Canstar Awards NZ’s Best Value Personal Loans

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 6.99% up to a whopping 22.99% p.a. And while some lenders don’t have establishment fees, others charge over $200.

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 50 loans from 10 providers:

• Car Loans – 30 rated
• Personal Loans – 21 rated

On the findings of the research, the best lenders are awarded our 5-Star Outstanding Value rating. This year, five lenders take out our top award, across the two loan categories:

• Harmoney NZ
• Lending Crowd
• 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, 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 loans are then awarded Canstar’s ultimate 5-Star seal of approval:

5-Star Outstanding Value Car Loans

Lender	Loan/Credit Range
	Unsecured PL A1-A5
	Secured A1 5-Yr Fixed
	Unsecured A++ to A
	Orange Secured
	Electric Vehicle Loan

5-Star Outstanding Value Personal Loans

Lender	Loan/Credit Range
	Unsecured PL A1-A5
	Unsecured A++ to A
	Orange Unsecured

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.

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.

5-Star Outstanding Value Personal Loan Lenders

Overview of Harmoney’s loans:

• Long-term personal loans from $2000 to $70,000, for either three or five years
• Interest rates range from 7.99% p.a. to 22.99% p.a. depending on the borrower’s individual credit rating – the better your credit rating, the lower your interest rate
• All Harmoney’s loans are unsecured, meaning you don’t need to offer any collateral in order to be approved for a loan
• Harmoney has a one-off establishment fee of $150. The establishment fee is added to your approved loan amount and repaid on settlement of the loan
• There are no fees for early repayment

Overview of Lending Crowd’s loans:

• Unsecured and secured personal loans from $2000 to $200,000, for either two, three or five years
• Interest rates for unsecured loans range from 8.45% p.a. to 21.50% p.a. depending on the borrower’s individual credit rating
• Interest rates for secured loans range from 7.95% p.a. to 19.20% p.a. All secured loans must be secured with registered motor vehicles and/or property
• There are no fees for early repayment

Lending Crowd has a three-tier fee structure to establish a loan:

In addition, if a property is used as security for a loan, a $250 per property registration cost fee applies.

Overview of The Co-operative Bank’s loans:

• Unsecured personal loans from $3000 to $50,000, for six months to five years
• Loans over $50,000 also available
• Repayments either weekly, fortnightly or monthly
• Interest rates from 6.99%-17.75% p.a. depending on the borrower’s individual credit rating
• $155 application fee applies

Overview of Unity’s loans:

• Unsecured and secured loans from $2000 to $60,000, from one to seven years
• Interest rates for unsecured loans range from 12.9% p.a. to 24.9% p.a. depending on the borrower’s individual credit rating
• Interest rates for secured loans range from 9.9% p.a. to 22.9% p.a. All secured loans must be secured with registered motor vehicles and/or property
• There are no fees for early repayment
• $200 approval fee applies

Overview of Westpac’s loans:

• Unsecured personal loans of up to $50,000
• Westpac’s standard interest rate for all personal loans is 13.9%
• Westpac charges a $100 establishment fee
• Change your repayment amount, or pay it off early, with no additional charges or fees in internet banking

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

This report was written by Canstar’s Editor, Bruce Pitchers. Bruce began his career writing about pop culture, and spent a decade in sports journalism. More recently, he’s applied his editing and writing skills to the world of finance and property. Prior to Canstar, he worked as a freelancer, including for The Australian Financial Review, the NZ Financial Markets Authority, and for real estate companies on both sides of the Tasman.