Plan a lavish wedding, foreign trip, or pursue higher education with UM Oceania’s personal loan!
With a secured loan you provide an asset, such as your car, as security for the loan. If you don't pay the loan back on time, the lender can repossess your asset and sell it. With an unsecured loan, you don't have to provide an asset as security. But the interest rate will be higher, and you may need a loan guarantor. If you fail to pay back the loan, the lender can still take you to court to get back the money you borrowed.
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Personal Loans Top Banks
- Alex Bank Personal Loans
- Macquarie Group Limited Personal Loans
- Latitude Financial Services Personal Loans
- Bank of Queensland Personal Loans
- Now Finance Personal Loans
- Wisr Personal Loans
- SocietyOne Personal Loans
- Plenti Personal Loans
- MoneyPlace Personal Loans
- Australian Military Bank Ltd Personal Loans
- Auswide Bank Personal Loans
- Bank Australia Personal Loans
- Bankwest Personal Loans
- Bcu Personal Loans
- Bendigo Bank Personal Loans
- Beyond Bank Australia Personal Loans
- Citi Australia Personal Loans
- Commonwealth Bank Personal Loans
- Credit Union SA Personal Loans
- Defence Bank Personal Loans
- Firefighters Mutual Bank Personal Loans
- Great Southern Bank Personal Loans
- Health Professionals Bank Personal Loans
- Hume Bank Personal Loans
- IMB Bank Personal Loans
- ING Australia Personal Loans
- Newcastle Permanent Building Society Personal Loans
- P&N Bank Personal Loans
- People's Choice Credit Union Personal Loans
- QBANK Personal Loans
- St.George Bank Personal Loans
- Westpac Banking Corporation Personal Loans
- UniBank Personal Loans
- Teachers Mutual Bank Personal Loans
- Adelaide Bank Personal Loans
- BankSA Personal Loans
- Pepper Money Personal Loans
- Bankfirst Personal Loans
- Liberty Financial Pvt Ltd Personal Loans
- Heritage Bank Limited Personal Loans
- Bank of Melbourne Personal Loans
Personal Loans Bank Offerings
About Personal Loan
When you are going through financial turmoil and call for instant access to the corpus, personal loans can be a prominent instrument to rope you from a financial crisis. With surging living costs in Australia, citizens are running low on savings, making a personal loan the best course of action to fund financial goals.
Availing of a personal loan with opportune terms in Australia is just a snap away, especially when you have a stable financial history. It can be a better choice than taking credits from near and dear ones or credit card debt, as personal loan interest rates in Australia are typically lower. Making an informed decision by comparing lenders to hunt down the lowest personal loan interest rates and correlated charges would save thousands of dollars.
The best part about securing a personal loan is it comes with flexible end-use. The lenders aren't concerned about the end use; they only focus on the repayment. Flick through this blog to become cognizant of the nuts and bolts of a personal loan, including eligibility criteria, interest rates, why you should compare lenders, things to consider, required documents and much more.
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 other financial institutions that offer personal loans. Additionally, you can expect the below-depicted types of personal loans, so pick 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 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.
- 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.
- 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.
- Line of Credit (LOC): A line of Credit (LOC) is an adaptable loan with a set credit limit that can be drawn against as needed. It may be paid back quickly or gradually. From the minute money is borrowed, interest is charged.
- 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. Contact the National Debt Helpline at 1800 007 007 for free help on how to get out of debt if your bills are out of control.
Eligibility for Personal Loans
A lender determines personal loan eligibility based on certain things:
- The borrower's income is crucial to determine whether the borrower earns enough to repay the monthly payments on time. Low-income individuals can apply for small personal loans that fit their budget perfectly.
- Existing debt and credit card payments: While determining the personal loan eligibility criteria lender considers the credit card limit along with existing debt. It helps to have a clear idea about how much repayment a borrower can manage. Further, it helps determine the personal loan amount per the monthly expenses.
- Pensioner: Retired individuals and pensioners can rely on dedicated personal loans for pensioners to cope with their financial obligations.
