Let’s say you need a loan to purchase a car or renovate your home. Who do you turn to? While the most traditional way of getting a loan is through a bank, there are much easier, faster, and securer ways to get your hands on funds that you require!
In this blog, we will shed light on the types of personal loans and explore the various ways of getting a personal loan in Australia. Let’s begin!
What Is a Personal Loan?
A personal loan is a fixed amount of money that one usually borrows for a set amount of time and repays it with interest in regular payments over the course of the loan term (generally between 3 to 5 years). Most people in Australia take personal loans for debt consolidation, going on a vacation, home renovations, car purchases, planning weddings, paying student fees and medical bills, etc.
Types of Personal Loans
There are 4 major types of personal loans:
1.Fixed-rate loan: A fixed-rate loan has a fixed (higher than variable) interest rate over the loan term. There is no risk of your repayments increasing with the rising interest rate if you choose this option. Fixed-rate loans are easy to budget and ensure regular monthly repayments. However, you may miss out on interest savings due to rate cuts.
2.Variable-rate loan: A variable-rate loan has a fluctuating interest rate. You save money if the interest rate falls and can make extra repayments towards the loan. However, if the interest rate rises, repayments will increase. This can make it difficult to manage them.
3.Secured loan: A fixed or variable-rate loan may be secured against an asset as collateral, such as your car. Secured loans have lower interest rates because the lender has the right to claim the asset if you default.
4.Unsecured loan: A fixed or a variable-rate loan may be unsecured. This means that you do not have to assign any asset as collateral. Such loans have high interest rates to provide security to the lender.
3 Ways to Get a Personal Loan in Australia
There is no one way to apply for a personal loan. Many financial institutions in Australia provide lending services. The most common of these institutions are banks and credit unions. Third-party lending services like CashOnYourMobile are also becoming increasingly popular due to their easy applications and fast approval procedures!
Here are 3 ways to apply for a personal loan in Australia (#1 is the best!):
1. Via Online Lender CashOnYourMobile
CashOnYourMobile is Australia’s Most Trusted Lending Service. Whether you need cash loans, payday loans, car loans, caveat loans, or business loans, CashOnYourMobile is here to help fix your money problems quickly!
The online lending service can help you secure up to $50,000 in cash in as little as 4 hours to solve your financial issues as soon as possible. If you are tired of visiting banks and getting rejected because of your poor credit score, do not worry as CashOnYourMobile provides bad credit personal loans as well! CashOnYourMobile has an Australian Credit License and is also registered with the Australian Financial Complaints Authority. If you are over 18 years old, have Australian citizenship or Permanent Residency, earn at least $550 a month and have a savings or a checking account, you can apply online for a loan between $400 and $50,000 today!
2. Via Credit Unions
Another way to apply for a personal loan in Australia before you go knocking on a bank’s doors is through your local credit union, especially if you have a poor credit score (690 or below).
Credit unions are not-for-profit organizations that offer both secured and unsecured loans. However, they rarely provide loans with variable interest rates. The fixed rate you will get from a credit union will depend on your income, debts, credit score and credit history.
Different credit unions have different policies and application procedures. Some have an online application, whereas others will require you to come in and submit your paperwork.
The difference between credit unions and online lenders is that credit unions run a hard credit check before approving a loan, so even a small dip in your score can impact your personal loan approval. Some credit unions, especially those in underdeveloped areas, may not have mobile banking or online technology that most online lenders have. This can slow down the entire application and approval process.
3. Via Banks
For decades people have been walking into banks and applying for loans. Obtaining a bank loan is one of the most preferred methods since a bank is a reliable entity. However, there are major drawbacks associated with getting a personal loan from a bank.
Banks have stringent policies and rules. It is extremely tough to qualify for bank loans. You can forget about getting a bank loan if you have a bad credit score or credit history. Banks only lend to individuals who they know for sure can repay.
Most personal loans taken from banks are secured, have high interest rates and lengthy application procedures. It can take months before you receive your approval for a bank loan.
Bank loans also have a reputation for being inflexible. You could be paying interest on funds that you are not even using without realising it. In addition, bank loans have extra charges such as early repayment fees and service fees, making them an expensive mode of financing.
Verdict on the Best Way to Get a Personal Loan
This is the era of technology. The world is moving at a fast pace, and everything is getting digitized. In such times, turn to online lenders, such as CashOnYourMobile, that provide quick and secure lending services. Let go of all the stress. Do not bother yourself with making phone calls. Simply apply for a personal loan in Australia via CashOnYourMobile and receive up to $50,000 in funds for around 12 months with great convenience!