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Unsecured personal loans

Get access to much-needed funds and enjoy more flexibility with an unsecured personal loan.

Gem Personal Loan - Unsecured

Gem Personal Loan - Unsecured


8.99 %p.a.


  • Fixed rates from 8.99% p.a. to 24.99% p.a.
  • Weekly, fortnightly or monthly repayment options
  • No early repayment fees

Gem Personal Loan - Unsecured

Check your loan rate in 3 minutes.

Unsecured Personal Loan from $2,000 to $70,000.

  • Loan term: 6 months to 7 years
  • Fees: Establishment fee of $240
  • Minimum loan amount: $2,000
  • Maximum loan amount: $70,000
  • Personalised rates based on your circumstances
  • Eligibility: Be 18+, a permanent NZ resident or hold a valid work visa allowing you to reside in New Zealand, employed and earning a stable income.
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1 - 3 of 3
Name Product Interest Rate (p.a.) Min. Loan Amount Max. Loan Amount Loan Term Monthly Service Fee Establishment Fee
FROM 6.99%
The Co-operative Bank Unsecured Personal Loan
6.99% - 19.99%
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.

An unsecured personal loan lets you borrow funds without using an asset as security. You can use this type of personal loan to make a large purchase, consolidate debt, pay for a holiday and many other reasons. Find out if this type of loan is right for you and compare available offers.

How do unsecured personal loans work?

Unsecured loans involve you receiving a certain amount of funds that you can use for any worthwhile purpose. You then pay the funds back with fees and interest.

You can generally use the loan how you choose. However, you may be asked for the purpose in your application. This will form part of the lender’s decision. When completing your application, you will also need to list how much you want to borrow and for how long.

Unsecured vs secured loans

Interest rates on unsecured loans are higher than they are for secured loans as the lender is taking on a higher risk. If your loan is secured, the lender can take the asset you have used as collateral to recoup the outstanding amount, but this isn’t possible with an unsecured loan. To safeguard themselves, lenders charge more interest so they have more to fall back on should you default.

Example: Financing a trip away

Horace is looking for a way to finance his travels over the break before he returns to work as a school teacher. He doesn't have enough money saved and is looking to take out an unsecured loan as he knows he can afford ongoing repayments on his current salary.

He compares his options and finds a loan he can afford to repay within a year. He does not want to run the risk of a longer repayment period in case he loses his job. He checks whether he is eligible and then applies. He soon finds out he has been approved and makes his way to the Canary Islands.

* This is a fictional, but realistic, example.

Pros and cons of unsecured personal loans

  • No asset needed for security. When taking out an unsecured loan, there is no need to supply an asset as security. If you’re purchasing an asset with your funds, you won’t have to risk it being repossessed and you won’t need to risk an asset you already own.
  • Flexible loan purpose. You can use the funds however you like. Once you are approved, the funds will be transferred to you and you can use them to consolidate debt, buy what you need or to even invest.
  • Easy application process. Applying for an unsecured personal loan is easy. You can apply for most loans online and submit the required documentation without leaving home. Depending on the lender, you may get a response in as little as 1 minute and have the money in your account on the same day.
  • Penalties for missed payments. Again, due to the lack of a security asset on an unsecured loan, the lender can charge you higher fees for late payments. They may even take legal action against you or take you to court if you default on the loan.
  • Higher interest rates because there’s no collateral offered. As there is a higher risk involved for the lender, the interest rates are generally higher on unsecured loans.
  • You may not be approved. Without security, a lender has to be satisfied that you can meet the terms of your loan agreement. You may not be approved if you have some issues on your credit report or do not manage your money well.

What should you look for when comparing?

  • Competitive rates. Some lenders provide a better interest rate than others. This should not be all you look for. With some lenders, the interest rate may be competitive but the total cost of the loan may be high. Interest rates for unsecured personal loans usually range from 7.5% to 25%.
  • Loan terms and repayment. Apart from the cost of the loan, you should also consider the length of your loan. You should also calculate how much your repayments will cost. This helps you determine whether you can afford the loan. It also tells you what you’re paying in terms of rates and fees over the life of the loan.
  • Loan amounts. Minimum and maximum loan amounts are set by lenders and usually vary between $1,000 and $100,000. It’s important to check if the amount you need is within the range offered by the lender.
  • Additional fees. These can include establishment, ongoing and administration fees and add to the overall cost of your loan. Some loans may waive them altogether, but in some cases, it may be unavoidable. When comparing the cost of the loan, consider both the fees and interest rates in your calculations.

Common mistakes to avoid

  • Lying about what you need the funds for. Always be upfront with your lender about why you are applying for the loan, whether it be for business purposes, to buy a new car or to consolidate debt.
  • Getting into too much debt. If you are taking out an unsecured loan to consolidate existing debt, you should be wary of getting yourself into financial trouble by increasing this debt.
  • Borrowing from an unlicensed lender. Always make sure to get an unsecured personal loan from a licensed lender. All providers must be licensed with the Financial Market Authority. There are also joint provisions made with the Australian Securities Investment Commission in New Zealand for companies that offer products in both countries. All lenders featured on this page are licensed.
  • Not checking fees and charges. Where possible, avoid excessive fees and charges. The best way to do this is to make sure you do your research, ask questions and compare. Many lenders have a loan calculator on their website that factors in establishment fees, ongoing fees and interest costs to get an idea of what the loan will cost you. Additional fees or a different interest rate may apply, so use these calculators as a guide only.

How to apply for an unsecured personal loan

If you think an unsecured personal loan is for you, use the comparison table to compare your options. After browsing through the table and finding a suitable loan, click the link to go to the lender’s website and start the application process.

To get an unsecured loan you will need to meet a range of criteria set by the lenders:

  • Be at least 18 years old.
  • Be a New Zealand citizen or permanent resident. Some lenders will accept applicants on a work visa.
  • Have a good credit rating and be able to provide proof that you can pay off the loan.
  • Able to provide copies of your payslips, bank account statements and other credit contracts.
  • You also need to provide proof of ID, such as your driver’s licence or passport.

Unsecured personal loan alternatives

Not sure if an unsecured personal loan is right for you? It pays to do your research. Here are some other personal loans types that you could consider.

Frequently asked questions

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