Westpac has introduced personalised rates for unsecured personal loans, offering borrowers a rate based on their credit score and the loan details.

Joel Larson, Westpac’s head of consumer finance – strategy, product and pricing, said personalised rates ranged from 7.99 per cent to 17.49 per cent, allowing customers to reduce the rate they pay by up to 3 per cent.

The bank says customers who fill in a questionnaire to get a personalised rate will not have their credit score affected, as a request for a personalised rate is not treated as a loan application.

“As part of your request to provide you with a personalised rate, we will send information you provide to us to Equifax. We do that so we can obtain credit information, including your credit score, and provide you with a personalised rate.

“This process will not affect your credit score. If you do submit an application, a credit check will be carried out by Equifax and recorded on your credit report.”

Personalised rates, or pricing for risk, has been part of the consumer lending market for a decade. It was introduced by fintechs using credit scores and other data as the basis for automated loan approvals.

However, it has not been widely adopted.