- Individuals Receiving Centrelink payments: Individuals who receive Centrelink payments can apply for these loans, but they must ensure that they don't default on repayments.
- Credit Score: Lenders consider credit scores to assess borrowers' applications. Individuals falling in the successful category will end up unlocking lower personal loan interest rates. On the other hand, if an individual gets negative marks from the lender, he might get approval for a personal loan but at higher interest rates.
If an individual fails to meet the minimum eligibility criteria set by the bank and financial institutions, he can count on applying for a loan with a guarantor. Having a guarantor will assure the lender that you will meet your obligation and make successful repayments.
What are the Benefits of a Personal Loan?
When you secure a personal loan, expect the following benefits:
Quick Loan Approval
The major Australian banks provide quick approval on personal loan applications. In most cases, the application is processed within 24 hours.
- Compared to other finance products, which take 3 to 4 weeks to process, a personal loan application is processed in much less time. Thus, it is considered one of the best credit instruments to meet urgent cash requirements.
- Borrowers with stable financial history and a good CIBIL Score get quick loan approval at the cheapest personal loan interest rates.
No Need for Collateral
The availability of unsecured personal loans makes the entire process hassle-free. Unlike other loans, borrowers don't have to pledge any asset or provide collateral to avail of a personal loan. However, lenders find unsecured loans riskier; to mitigate the same, interest rates can be higher than secured personal loans.
Be it for an asset purchase, a vacation or a home renovation, a personal loan comes with flexible end-use. It offers borrowers the versatility to fulfil urgent cash requirements for multiple purposes. The key reason that makes a personal loan more favourable for the borrower is the end-use flexibility.
Builds CIBIL Score
An individual with a low CIBIL score can count on a personal loan with bad credit to build a better score and enhance financial credibility. Secure a loan of a smaller amount and make timely payments to improve your overall credit score. However, ensure that you secure an amount that perfectly fits your budget and doesn't end up adding to the burden.
Minimal Documentation and Easy Availability
One of the foremost advantages of online personal loans is minimal documentation. With the infusion of technology in the finance sector, securing a personal loan has become easier than ever. There is no need to make an in-person visit and carry documents to process your loan application. All you have to do is submit basic personal loan documents such as identity proof, income proof, bank account statements, assets and liabilities. Determine the current personal loan rates, choose the product you can afford, and easily access the required funds within the minimum possible time.
Personal Loan Interest Rates in Australia
Since the beginning of 2022, the RBA cash rate has upsurged for consecutive months. The key reason behind the hiked cash rate is inflation. As a result, loan interest rates have emerged highest for the decade.
Lenders have already increased interest rates on all financial products after the surge in the cash rate. Borrowers who have secured a personal loan at variable interest rates in the past five years will face major consequences. However, borrowers who have already locked in their interest rates throughout repayment have played safe.
It's not all doom and gloom, though. Major Australian banks' personal loan interest rates range from 6.25% to 10.15%. To secure the best personal loan interest rates, it is recommended to compare various options. It will help you get the most affordable personal loan offer that best fits your requirements.
Things to Know about Personal Loan
Now that you are familiar with personal loan benefits, here is a list of several things that cater to choosing the best personal loans available in the Australian financial market.
- Make certain that you apply for the amount that fits within your repayment capability
- Read the fine print carefully before signing the loan document
- Get a clear idea about the associated fees, including prepayments and foreclosure
- Compare personal loan interest rates from major banks and fintech companies to secure the best possible deal
Why is Personal Loans Comparison Important?
It would be better if you take out time to explore and compare lenders before applying for a personal loan. It will help you to save thousands of dollars.
Get a Better Idea of Current Personal Loan Rates
The finance sector is, without a doubt, quite competitive. Numerous lenders provide lower personal loan rates and little to no related loan fees to attract new clients and keep existing ones. You risk missing out on the greatest bargain if you don't take enough time to contact several lenders about available financing options and compare the predicted total cost of the loan structure.
