Before knowing how to apply and what are the requirements for applying for a small personal loans Australia, let us know what a personal loan is and why do we need it? A personal loan helps you to meet your current financial needs and is unsecured. Usually, collateral security is not required while applying for a personal loan and the funds received can be used as per the needs.
How to Apply for Small Personal Loans in Australia
One could apply for small personal loans Australia by applying online or visiting the local branch situated nearby keeping in mind the following requirements:
Things you Need to Know While Applying for Small Personal Loans in Australia
- Understanding why you need the loan
One should have a clear mindset about what type of loan and for what purpose he/she is taking it for. Some basic reasons can be buying a vehicle for business purposes or initiating a growth plan.
- Secured loan or an unsecured loan! Which is beneficial?
Small personal loans Australia allows you to choose between having a secured loan or an unsecured loan. If you opt for a secured loan interest rate will usually be lower than an unsecured loan and the lender has the right to sell your asset if you are unable to pay your monthly instalments in time.
- Predetermine your repayment plan
Your repayment amount depends on how long you are taking the loan. Calculate it systematically and workout on what you can afford to pay each month.
- Choosing the type of interest rate and understanding the fees and charges
Choose the type of interest rate you are comfortable with, i.e., Fixed or variable and clearly understand the fees and charges laid on you for the loan being granted. If confusion arises to consult an expert, it would be better to know about how much one has to pay for the personal loan before signing any legal document to avoid any further unfaithful circumstances.
What types of personal loan can you avail in Australia?
A personal loan is a loan that establishes the borrower’s credits which are granted for personal use. The personal loans are a type of unsecured loan. It is based on the borrower’s integrity and ability to pay.
There are two types of personal loans one can avail particularly for Australia
- Fixed-rate personal loan
Fixed-rate personal loan keeps control of the budget with a fixed interest rate and also fixed repayments for the tenure of the loan.
- Variable-rate personal loan
Variable-rate personal loans are flexible to make repayments without any extra fee. The redraw facility helps you to redraw available funds.
Features and Benefits
There are many benefits of having small personal loans Australia some of them are mentioned below:
- Select your repayment frequency and tenure of repayment. You could also, select the period of repayment i.e. pay weekly, once in a fortnight, monthly over 1 to 7 years.
- The fund is received on the same day. If applied for the loan and approved before midday on weekdays (Sydney/Melbourne time).
- Keep track of your loan anywhere and at any time with online and app services. Make the repayments and manage your loan in NetBank and CommBank app.
- Borrow a lump-sum. A loan from $4,000 to $50,000 could be borrowed at once.
- Flexibility in redrawing available funds. Quick and convenient access to the available funds in your redraw facility whenever in need.
- Save interests by repaying the loan faster by making extra payments without a fee.
Personal loans are granted on the basis of income level, credit, and employment, repayment capacity, etc. To help you with current financial needs, one can opt for small personal loans Australia. This will help them overcome their financial problems.