Personal loans are a popular form of borrowing in New Zealand, providing individuals with access to funds for a range of purposes such as purchasing a car, consolidating debt or covering unexpected expenses. However, when it comes to borrowing money, the interest rate charged by lenders is an important consideration for borrowers, as it can significantly impact the total cost of the loan. In New Zealand, personal loan interest rates vary depending on a range of factors such as the loan amount, type of loan, and security offered. In this context, it is important for borrowers to shop around and compare personal loan rates and terms from various lenders to ensure they are getting the best deal possible.

Best Interest Rates For Personal Loans

To find the best interest rates for personal loans in New Zealand, borrowers should conduct thorough research and comparison among various lending institutions. Among banks, ASB stands out with competitive rates of 12.90% for both secured and unsecured personal loans, offering attractive options for borrowers.

Additionally, peer-to-peer lending platforms like Squirrel Money provide enticing rates starting from 8.95%, catering to those seeking alternative borrowing solutions. For individuals prioritizing personalized service and flexibility, building societies like Nelson Building Society offer secured personal loans with fixed interest rates of 16.00%, providing competitive options outside the traditional banking sector.

By exploring the diverse offerings from banks, peer-to-peer lending platforms, and building societies, borrowers can identify the best interest rates that align with their financial needs and goals, ensuring a cost-effective borrowing experience.

Personal Loan Interest Rates From Banks

In New Zealand, banks offer a diverse range of personal loan options with varying interest rates tailored to meet the needs of individual borrowers. For those seeking financial assistance, ANZ provides unsecured personal loans with an interest rate of 13.90%, while ASB offers competitive rates at 12.90% for both secured and unsecured loans.

Customers can also explore specialized packages like those offered by BNZ, with interest rates starting from 12.65%, or consider Co-operative Bank’s unsecured personal loans, ranging from 8.99% to 17.75%. Similarly, Heartland Bank provides attractive options starting from 8.95% for unsecured personal loans. These banks strive to offer flexible terms and competitive rates, enabling borrowers to access the funds they need for various purposes, whether it’s consolidating debt, covering unexpected expenses, or funding personal projects.

When considering personal loans from New Zealand banks, borrowers should carefully assess their financial situation and compare the interest rates and terms offered by different institutions. Kiwibank, for instance, presents unsecured personal loans at 18.95% and specialized packs with rates from 13.95% to accommodate varying customer needs. SBS Bank offers secured personal loans at 13.85%, while TSB Bank provides unsecured loans starting from 12.95% and overdraft facilities from 15.39%.

With Westpac, borrowers can explore unsecured personal loans with rates starting from 13.90% or specialized options tailored for graduates, with rates up to 14.00%. By evaluating these options, individuals can make informed decisions to secure the most suitable personal loan that aligns with their financial goals and circumstances.

Personal Loan Rates From Banks :

InstitutionProductPlanInterest Rate (%)
ANZPersonal LoanUnsecured13.90
ASBPersonal LoanSecured12.90
ASBPersonal LoanUnsecured12.90
ASBDebt ConsolidationUnsecured12.90
BNZCampus Pack AdvancedUnsecured12.65
BNZGraduate Pack AdvancedUnsecured12.65
Co-operative BankPersonal LoanUnsecured8.99 – 17.75
Heartland BankPersonal LoanUnsecured8.95 – 15.95
Heartland BankYouChoose OverdraftUnsecured10.00
KiwibankPersonal LoanUnsecured18.95
KiwibankPersonal Loan – Graduate packUnsecured13.95
KiwibankHome Loan CustomersUnsecured13.95
SBS BankPersonal loanSecured13.85
TSB BankPersonal loanUnsecuredfrom 12.95
TSB BankOverdraft facilitiesUnsecuredfrom 15.39
WestpacPersonal LoanUnsecuredfrom 13.90
WestpacGraduate LoanUnsecuredto 14.00

Personal Loan Interest Rates From Peer To Peer Lenders

In addition to traditional banks, New Zealanders have the option of exploring peer-to-peer lending platforms for personal loans, which offer competitive interest rates and alternative borrowing solutions. Squirrel Money, a prominent player in this space, provides various credit grades for unsecured personal loans, with interest rates ranging from 8.95% for Grade A to 15.95% for Grade D.

Additionally, Squirrel Money offers specialized homeowner’s loans with attractive rates starting from 7.75%, catering to individuals with different credit profiles and borrowing needs. These peer-to-peer lending platforms offer a transparent and efficient borrowing experience, connecting borrowers directly with investors and providing competitive rates that often rival those offered by traditional banks.

When considering peer-to-peer lending for personal loans in New Zealand, borrowers should evaluate the interest rates and terms offered by different platforms to find the most suitable option for their financial circumstances. Squirrel Money’s tiered credit grading system allows borrowers to access loans at competitive rates based on their creditworthiness, providing flexibility and transparency in the lending process. By exploring peer-to-peer lending platforms like Squirrel Money, individuals can potentially secure affordable personal loans while supporting a community-driven approach to borrowing and lending.

