A personal loan can help you pay for something special like a holiday or home renovations. Make sure you can afford to borrow, and then shop around to get the best deal on interest rates, fees and charges.
If you get a personal loan, you must repay the money you borrow within a specific time, usually 1 to 5 years. You also pay interest on the amount you borrow, plus fees and charges.
All credit providers are required by law to lend you money responsibly. This means they must not lend you money if they think the credit is unsuitable for you.
The credit provider may look at your credit report and ask for:
This is so they can verify your ability to meet the loan repayments without financial hardship.
Secured loans usually offer lower interest rates than unsecured loans, but you need to put up an asset, like your car or home, as 'security' to get the loan. If you don't repay the loan, the credit provider may (in some circumstances) sell your asset to get its money back without first going to court.
With unsecured loans you don't have to put up an asset as security, but the interest rate is usually higher. To get an unsecured loan, you must convince the credit provider that you can repay the loan. If you don't repay the loan, the credit provider may take you to court to get its money back.
Peer to peer lending, also known as marketplace lending, is an alternative to traditional lenders such as banks, building societies or credit unions. People who have money to invest are matched with people who are looking for a loan, through an online platform.
Marketplace lenders offer secured and unsecured personal loans and you will need to provide your personal and financial details, just as you would with a more traditional lender.
A personal loan could sound good because it may offer a lower interest rate than other types of credit and repayments are spread over a long time. But keep in mind that the longer the loan term, the more you will pay in interest.
When comparing loans, make sure the term is the same for each loan. This will give you a true picture of the difference in interest rates.
If you are normally good with money but are suddenly in need of cash fast, Stacks Loan could be the perfect solution for you:
Whatever your needs, Stacks Loan is here to assist with a personal loan in Australia. You deal direct with your broker, no call centre here, you get a direct line or mail us.
Our secure application process utilises Stacks Loan to provide you with one of the safest and most confidential personal loans Australia has.
So apply for a personal loan now, and you may even be approved today.