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Low interest personal loans

Why pay more interest than you need to? Compare low rate personal loans now.

1 - 4 of 4
Name Product Interest Rate (p.a.) Min. Loan Amount Max. Loan Amount Loan Term Monthly Service Fee Establishment Fee
Harmoney Unsecured Personal Loan
6.99% - 19.99%
3, 5 or 7 years
Eligibility: Be an NZ resident/citizen and have a good credit score.
Apply for an unsecured personal loan up to $70,000 with no early repayment fees.
FROM 6.99%
The Co-operative Bank Unsecured Personal Loan
6.99% - 17.75%
6 months to 5 years
Eligibility: Be 18+, an NZ citizen/permanent resident, or have a valid work visa.
Floating-rate, unsecured personal loans from $3,000.
Lending Crowd Personal Loan
6.45% - 19.30%
2, 3 or 5 years
$350 - $650 depending on the amount borrowed
Eligibility: Be an NZ resident/citizen and have a good credit score.
Secured and unsecured personal loans from $2,000 to $200,000. 100% online with no paperwork or early repayment fees.
Nectar Unsecured Personal Loan
8.95% - 29.95%
6 months to 4 years
Eligibility: Must be 18+, an NZ citizen or permanent resident, have an income of $400 per week or more (after tax) and a stable credit history.
Unsecured loans from $1,000 with payouts made within one day of approval. Applications entirely online.

Compare up to 4 providers

Overall Representative Example

If you borrowed $42,000 over a 5-year term at 6.99% p.a., you would make 60 monthly payments of $834.42 and pay $50,065.20 overall, which includes interest of $8,065 and a lender fee of $150. The overall cost for comparison is 8.75% APRC representative.

You can use a personal loan to cover your next big purchase, consolidate debt or any other personal expense. However, depending on the interest rate and applicable fees, you could end up paying much more than you borrow, especially if you take out a loan over a long term. Low interest personal loans help to keep your ongoing costs down and your repayments manageable.

Read on to find out which lenders offer low interest personal loans and how you can compare your options.

What is a low interest personal loan?

A low interest personal loan is a loan that has a below-average interest rate. It works like any other personal loan: you borrow money and then pay it back with interest and fees. But because of their low interest rates, they tend to cost much less than the average personal loan.

To qualify for a low interest loan, you typically need to have a good to excellent credit score and a strong financial history. Many lenders advertise their interest rates as a range, and then assign a rate to you based on your individual circumstances.

If you don’t have a good credit score, you can look at loans secured with collateral. Alternatively, you can borrow from credit unions or peer-to-peer lenders, which tend to offer lower rates than other direct lenders.

Types of low interest rate personal loans

There are three main types of personal loans in the market to suit most borrowers’ needs, and some of these offer low rates. Here is a breakdown of the types of personal loans available:

  • Secured loans This type of loan comes with the most competitive interest rate because you use an asset such as a car or property as collateral against the loan. Secured loans have more restrictions than unsecured loans. For example, some lenders base the loan amount on the value of the asset you use as security.
  • Unsecured loans An unsecured personal loan does not require you to use an asset as security. Due to the increased amount of risk the lender is taking, interest rates for these loans are usually higher, but you can still find competitive rates if you compare your options. Unsecured loans are also more flexible when it comes to restrictions the lender places on the loan. For example, you are able to use the loan amount for whatever purchase you like, whether it’s for travel, medical expenses, school fees or other reason.
  • Debt consolidation loans Another reason people opt for low interest rate personal loans is to help them consolidate their debt. By moving all of your debt into one personal loan you may be able to save yourself money and better manage your repayments. These loans are unsecured and you can find low rates when you compare your options.

How to compare low interest rate personal loans

A personal loan with a low interest rate can help you keep your ongoing repayments down while giving you access to the funds you need. When you compare low interest rate loans, it’s important to look at the loan as a whole product package rather than just the interest rate. Consider the following features before you decide which loan to choose:

