Continue your simulation by reading the MoneyMe interest rates alongside the comparison rate that sits beside every advertised figure.
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interest rate of per month
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Choose another amountMoneyMe publishes an interest rate range and a comparison rate range, which can differ by more than a point. The difference comes from its establishment fee and monthly fee. This guide explains how the comparison rate is built, why small loans can cost more than the benchmark suggests and how to calculate your own effective rate for any offer.
Direct answer: MoneyMe listed interest rates of about 6.24% to 26.10% and comparison rates of about 6.95% to 27.49% at the time of writing. The comparison rate adds standard fees on a benchmark loan. On a smaller loan, such as A$10,000 over three years, the fees push the effective yearly cost several points above the interest rate.
Australian law requires lenders to show a comparison rate whenever they advertise an interest rate, calculated on a standard amount and term. For personal loans the benchmark is typically A$30,000 over five years. Because fees are fixed amounts, they matter more on smaller and shorter loans and less on larger and longer ones.
A frequent misunderstanding is that the comparison rate is the rate you will pay. It is a tool for comparing lenders on equal terms, not a personal quote. Your own effective rate depends on your amount, your term and whether your establishment fee is waived, so it can sit above or below the advertised comparison figure.
Ahead you will see how fees enter the comparison rate, a table for a small loan, the benchmark check, what drives your personalised rate, how to compare MoneyMe with a bank, a worked example and frequent questions. Keep the amount and term you are considering, and any quote you have already received, in front of you as you read.
How fees enter the comparison rate
- Establishment fee of A$395 for loans up to A$15,000, A$495 above, waived for some excellent profiles.
- Monthly fee of A$10 on all personal loans.
- Both are added to interest to calculate the comparison rate.
- The calculation uses a benchmark amount and term.
A small loan: A$10,000 over three years
The table finances the A$395 establishment fee, adds the A$10 monthly fee and calculates the effective yearly cost for four interest rates.
| Interest rate | Repayment on A$10,395 | With A$10 monthly fee | Effective yearly cost |
|---|---|---|---|
| 6.24% | about A$317 | about A$327 | about 11.0% |
| 12% | about A$345 | about A$355 | about 16.8% |
| 18% | about A$376 | about A$386 | about 22.8% |
| 26.10% | about A$419 | about A$429 | about 30.9% |
On this small loan, fees add roughly five points to the yearly cost at every rate. That is far more than the gap between the advertised interest and comparison rates, because the benchmark loan is three times larger and two years longer.
The benchmark check
Running the same calculation for A$30,000 over five years with a A$495 fee gives an effective cost of about 27.5% at the top interest rate, matching the published top comparison rate. At the lowest rate, the result is about 7.6% with the fee, while the published 6.95% appears to assume the fee waiver available to excellent profiles.
What drives your personalised rate
- Credit history and repayment behaviour.
- Income stability and the size of your budget surplus.
- Existing credit, including buy now pay later plans.
- Loan amount, term and purpose.
Comparing MoneyMe with a bank
A bank loan with a slightly higher interest rate but no monthly fee may be cheaper on a small loan. Compare both by calculating the effective yearly cost on your exact amount and term, or by comparing the total repaid. The comparison rate is a helpful starting point, but only your own numbers settle the question.
Worked example: Jordan in Hobart
Jordan needs A$10,000 for dental work and is offered 12% by MoneyMe. The effective cost is about 16.8% over three years. His credit union offers 13.5% with a A$250 fee and no monthly charge, which works out at about 15.2%. Despite the higher headline rate, the credit union is cheaper for his small loan.
Small loans: when fees dominate
On A$5,000 over two years, the A$395 establishment fee and A$240 in monthly fees together equal more than twelve percent of the amount borrowed, before any interest. In that situation, even a low interest rate produces a high effective cost. Small, short loans are where comparing total cost matters most, and where fee-free alternatives often win.
| Loan | Fees as share of amount | Effect |
|---|---|---|
| A$5,000 over 2 years | About 12.7% | Fees dominate the cost |
| A$10,000 over 3 years | About 7.5% | Fees add several points |
| A$30,000 over 5 years | About 3.7% | Fees add around one point |
Fee waivers and how to qualify
MoneyMe has said that some applicants with excellent credit history may pay no establishment fee. A clean repayment record, low card utilisation and few recent enquiries improve your chances. On a small loan, a waiver can lower the effective cost by several points, so it is worth asking whether you qualify before accepting an offer.
Rate type
Comparison sites have described MoneyMe’s rates differently, sometimes as variable. If your contract shows a variable rate, stress test the repayment at one or two points higher. If it is fixed, the repayment stays the same, and your main decision is about amount and term.
The formula behind the numbers
Repayments use P·r/(1−(1+r)^−n). The effective yearly cost is the rate that equates the cash received, A$10,000, with the stream of repayments plus monthly fees. A spreadsheet RATE function calculates it from the number of months, the total monthly outgoing and the amount received.
Jordan’s choice of the credit union is a reminder that the lender with the lowest headline rate is not always the cheapest once fees are included, especially on modest amounts.
A three-question check for any MoneyMe offer
- What is the effective cost on my exact amount and term?
- Would a fee waiver apply to my profile?
- Does a fee-free lender offer a lower total repaid?
Answering these three questions takes a few minutes and turns the comparison rate from an advertising figure into a practical decision tool.
Summary: two numbers, one decision
The interest rate drives the repayment, the comparison rate allows quick comparisons and your own effective rate shows the true cost.
- Fees make small loans relatively expensive.
- The comparison rate uses a benchmark loan.
- Fee waivers lower the effective cost.
- Compare total repaid on your exact loan.
- A higher rate without fees can be cheaper.
Frequently asked questions
Why is my effective rate higher than the comparison rate?
Your loan is probably smaller or shorter than the benchmark, so fixed fees weigh more.
Can fees be waived?
MoneyMe has said some excellent credit profiles may pay no establishment fee.
Are MoneyMe rates fixed or variable?
Comparison sites have listed them differently, so check the product details in your offer.
Does a longer term lower the effective rate?
It spreads the establishment fee further, but monthly fees and interest keep adding up.
Can I calculate the effective rate on my phone?
Yes, most spreadsheet apps include a RATE function that works with the months, monthly outgoing and amount received.
Is the monthly fee charged after early repayment?
No, once the loan is repaid there are no further monthly fees, which is another reason to repay early when possible.
Conclusion
Reading MoneyMe interest rates together with the comparison rate, and then calculating your own effective cost, shows what a loan really costs. Use the method for every offer, compare total repaid and confirm current rates and fees on the official MoneyMe website before you accept.