Whether you need a new car, a new kitchen or even expensive dental work, a personal loan can be a quick and easy way to boost your finances. However, as with all financial decisions, doing your homework and comparing lenders is essential. This is because advertised rates can be deceiving, and many loans come with hidden fees and charges.
Currently, on Canstar’s personal loan comparison tables, there are big differences in interest rates and charges, from as low as 7.99% up to 24.99% p.a. And while some lenders don’t have establishment fees, others charge as much as $380.
That’s why it pays to shop around, and to start your search with Canstar’s latest 5-Star Outstanding Value Personal Loan Awards.
Canstar’s 5-Star Outstanding Value Personal loans
To help Kiwi consumers find the best value personal loans, each year Canstar’s expert research team rates and compares the major personal loan lenders in the market. For this year’s research, our team analysed over 55 loans from 12 providers:
- Car Loans – 33 rated
- Personal Loans – 24 rated
- Providers assessed: ANZ, ASB, Avanti, BNZ, Gem by Latitude, Harmoney, Heartland Bank, Lending People, MTF Finance, The C0-operative Bank, Unity and Westpac
On the findings of the research, the best lenders are awarded our 5-Star Outstanding Value rating. This year, four lenders take out our top awards, across the two loan categories:
- Harmoney NZ
- The Co-operative Bank
- Unity
- Westpac
Best personal loans: the analysis
When deciding our 5-Star Outstanding Value winners, our research team rates each loan primarily on its cost: 80% of a loan’s rating score is based on its associated fees and interest charges.
But in addition, the features and services associated with each loan are also rated. These cover the entire loan journey, from application to closure, and include:
- Pre-approvals
- Online application
- Loan terms and eligibility
- Online repayments and management of the loan facility
- Ability to make lump-sum repayments
- Fees and penalties
- Customer service
Only the best loans are then awarded Canstar’s ultimate 5-Star seal of approval:
5-Star Outstanding Value Personal Loans
| Lender | Loan | Credit Range |
 |
Unsecured Personal Loan | A1-A5 |
 |
Unsecured Personal Loan | A++ to A Unsecured Personal Loan | B+ to B |
 |
Unsecured Personal Loan | Green |
5-Star Outstanding Value Car Loans
| Lender | Loan | Credit Range |
|
Secured Car Loan | A1-A5 |
|
Unsecured Personal Loan | A++ to A Unsecured Personal Loan | B+ to B |
|
Secured Personal Loan | Green |
 |
Electric Vehicle Loan | n/a |
Secured/unsecured personal loans: what’s the difference?
Personal loans are either secured or unsecured.
Secured loans: when you use something you own, such as a home, car or boat, as security against the debt. If you’re unable to repay the personal loan, the lender may sell your asset to recover the debt. A car loan, for example, is usually secured against the car you are purchasing. Because there’s a physical asset to back up a secured loan, it tends to have a lower rate than if it were unsecured.
Unsecured loans: The lender agrees to lend you money without you making a promise of security. If you aren’t able to repay an unsecured personal loan, the lender might take you to court. As there is more risk involved with this type of loan, lenders usually charge higher interest rates. This means that although you can use an unsecured loan to buy a car, you might be able to get a better rate by using a secured loan instead.
Note: While standard car loans are secured against the automobiles they are used to purchase, some lenders will allow you to use an unsecured loan to purchase a vehicle. This is why The Cooperative Bank’s Unsecured Personal Loan | A++ to A rates highly in both our personal loan categories.
5-Star Outstanding Value Personal Loan Lenders
Overview of Harmoney’s personal loans:
- Long-term personal loans from $2000 to $70,000, over three, five or seven years
- Secured fixed rates from 9.89% p.a to 21.49% p.a. depending on the borrower’s credit rating
- Unsecured fixed rates from 9.99% p.a. to 24.99% p.a. depending on the borrower’s credit rating
- $150 establishment fee applies
- No monthly admin or early repayment fees
Overview of The Co-operative Bank’s personal loans:
- Unsecured personal loans from $3000 to $50,000, over six months to five years
- Loans over $50,000 also available
- Repayments either weekly, fortnightly or monthly
- Interest rates from 9.95% to 17.75% p.a. depending on the borrower’s credit rating
- $145 establishment fee applies
- No monthly admin or early repayment fees
Overview of Unity’s personal loans:
- Unsecured personal loans of up to $40,000, secured loans up to $60,000, over one to seven years
- Secured fixed rates from 9.90% p.a to 21.90% p.a. depending on the borrower’s credit rating
- Unsecured fixed rates from 12.90% p.a. to 24.90% p.a. depending on the borrower’s credit rating
- $200 establishment fee
- There are no monthly admin or early repayment fees
Overview of Westpac’s personal loans:
- Unsecured personal loans of up to $50,000, over six months to five years
- Westpac’s special EV Loan rate is 7.99% (for use towards purchasing a new or used electric/hybrid car, e-moped or e-bike
- Westpac’s standard interest rate for all other personal loans is 13.90% p.a.
- No establishment fee
- There are no monthly admin or early repayment fees
For more information, and to compare all the loan providers and products in Canstar’s extensive database, just hit the button below.
Compare personal loan providers for free with Canstar!
About the author of this page
Bruce Pitchers is the Content Manager at Canstar New Zealand. An experienced finance reporter, Bruce has three decades’ experience as a journalist and has worked for major media companies in Australia, the UK and New Zealand, including ACP, Are Media, Bauer Media Group, Fairfax, Pacific Magazines, News Corp and TVNZ.
Bruce started his career as an entertainment journalist before turning his pen to sport and fitness content, working for some of Australia’s leading sports magazines. Bruce then moved his focus to the world of finance and worked as a freelance writer and editor for The Australian Financial Review, the NZ Financial Markets Authority and major banks and investment companies on both sides of the Tasman.
In his role at Canstar, he has been a regular commentator in the NZ media, including on the Driven, Stuff and One Roof websites, the NZ Herald’s Cooking the Books podcast, Radio NZ, and Newstalk ZB.
Away from his desk at Canstar, Bruce spends many hours creating and editing puzzles for magazine and newspaper titles in the USA and Australasia, including Woman’s Day and New Idea. To that end, he is the co-author of the murder-mystery puzzle book 5 Minute Murder.
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