  • What type of loan do you need?
    Personal loans can be secured or unsecured and mainly come in the form of a lump sum payment. Alternatively, you can opt for a personal overdraft or line of credit. Determine what is best for your borrowing needs.
  • What fees apply?
    While a low interest rate can help you save, high ongoing fees can make a loan more expensive than it needs to be. Most loans have some form of establishment fee, which could be as much as $500. Weekly or monthly maintenance fees are applied to a loan by some lenders, plus you may have additional charges for direct debits. Compare your options using the overall cost of the loan with interest, fees and charges included.
  • How flexible are the loan repayments?
    Most lenders offer the option of making weekly, fortnightly or monthly repayments, but not all do. It is also important to check how easy it is to make repayments. Are they automatically deducted from your account on the due date and can you manage your account easily online?
  • Can you repay the loan early?
    Repaying a loan early or making extra lump sum payments means that you’ll be able to pay your loan off faster than the term set out in your loan agreement. Check if there is any limit on additional repayments (you may only be able to repay a certain amount per year) and if you will be charged a penalty for paying off the loan early.
  • What are the minimum and maximum loan terms?
    Are you able to borrow the amount you need and for the time period that will enable you to pay off the balance? Many lenders offer loans with terms of between six months and five years, but some lenders have a maximum of three years. It is possible to take out a loan for up to seven years, but keep in mind that the longer the loan term, the more interest you will pay.
  • What is the eligibility criteria?
    You generally need to be over the age of 18 and a permanent New Zealand resident or citizen, but some lenders issue loans for temporary residents on a work visa. Most lenders also set a minimum income which is usually a minimum of approximately $400 a week. No matter what your income is, you will need to prove that you can afford the loan repayments once you have paid your essential living costs and other debt repayments.
  • What extra features does the loan come with?
    These could be easy account management in the form of a mobile app or online account, or a redraw facility to access extra funds in the future.

    Pros and cons of a low interest loan


    • Savings. If you take a low-interest personal loan that you want to repay in a few years, you can end up saving a tidy sum in interest.
    • Simple process. You can usually apply online using any Internet-enabled device, and some lenders provide apps for mobile devices as well. Many lenders even let you complete the identification and document checking process online.
    • Repayment flexibility. You can find lenders that let you make payments that match with your pay schedule, be it weekly, fortnightly or monthly. Some will let you repay your loan early without charging any extra fees or penalties.


    • Prepayment penalties. Always check to see if your lender charges any prepayment penalties. These can put a dent in your plans if you plan to repay your loan ahead of time.
    • Scams. The online world is not devoid of scammers. Before you apply for a low interest loan online, find out if the lender you choose is legit.

    4 tips to help you get the lowest rate Low Interest Personal Loan Graph

    1. Check your credit score. Your credit score tells your lender what kind of a borrower you are. If you have a good credit score, you’re a low-risk borrower. If you have a poor credit score, you’re a high-risk borrower.
    2. Use collateral. If you offer security for the loan, you will usually get lower interest rates and fees on your loan. This is because the collateral makes the loan less risky for the lender.
    3. Always compare. Don’t settle for the first loan you find. You could potentially find something cheaper if you spend some time comparing loans and loan features.
    4. Negotiate with your lender. Your lender may offer you a particular rate based on your financials, but you could get a lower rate if you negotiate. This is where comparing loans comes in handy. You could point to a competitor’s rate and let your lender know that you find the competitor’s rate more compelling. They could offer a better rate to retain you.

    Can I get a low interest loan if I have bad credit?

    If you have a poor credit history, the lender will view your application as high risk. This will make it difficult to get a low interest rate. By charging a higher interest rate, lenders attempt to offset the risk of lending to high-risk borrowers.

    That does not mean you will never be approved for a low rate loan. You can improve your chances if you do the following:

    • Secure the loan. If you have bad credit, you can offer an asset as security. This could be real estate, a vehicle or even valuable art or jewellery. With security, you could potentially lower your rate and increase your chances of approval.
    • Get a guarantor. A guarantor is someone who offers to pay the debt on your behalf if you fail to do so yourself. Someone with a good credit history, and who has real estate assets, could reduce your rate. You should ensure you are confident you can meet your repayments before asking someone to act as a guarantor.
    • Improve your credit rating. A bad credit rating is not forever. There are steps that you can take to improve your credit rating before applying for a personal loan.

    How to apply for a low interest personal loan

    If you would like to apply for a personal loan with a low interest rate, you can compare your options using the table above. Once you have found a loan you want to apply for click on “Go to Site” to apply.

    Eligibility criteria will differ between loans, but generally, you will need to meet the following requirements:

    • Be over the age of 18
    • Have a good credit rating
    • Be a New Zealand citizen or permanent New Zealand resident
    • Agree to a credit check
    • Have a regular income

    The information you are required to provide will be different depending on the type of loan you apply for, but you will most likely need to provide the following:

    • Personal details including your name, contact information and proof of identification
    • Name and contact details of your employer
    • Details of your employment, including income amount and how you are employed
    • Financial details including assets, liabilities and any other active credit accounts

    Online applications can often be approved in less than an hour or on the same day you apply if all necessary information and documents have been provided. Some lenders may take a little longer, but in most cases, if you are approved, you will have access to your funds within 48 hours or less.

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