Australia’s Best Personal Loans
Don’t be fooled. Personal Loans are not all made the same.
As finance brokers, we get to see the best and worst Personal Loan products on the market. We would love to help you find a Personal Loan that ticks all of your boxes. And, we would love to make it as easy as possible.
So, what actually makes a great Personal Loan and how do you get one. Let’s explore your options.
What Is A Personal Loan?
A Personal Loan is a loan provided for personal use. That is, not for business use. It comes under the Consumer Credit Laws rather than the Commercial (business) Credit Laws.
You can use a Personal Loan for a wide range of personal uses. You can purchase a car, go on a holiday, pay for your wedding, or even consolidate other personal loans. As long as the use is personal, and of course legal, a Personal Loan could be the loan for you.
How Does A Personal Loan Work?
When you take out a Personal Loan you promise to pay it back over time. The normal length of time offered is between 1 and 7 years. You pay back the principal amount plus interest. The principal amount pays back the actual loan and the interest portion covers some of the Banks costs to lend you money. It also provides the Bank some profit for lending you the money.
What Are The Different Types of Personal Loans Available?
The two main types of Personal Loans are secured and unsecured.
A secured loan is a loan provided by a Bank where they take what you buy as security in case you do not pay the loan back. For example, if you buy a car, they might take the car as security. If you do not pay the loan back, they could sell your car to recoup their funds.
An unsecured loan is where the Bank does not take anything as security. If you stop paying the loan back, they do not have anything (e.g. your car) held as security. If you get a Personal Loan for a holiday, for example, the loan will likely be unsecured. The Bank can not take your holiday as security.
The main difference between a secured and unsecured Personal Loan is a secured loan is normally cheaper. The interest rates are often lower for a secured rate as the Bank feels safe they have security. Unsecured loan interest rates will always be higher and vary between the Banks.
Are There Application Fees For A Personal Loan?
Most Banks do have application fees for their Personal Loans. The amount varies between lenders and your LoanBay Lending Specialist will let you know what the different fees are. This fee is normally once off. You can either pay it upfront or finance it into the loan amount.
Can I Pay Out My Loan Early?
Some Personal Loans can restrict you from paying it off early. Others let you pay as much as you want, without any penalty. We can let you know which loans are better when we speak.
Why Would I Use LoanBay To Help Me Find A Personal Loan?
It’s what we do. We help people find the best loans and we make the application process as easy as possible. If you shop around to different Banks yourself, be careful. Every time you apply for credit, an inquiry is placed on your credit report. If you have lots of inquiries on your credit report in a short amount of time, it is not good. This makes it look like you have been declined everywhere and other Banks get nervous. Most Banks won’t want to lend you money if you have what they call a busy credit report.
By working with a LoanBay Lending Specialist we will make sure we find the right product for you before doing anything else. Then we will use the Banks calculators to make sure the loan is likely to be approved if we submit an application. Only then will we submit your application.
Call a LoanBay Lending Specialist to discuss your Personal Loan needs.