Factor in the Correlated Fees in the Computation
If you don't include the many associated fees, some lenders levy hidden fees for loan offers that are discounted; these offers appear to be fantastic otherwise. Precomputed interest, documentation costs, cost of ownership, prepayment penalties, refinancing and exit fees are a few examples of hidden loan expenses that can be expensive and have a big impact on the overall cost of the loan.
However, when you shop for a loan, you can meet in person with each potential lender to learn more about their product offerings. This will allow you to inquire about the conditions of the loans you intend to obtain and the fees you expect to pay.
You can estimate the loan's actual cost more accurately by being aware of the accompanying costs. This will make it easier for you to compare offers and find the true financing option that offers the greatest value.
Crack a Better Deal By Choosing the Best Personal Loan
To entice you to pick them over their rivals, lenders may offer their loan products at cheaper rates if they learn that you have been looking around for personal loans from their rivals. To convince you to sign up as a customer, certain businesses may offer benefits like no down payment and yearly fees.
If you have a decent credit score and a steady source of income, you are in a better position to bargain for better terms due to the competition among lenders.
Explore Various Personal Loan Options
You can compare loans to find ones that may be better for your demands and financial situation than the ones you had planned to get through loan shopping.
For example, you want to secure a business loan but need help being accepted due to your limited resources. You happen to come across a lender offering to grant your business financing request but at higher interest rates. You keep looking for better offers since you're only convinced once you eventually find a microloan. You can borrow $20,000 quickly to utilise as working capital or to buy inventory.
How to Compare Personal Loans?
Before applying, compare personal loans to find the best price. Observe the following:
- The amount borrowed: To identify lenders that accept your desired borrowing quantity, start by determining what amount you need. Depending on the lender, you can usually anticipate borrowing between $2001 to $100,000. Remember to figure out your monthly expenses.
- Loan period: The term is the amount of time you have to repay the loan. The typical period for personal loans is one to seven years. Longer terms result in lower monthly payments but higher overall interest costs.
- Fees: Application fees, processing costs, and recurring account fees should all be considered. The comparative rate will typically include any fees you must pay, giving you a quick overview of how expensive a loan is. Costs that are voluntary, such as early repayment fees, are sometimes excluded from the comparative rate.
- Personal Loan Interest Rate: Some personal loans have fixed rates, and the majority have variable rates. Although they are often lower, variable rates might alter over time. Throughout your loan, fixed rates won't vary, but they're typically more expensive.
- Repayments: With various personal loans, you can select weekly, biweekly, or monthly payback schedules. Certain lenders also allow you to make additional payments if you look forward to paying off a loan early.
- Other Attributes: Look for things like early repayments to explore more possibilities. You can follow the status of your repayments with the use personal loan EMI calculator.
Compare Personal Loans in Australia
To make it easy for you, we have compared top lenders' personal loan interest rates. Now compare the personal loan rates in one go and cope with your urgent cash requirements in the minimal possible time.
This comparison is based on a loan amount of $20,00 with three years of repayment tenure.
|OurMoneyMarket Services (Unsecured Personal Loan with Excellent Credit)
|ING Bank Australia
|MoneyPlace (Unsecured Personal Loan with Excellent Credit)
|Liberty (Unsecured Personal Loan with Excellent Credit)
|Westpac (Flexi Loan)
|OurMoneyMarket Services (Unsecured Personal Loan with Very Good Credit)
|OurMoneyMarket Services (Unsecured Personal Loan with Good Credit)
|Liberty (Unsecured Personal Loan with Very Good Credit)
|MoneyPlace (Unsecured Personal Loan with Very Good Credit)
Is a Personal Loan Right for Me?
Getting access to funds that you don't have and can't afford might be a typical problem that personal loans can help with. They might be used for a wedding, a vacation, unexpected expenses, or virtually anything else you can lawfully purchase.
Additionally, specialised loans exist for businesses and vehicles, and most loans are for making a personal loan a worthwhile purchase.
