What are the benefits of personal loans?

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Benefits of Personal Loans

Personal Loan Benefits

Use the money for whatever you like – you could pay for a holiday, a wedding, medical care, etc. You’re not tied to a specific thing, unlike a home improvement or car loan.

Flexible terms – you can choose how much you want to borrow and how long you’d like to repay it. However, this does depend on your credit score and will affect the amount of interest you’ll have to pay.

Fixed interest rates and repayments – with personal loans, interest rates are usually fixed. And you’ll repay a fixed amount every month, which makes it easier to manage your budget.

Consolidate existing debts – consider paying off all your debts with one loan. A single repayment plan could make your debt more manageable. You may be able to secure a better interest rate too, but it’s important to close down those credit facilities when you pay the debt balances with the loan.

Apply and receive the money quickly – getting a personal loan is a much faster process than secured loans (also known as homeowner loans) or mortgages. You can apply online and if you’re approved, we’ll usually deposit the money within hours.

What else do I need to consider?

  • A loan can be an expensive way to get money and isn’t without risk if you fail to meet the terms agreed
  • Unsecured loans will have a higher interest rate than secured loans
  • Generally, the interest rate is lower the more you borrow, so it can be tempting to get a bigger loan than you actually need
  • The ‘from’ interest rate advertised may not be the rate you’re offered – make sure you understand the total cost of the loan before agreeing to terms
  • If you have a lower credit score, you may be charged a higher rate of interest on a personal loan.

How much can I borrow?

You can typically borrow between up to $100,000 with a personal loan. The amount depends on your credit rating and how much you can afford to repay. NB, some of the larger amounts may only be available for existing customers.

What makes a good personal loan?

A good personal loan is one with the best possible interest rate you can get and at an affordable monthly repayment, which of course will vary depending on your circumstances. A fixed interest rate loan could be a good option as your monthly (or weekly, fortnightly) repayments will remain the same throughout the term of the loan.  At Loansmart we’ve got some great interest rates and we deal with most lenders in the marketplace.

Simply complete our online application or give one of our friendly team a call on 0800 255 155.

Apply online now:

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Check out our F.A.Q’s page to answer any preliminary queries you may have.