.

Taking a look at the latest ABS Lending Indicators release , there was a 0.7% increase in fixed-term personal loan commitments (seasonally adjusted) in December 2021. Quite a drop when compared to November’s 4.5% increase in fixed-term personal loans from the month prior.

Additionally, the release reported a 0.6% decrease in new loan commitments for road vehicles , as well as a massive 17.4% increase in the value of new loan commitments for personal investment.

Personal loan interest rate changes:

Here’s what’s been happening lately in terms of personal loan interest rates and offer changes:

Interest rate cuts:

  • As the only lender to have made changes to its personal loan rates since our last update - Hume Bank slashed 100 basis points off its fixed Secured Personal Loan option, bringing it down to 5.95% p.a. (6.16% p.a. comparison rate*). It also cut 100 basis points off its fixed Unsecured Personal Loan, which now sits at 9.95% p.a. (10.17% p.a. comparison rate*).

Other changes:

  • Latitude has increased the application fee on both its secured and unsecured personal loans, up $49 to $299.

Ended offers:

  • Commonwealth Bank has removed its application fee waiver offer that had been available for students.

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 if you want a more competitive rate.

How about big-name lenders?

Over the past month, we’ve seen no major movements among big bank personal loan interest rates. It’s also worth noting that rates from the major banks tend to be much higher than most competitor lenders.

Currently, we see that the Commonwealth Bank’s Unsecured Variable Personal Loan interest rate sits at just 9.00% p.a., a significant jump compared to the lowest interest rate in the Mozo database of 3.99% p.a.

Variable rate big 4 personal loans:

At the moment, the lowest big bank variable rate personal loan interest rate in the Mozo database is the NAB Personal Loan (Variable, Unsecured), at 6.99% p.a. (7.91% p.a. comparison rate*).

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

Fixed rate big 4 personal loans:

In terms of fixed-rate personal loans, the lowest big bank fixed rate in the Mozo database is none other than NAB’s Personal Loan (Fixed, Unsecured), which offers a 3-year fixed rate of 6.99% p.a. (7.91% p.a. comparison rate*).

The highest fixed-rate big bank personal loan in the Mozo database once again belongs to the Commonwealth Bank, with its Unsecured Personal Loan (Fixed), which has a 3-year fixed rate of 9.00% p.a. (9.90% p.a. comparison rate*).

Personal loan rates of note in February:

  • Lowest variable rate unsecured personal loan: A tie between Community First Credit Union - Green Loan (up to 10 years, Variable, Unsecured) - 3.99% p.a. (4.99% p.a. comparison rate*) and Community First Credit Union - Home Improvement Loan (up to 10 years, Variable, Unsecured) - 3.99% p.a. (4.99% p.a. comparison rate*)
  • Lowest fixed rate unsecured personal loan: Alex Bank - Personal Loan (Unsecured, Fixed) - 4.99% p.a. (4.99% p.a. comparison rate*)
  • Lowest variable rate secured personal loan: Transport Mutual Credit Union - GreenRoad Hybrid & Electric Cars (Variable) - 4.74% p.a. (5.04% p.a. comparison rate*)
  • Lowest fixed rate secured personal loan: Credit Union SA - Online-only Special Fixed Rate Personal Loan (Secured) - 4.25% p.a. (4.73% p.a. comparison rate*)

On the hunt for more personal loan options? Then go take a look at our personal loans comparison tool, where you can start comparing personal loan options right away!

Written by: Rhianna Dews , Personal Loans writer, 1 February 2022.