Your situation will significantly impact whether or not a personal loan is a superior alternative for you. In general, it may have more lenient qualifying conditions than credit cards, and you might find it simpler to obtain larger loans even if you don't have a long credit history. Personal loans also frequently have lower interest rates. However, using a low-interest card or paying off the balance within the card's introductory term may result in lower credit card costs.
Better solutions might be available if you have financial difficulties and require a small sum of money immediately. It's crucial to borrow responsibly to break the debt cycle.
A personal loan can be a good choice if any of the following apply to you:
- Want to borrow at least $2,000
- You wish to pay off a variety of bills over a predetermined period.
- Wishing to spread out payments over a 1 to 7-year period in order to make them more affordable
A personal loan might not be a good fit if any of the following apply to you:
- Seek access to funds at any time
- able to pay off your expenses within a year
- Want to have access to credit whenever you need it
How to Apply for a Personal Loan?
The application procedure consists of several steps initiating with:
- Check your credit score to determine your negotiating position and the likelihood of your loan application is approved.
- Considering your needs and financial position will help you create a budget that you can afford to repay.
- Make a short list of potential lenders that can satisfy your needs and, most importantly, who will provide funding for the project you want to carry out. Some lenders exclusively offer loans for specific things, like renovating your house or buying a car.
- After selecting a lender, submit your application: The fundamentals needed to apply are primary forms of identity, proof of income in the form of a pay stub, transaction details of previous months, employment proof, and a tax return. Lender criteria vary, but these are the essentials.
Documents Required for Personal Loans
A few lenders may put forward an intense documentation process, but usually, banks and financial institutions ask for the below-depicted documents:
There is no need to provide ID if you're an existing customer finance provider. However, the lender will ask you to provide valid identity proof if you are a new client. Prepare the following documents beforehand to secure a personal loan with utmost ease:
- Driving licence
- Document about age proof or birth certificate
- Citizenship certificate
- Health care and Pension card (in case of pensioner)
- Utility bill
- ATO assessment notice
Income Proof Documents
You will have to assure the lender that you are financially stable to pay back the borrowed amount within the given time frame. Lenders usually ask for income-proof documents such as recent payslips to determine your credibility. If you are self-employed, then financial statements or income tax returns work well.
You may also be asked to provide your current and former employers' contact details and your annual salary after tax.
Generally, banks, financial institutions and other lenders ask for recent bank statements. It helps them get clarity about your financial stability, savings, credit usage, and debts. Additionally, it helps in the determination of the repayment capabilities of the borrower.
Assets and Liabilities
In addition to identification proof, income proof and bank statements, lenders usually ask for details associated with assets and liabilities. These details include shares, real estate investment, life insurance, vehicles, etc.
Why use us?
The customised financial services from UrbanMoney Oceania caters to the varying requirements of the applicant on their fund procurement journey.
Low interest rates
The intricate online model ensures the best interest rates are offered to the customers. The services aim to diminish the overhead costs.
Urban Money Oceania Exclusive Deals
The customers can avail of various exclusive offers available to the customers by UrbanMoney Oceania designed to cater to their budgetary needs.
Australian based support team
Our support team offers tailor-made services to customers intending to conclude loan transactions without any hassle. Available to customers at their convenience.
What Our Clients Say About Us
Mr Roshanlal & Mrs Tina Gupta
Nishani and Tanmay's team is an excellent property mortgage expert who helped me buy our first investment and self-occupying homes. Being a first home buyer (investor and self-property owner both), it's essential to have a trusted property mortgage expert who can help complete this journey hustle free. Their wide range of mortgage products with a broader reach to the various lenders and their ability to help me understand various mortgage aspects/processes up to my satisfaction level was a great experience. Thank you, Tanmay and Nishani, for an excellent property mortgage purchasing experience. I highly recommend your services.
Dr Zafar Abbas Zaidi Syed
Something I really appreciate about your business and efforts is that you guys are very devoted with your responsibilities and always play in front to provide a best guidance to the customers. I think Nishani and Tanmay did a great job when you help me to take a first step for the mortgage for my first home, it showed that you had professional skills to take your customers ahead.