Personal Loans
Get the funds you need quickly with our flexible personal loan options.
What is a Personal Loan?
A personal loan is a financial product that allows individuals to borrow a set amount to meet current financial obligations. In return, individuals must repay the borrowed amount and the interest component over an agreed repayment time frame.
Borrowers can use personal loans to cater to versatile big expenses, including car purchases, debt consolidation, vacations, home renovation, higher studies, weddings, etc. Considering the flexible end use, it is worth checking whether you can or cannot take out a personal loan.
Such loans are typically categorised as secured and unsecured, i.e., the lender can provide
funds without seeking collateral or security. However, a borrower can secure a personal loan at static or variable rates as per the preferred choice. Several factors influence personal loan interest rates, including credit score and financial stability.
Different Types of Personal Loans
You can take out personal loans from mainstream Australian banks, lenders,
and otherfinancial institutions that offer personal loans.
the one that best fits your financial requirements.
Variable vs Fixed Rate
Personal Loans
The repayment schedule is predetermined with a fixed interest rate as opposed to a variable one. This implies that you are fully aware of the monthly repayment amount taken from your bank account. With a variable interest rate, your payments are subject to interest rates and RBA Cash Rate changes. You will have to make larger payments as interest rates increase and vice versa. Typically, there are no early exit fees for loans with variable interest rates.
Secured
Personal Loan
This type of loan is secured by an asset or collateral. Cars are frequently used as an asset to secure a personal loan. The lender may seize and sell the asset if the borrower fails to repay the amount within the specified deadline. In general, secured loans have lower interest rates than unsecured ones.
Unsecured
Personal Loan
An unsecured loan is not secured by an asset. Perhaps a guarantor is needed. Additionally, lenders may go to court to recover their money from you if you are in default.
Loan with a
Guarantor
If you can’t repay the loan, a friend or relative will step in. Because the risk to the lender is smaller, the interest rate on a personal loan with a guarantor is somewhat lower. Make sure that the guarantor is aware of the terms of the agreement.
Debt Consolidation
Loan
Commonly referred to as refinancing, it combines several debts into a single loan. Repayments may be simpler to handle, but there is a chance that the associate interest rate and charges will be higher. Additionally, it could be alluring to start increasing your expenditure, so take care to avoid doing so in the long run.
Choosing the Right Lending Partner
is crucial for your Financial Success.
During this phase we try to understand your financial
requirements as well as your short and long term
financial goals.