Personal Loan Rates From Peer To Peer Lenders :

InstitutionProductPlanInterest Rate (%)
Squirrel MoneyCredit Grade AUnsecured8.95
Squirrel MoneyCredit Grade BUnsecured11.45
Squirrel MoneyCredit Grade CUnsecured12.95
Squirrel MoneyCredit Grade DUnsecured15.95
Squirrel MoneyHomeowner’s loan; 1 YearUnsecured8.00
Squirrel MoneyHomeowner’s loan; 2 – 3 YearsUnsecured8.00
Squirrel MoneyHomeowner’s loan; 5 – 7 YearsUnsecured7.75

Personal Loan Interest Rates From Building Societies

Building societies in New Zealand offer an alternative avenue for individuals seeking personal loans, often providing personalized service and competitive interest rates. While options may be more limited compared to banks, Nelson Building Society stands out with its secured personal loan option, offering funds at a fixed interest rate of 16.00%. Building societies like Nelson prioritize customer relationships and may be more willing to accommodate individual financial situations, making them an appealing choice for borrowers seeking tailored lending solutions. By considering personal loans from building societies, individuals can explore diverse borrowing options beyond traditional banks, potentially accessing competitive rates and personalized service to meet their financial needs.

When evaluating personal loans from building societies in New Zealand, borrowers should carefully review the interest rates, terms, and eligibility criteria offered by each institution. While Nelson Building Society provides a secured personal loan with a fixed interest rate of 16.00%, it’s essential to assess whether this option aligns with your borrowing requirements and financial goals. Building societies may offer a more personalized approach to lending, which can be advantageous for borrowers seeking flexibility and attentive service. By exploring personal loan options from building societies, individuals can access competitive rates and potentially find a lending solution that best suits their unique circumstances.

Personal Loan Rates from Building Societies :

InstitutionProductPlanInterest Rate (%)
NelsonPersonal LoanSecured16.00

Personal Loan Rates In New Zealand

Kiwi’s in New Zealand have a variety of options when it comes to securing personal loans, ranging from traditional banks and peer-to-peer lending platforms to building societies. Each type of institution offers its own set of advantages, whether it’s the convenience and stability of banks, the competitive rates and community-focused approach of peer-to-peer lending platforms, or the personalized service and flexibility of building societies. By carefully considering their financial needs and comparing the interest rates, terms, and services offered by different lenders, borrowers can make informed decisions to secure the most suitable personal loan option.

Regardless of the chosen lender, borrowers should prioritize transparency, affordability, and responsible borrowing practices. It’s crucial to fully understand the terms and conditions of any personal loan agreement, including interest rates, fees, repayment schedules, and any potential consequences for defaulting on payments. With careful research and thoughtful consideration, individuals can navigate the borrowing landscape in New Zealand confidently, ensuring that their personal loan serves as a helpful financial tool to achieve their goals while maintaining financial stability.

Personal Loan Interest Rates FAQ :

What factors determine personal loan interest rates?

Personal loan interest rates can be influenced by factors such as the borrower’s credit score, income, employment history, loan amount, loan term, and the lender’s policies.

How can I get the best interest rate on a personal loan?

To secure the best interest rate on a personal loan, consider improving your credit score, shopping around and comparing rates from different lenders, opting for shorter loan terms, and providing collateral if possible.

Are personal loan interest rates fixed or variable?

Personal loan interest rates can be either fixed or variable. Fixed rates remain constant throughout the loan term, providing stability in repayment amounts. Variable rates can fluctuate with market conditions, potentially affecting monthly payments.

What is the difference between APR and interest rate?

The Annual Percentage Rate (APR) includes both the interest rate and any additional fees or charges associated with the loan, providing a more comprehensive measure of the loan’s cost compared to the interest rate alone.

Can I negotiate the interest rate on a personal loan?

While some lenders may offer flexibility in interest rates, negotiation depends on various factors such as your creditworthiness, relationship with the lender, and prevailing market conditions.

How do I calculate the total cost of borrowing?

To determine the total cost of borrowing, consider factors such as the interest rate, loan amount, loan term, and any additional fees or charges. Online loan calculators can help estimate monthly payments and total repayment amounts.

What should I do if I can’t afford the monthly payments?

If you’re unable to afford the monthly payments on a personal loan, consider contacting your lender to discuss potential options such as loan restructuring, refinancing, or adjusting the repayment schedule.

Note :

Remember to carefully review the terms and conditions of any personal loan agreement, including interest rates, fees, repayment terms, and potential penalties for early repayment or default.


The information provided regarding interest rates for personal loans in New Zealand is for informational purposes only and should not be considered financial advice. Interest rates and loan terms are subject to change at the discretion of the lending institutions mentioned. Borrowers are encouraged to conduct their own research and seek professional financial advice before making any borrowing decisions. Additionally, borrowers should carefully review the terms and conditions of any loan agreement, including interest rates, fees, repayment schedules, and potential risks associated with borrowing. The accuracy and currency of the information provided cannot be guaranteed, and users should verify the latest rates directly with the respective lending institutions.