Understanding our personal loan interest rates

A personal loan allows you to borrow a set amount of money to pay for something or consolidate debts. You have to repay your loan over an agreed term, including any interest or fees. 

Your needs, goals and plans are different to everyone else’s. That’s why it’s a good idea to understand our interest rates and your options. You can choose either a fixed or variable interest rate.

If you want to pay off your personal loan faster, consider making additional payments on top of your minimum repayments, increasing your repayment amounts or your repayment frequency.

How to decide between a fixed or variable rate personal loan

It’s an important decision to decide the right interest rate. It may feel overwhelming and confusing. But we’re here to help.

The best way to start, is to think about your current circumstances and the future life of your loan. 

How much do you want to borrow and what can you afford?

NAB’s borrowing power calculator and our personal loan repayment calculator can help you make an informed decision.

Fixed rate personal loans:

Features and benefits

You know where you stand with a fixed rate loan. Your minimum repayments are fixed and won’t change.

This means you:

  • have more certainty
  • can budget better
  • will retain the same rate during your loan term.

Variable rate personal loans:

Features and benefits

If you have a variable interest rate, your repayments will change if interest rates change.

This means you:

  • can pay less if interest rates fall
  • will pay more if interest rates rise
  • can enjoy access to a redraw facility if you make extra repayments. 

How we work out your interest rate

We offer a range of rates on our personal loans. The interest rate you are offered is based on your personal circumstances.

We decide your rate based on:

  • your banking history with NAB
  • information you provide in your application, including income, assets, debts and expenses
  • your credit history report including your credit score.

After you submit your application, we’ll give you an indicative interest rate if you’re conditionally approved. This is subject to verification of the information you give us in your application.

Once we’ve verified your information, we’ll give you the loan documentation setting out your interest rate and other important information. Keep in mind that the rate shown in the loan documentation is subject to change and may be different on the day of settlement.

How to manage your credit score

Your credit score can be impacted by the decisions you make, but there a few simple ways for you to improve it. Watch the video to find out more. Once this is done I think it's ready to go to the next stage.

View How to improve your credit score transcript (DOC, 25KB), opens in new window

How to improve your credit history

Ways to boost your creditworthiness:

  • pay your credit card, bills and loans on time
  • don’t overdraw your transaction accounts
  • don’t apply for multiple new credit cards or loans at the same time
  • build a relationship with your bank.

NAB Personal Loan interest rates and fees

  Interest rate Comparison rate
Variable rate loan
Interest rate
From 6.99% p.a. to 20.49% p.a.
Comparison rate
From 8.05% p.a. to 21.49% p.a.
Fixed rate loan
Interest rate
From 6.99% p.a. to 20.49% p.a.
Comparison rate
From 8.05% p.a. to 21.49% p.a.
Personal loans interest rates
Application fee
One-off payment when loan is established
Monthly fee $10
Exit fee $0
Late payment fee $0

Personal loan interest rates explained

Before you apply, let’s talk about the different types of interest rates and what they mean.

  • An interest rate is the amount of interest you’ll pay, as a percentage of the amount you have borrowed.

  • A variable interest rate can go up or down. It may not stay the same and can vary over the course of your loan term.

  • A fixed interest rate is an unchanging rate that remains the same throughout all or part of your loan term.

  • A comparison rate indicates the true, overall cost of your loan over your loan term. It is a single figure loan cost that includes the interest rate and most fees.

Personal loan terms explained

Before you decide on a personal loan, it’s always a good idea to compare all of the features. There are many things to consider when choosing a personal loan. Let’s get started.

  • Is the loan term right for you?

    Shorter loan terms often mean less interest paid over the life of your loan. Longer loan terms typically mean lower repayments; however, you may pay more interest overall.

  • Make sure the loan you choose allows you to use it for what you want.

    The majority of your loan will need to be approved for a specific use such as buying a car, consolidating debt or for home renovations.

  • This is a one-off payment you’re charged when the loan is established.

  • You need to consider that most banks charge fees to lend you money.

    Typical fees may include a monthly service fee, late payment, early repayment or default fee.

    The good news is that NAB doesn’t charge late payment, early repayment or default fees on our personal loans.

    The only fees we charge are an application and monthly service fee.

  • When comparing personal loans, consider that some banks will charge you a fee if you make extra repayments or pay off your loan early.

    Paying off your loan early is something to be proud of, so we won’t surprise you with any exit fees.

  • Redraw is a feature available on NAB’s Variable Rate Personal Loans. If you’re ahead of your payments, you can redraw money from your loan account and transfer it into your transaction account.

    You can also make additional loan payments to reduce the interest you pay and potentially pay your loan off sooner.

Personal loan calculators

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Terms and Conditions

Terms and conditions and fees and charges apply. Approval and loan amount are subject to our credit assessment criteria. Information, including fees are subject to change. See our general terms for personal loans, personal banking fees and charges and indicator rates for other personal lending.

Target Market Determinations for these products are available at nab.com.au/TMD.