Personal Loans are one of the most popular choices by consumers in Australia when it comes to financing. When somebody needs to make a purchase or pay for something fairly substantial and they don’t have the money, a Personal Loan is often what they’ll think of pursuing first.
The good news is, when it comes to shopping around for Personal Loans, Australia has numerous lenders offering this more flexible type of finance. Let’s now look at some advantages and steps to managing both big and small purchases with a Personal Loan.
#1 – Find a Personal Loan That Matches Your Expectations
Not all lenders are the same and their Personal Loan deals and terms are not necessarily the same either. Some lenders may offer Personal Loans in the range of $5k up to $50k, others may offer smaller maximum and minimum amounts.
If you require a certain amount for your needs, first check that the lender actually offers Personal Loans for that amount. You can generally discover all this information on the company’s website. If you’re only looking to borrow a small amount, say from $2,000, you will want to look at a private lender. The majority of banks start their Personal Loans at $5,000 or more.
#2 – Do You Need the Money Quickly?
Many lending institutions are not particularly fast when it comes to processing Personal Loans and giving their decision. Some lenders may take weeks to get back to you or even up to a month.
If you’re not in any hurry, then this may not be an issue at all but if you need the money quickly, such as for an emergency, you’ll want a decision faster than that. If this is the case, you’ll need an instant Personal Loan. Once more, try the private lending sector, as private lenders often make a point of offering fast turnaround times, possibly with a decision on the same day that you apply.
#3 – What Does the Lender Allow You To Use the Funds For?
Personal Loans are extremely flexible when it comes to spending the cash and that’s one of the reasons they are so popular among Aussies. Still, despite this flexibility, when you apply for a Personal Loan, one of the questions you are asked is what you want the money for primarily. Lenders can vary in their criteria when it comes to Personal Loan spending.
Be sure to check with the lender before applying, to determine if your purpose for the loan meets with their approval. There’s no point going through the time and effort it takes to apply when your personal purpose is not on their approved list of reasons.
Some typical reasons an individual may seek a Personal Loan is for a holiday, wedding, home improvements, purchasing furniture, new car or consolidating debt.
#4 – Does the Lender Offer Applications for Personal Loans Online?
These days, everything is about convenience. So much of our banking and other everyday tasks can be taken care of online, so you’ll want to be able to make your Personal Loan application online as well. It’s quick, it’s easy and it’s convenient. Doing it from home means you can relax and fill out the application at whatever time suits you best. You’ll also be able to upload digital documents required to support your Personal Loan application.
#5 – Check All the Lender’s Criteria
In order to best manage your Personal Loan once you have one approved and established, you’ll want to be fully aware of all their lending criteria and loan terms:
- Does the lender offer repayment terms that suit you?
- Is there a loan establishment fee and how much is it?
- Can you repay the loan early without a penalty?
- Does the lender have a dishonour fee for late repayments?
- Is the loan secured or unsecured?
- How much is the interest rate and is it fixed or variable?
These are all questions you’ll want to know the answer to before making your loan application.
Take the time to work out exactly what you want, then shop around for a Personal Loan deal that’s just right for you.