What is a personal loan and how does it work?

A personal loan is a type of finance whereby the financier lends you money to make a sizeable purchase but does not take security over an asset like they do with a secured loan. A personal loan is like a normal secured vehicle loan in that there is a set loan term and minimum monthly repayments, however if you default on the loan, the financier can’t take the asset as it is not used as security for the loan. Because a personal loan doesn’t have an asset as security, the interest rates are generally higher than a secured loan since there is more risk for the financier.

What can a personal loan be used for?

A personal loan can be used for a wide range of things such as to buy a car, arrange repairs on your current car, consolidate your finances, renovate, or extend your home or go on a holiday. There are endless reasons to choose a personal loan.

What are the benefits of a personal loan?

Personal loans offer flexible loan repayments with loan terms anywhere from two to 10 years. The ability to borrow anywhere from $5,000 to $50,000, depending on your needs. The option to secure your personal loan against an asset to reduce the interest rate. The potential to claim tax deductions if you’re purchasing a vehicle to use for business purposes.

Who should choose a personal loan?

A personal loan may be right for you if you’re looking to purchase a vehicle that falls outside general lending guidelines, e.g. a classic or vintage car or a track motorbike. A personal loan can also be considered for reasons other than purchasing a vehicle as discussed earlier such as home repairs or renovations, holidays or even debt consolidation.

How can I get a personal loan?

Simply speak to our friendly team on 1800 538 287 today or get a personalised, instant online quote in under a minute right now. For more information on personal loans, visit our personal loan page or contact us on 1800 538 287.