Cheap Loans NZ

Tracking down the best cheap loans doesn’t have to be hard work. Canstar rates over 55 unsecured and secured personal loans from 12 providers.

Not only do our comparison tables show current interest rates, fees and the cost of loans, they also feature Canstar’s expert ratings and our 5-Star personal loan award winners. To decide the winners, our research team judges each loan primarily on cost, but also reviews the features and services associated with each loan. These features cover the entire loan journey, from application to closure, and include:

• Pre-approvals
• Online application
• Loan terms and eligibility, including for the self-employed
• Online repayments and management of the loan facility
• Ability to make lump-sum repayments
• Fees and penalties
• Customer service

Only the best-rated loans are then awarded Canstar’s ultimate 5-Star seal of approval.

Cheap Loans NZ. In this article we cover:

• Top-rated unsecured loans
• How to save thousands on your personal loan
• Fees and charges
• Shop around

There are big differences in interest rates and charges on our comparison tables. Some lenders don’t have establishment fees, while others charge up to $380. And while interest rates start at 7.99%, they can be as high as 24.99%.

But here’s a rundown of the top unsecured loans, as rated by Canstar’s expert research team, plus an overview of the lowest rates currently on our database.

Canstar’s top-rated unsecured loans

The table below displays some of our referral partners’ unsecured personal loan products for a three-year loan of $10,000 in Auckland (some may have links to lenders’ websites). The products are sorted by Star Rating (highest to lowest) followed by company name (alphabetical). Use Canstar’s personal loan comparison selector to view a wider range of products on Canstar’s database. Canstar may earn a fee for referrals.

Lowest interest rate loans

The table below displays some of our referral partners’ unsecured personal loan products for a three-year loan of $10,000 in Auckland (some may have links to lenders’ websites). The products are sorted by interest rate (lowest to highest) followed by company name (alphabetical). Use Canstar’s personal loan comparison selector to view a wider range of products on Canstar’s database. Canstar may earn a fee for referrals.

How to save thousands on your personal loan: work on your credit score

Your credit score will have a big influence on the interest rate you’ll be able to secure. The lowest rates in our database are reserved for those with impeccable credit scores.

But whether you need a personal loan or not, it always pays to work on your credit score. Improving a credit score isn’t a quick or easy fix, however, it is possible. And taking back control of your personal finances will have other long-term benefits, ultimately helping you save for a brighter financial future.

Things you can do to improve your credit score, include:

1. Paying your bills on time
2. Not applying for new credit
3. Paying off existing loans and debts
4. Lowering the limit on your credit cards

For more information on improving your credit rating, check out our stories:

→ Related article: How to Check Your Credit Score And Why You Should

→ Related article: How to Improve Your Credit Rating: 7 Steps

Cheap personal loans: the fees and charges

Regardless of your credit score, you should always thoroughly read the small print of any loan agreement. There are many hidden fees and charges that can apply, and you need to be across all of them before you sign on the dotted line.

Things to look for include:

The per annum interest rate and loan period

Always check the exact interest rate that you’ll be paying. Most loan companies have calculators and are clear about their true interest rates. Per annum, or p.a., is the rate you want to concentrate on – which is the standard measure of interest rates.

Also, make sure that you know the exact term of your loan contract before you sign. Some repayment calculators on loan companies’ websites are not clear about the length of the loan period. A low monthly repayment sum might look attractive, but if you’re paying it for years and years, you’ll end up paying more for your loan. So check the term of the loan, not just the monthly repayments – the longer the term period the more you’re likely to pay.

Check out Canstar’s Personal Loan calculator

Fees and charges

• Establishment fees – some lenders don’t charge establishment fees. Others charge a fee depending on the size of your loan. Be aware of how much you’re paying as a proportion of your loan
• Brokerage fees – some loan websites belong to brokerages, not loan providers. For recommending your business to a loan provider, the brokerage will exact a fee, which, ultimately, you’ll pay for. So you could secure a cheaper loan by going straight to a lender and cutting out the middleman
• Administration fee – this is an ongoing fee charged over the life of your loan to cover the costs of administration. Some lenders don’t charge this fee, others charge up to $8.24 per month. Over a three-year loan, a $8.24 monthly fee adds up to an extra $296 on top of your repayments!
• Variation fee: to change the terms of your loan
• Full repayment fee: to pay off your loan early. This can run into big amounts if it covers the lender for any loss of interest

Best cheap personal loans:
shop around

Ultimately, the best way to ensure you get the most advantageous loan rate is to do your research, and to check out all the lenders in the market. If you’re willing to shop around and compare lenders, you’ll be able to secure the best possible loan rates and fees.

A great way to do this is to use Canstar’s free personal loan tool. It compares all the big banks and lenders across loan rates and fees in one easy-to-use tool. It also gives added information about Canstar’s expert research into the best loan providers and our prestigious Star Ratings and awards. To check out our loan comparison tool, just hit the big button below.

Compare personal loans 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.