Personal Loan

Personal Loan

Personal Loan – Which one will suit you best?

If you are looking for a personal loan you have come to the right place, you can compare different personal loan products from personal loan lenders Australia wide – giving you a comprehensive selection of personal loan products on the web to choose from. Whether you are looking for a car loan to buy a new car or personal loan for that well deserved overseas holiday or maybe you would like to simplify your finances with a debt consolidation loan, what ever type of personal loan you are looking for you can find it with Money Monthly.

To make finding the right personal loan for you a lot easier you may wish to use a personal loan calculator, which you can use to calculate your loan repayments depending on the type of loan you are looking for, such as car loans or debt consolidation loans but if you’re not quite sure what you’re looking for use our personal loan search tool that seeks out personal loans based on your needs, just enter in your details and search. There are personal loan lenders across Australia; some deal with personal loans Australia wide, and some only deal with customers living in a particluar state. So if you are looking for personal loans South Australia, personal loans Victoria, personal loans New South Wales, personal loans Queensland, personal loans Northern Territory, personal loans Western Australia or personal loans Tasmania has, check first that the lender can assist you living where you live. Some lenders also deal only with metropolitan cities, and not state wide.

There are many reasons why you would want to take out a personal loan. For most of us it’s because we want to have something now and we just don’t have the cash to pay for it.

There are benefits of taking out a personal loan over a credit card too, such as:

  • Fixed term (5 years for a secured personal loan, 7 years for an unsecured personal loan) – which unlike a credit card, will eventually be paid off and closed
  • Fixed interest rate for the life of the personal loan – there will not be an interest rate rise for the duration of the loan, so budgeting is made easier
  • Fixed up front fee structure (normally an establishment fee, and sometimes a monthly fee, which is built in to the repayment amount) – all fees are disclosed in the personal loan documentation
  • Lower interest rates generally than credit cards

There are 2 types of personal loan products that personal loan lenders in Australia will be able to offer you, and the type will depend on the ‘purpose’ for the loan.

To help you make a decision on what personal loan Australia wide will be best for you, read about secured personal loans and unsecured personal loans, then decide what will suit you best taking your own unique situation into account.


Secured Personal Loan

A secured personal loan is where the lender agrees to lend the money but places a mortgage over an item of worth. Examples of what a secured personal loan could be for are houses, cars, boats, caravans, motorbikes; in fact anything that can be registered with the Department of Transport. The personal loan lender will want details of the item, such as vin number, engine number, and registration number if the loan is for a car. in most cases the lender will not be giving you the money, they will pay the supplier instead, so for example if you ar buying a car from a car dealer, the lender will pay the dealership, and once they have the money, you can drive the car away.

A secured personal loan for a car is often referred to as a car loan, and car loans are the most popular reason most of us have for taking out a personal loan.

Before you make an application to a personal loan lender, it is vital to have an idea of what personal loan lenders look for when deciding whether to accept your application or not. The criteria lenders use is often refered to as the 6 C of credit assesment.

Perhaps the purpose for borrowing money is for an event, rather than an item. This is where your selected personal loan lender will perhaps offer you an unsecured personal loan.


Unsecured Personal Loan

An unsecured personal loan is useful when you wish to just have extra cash in your hand to spend. There are many reasons where a personal loan could be required to put some extra money in your pocket such as for that over seas holiday you’ve always been talking about, a wedding or honeymoon, renovating the house or landscaping the garden, in fact an unsecured personal loan can be for any worthwhile purpose.

When using a personal loan calculator to calculate the repayments on an unsecured personal loan, you can select the loan term from 1 to 7 years, unlike a secured personal loan which has a maximum loan term of 5 years, making the repayments lower based on the same amount and interest rate. However, you will notice that the personal loan lenders advertised interest rate for an unsecured personal loan is higher than for a secured personal loan. The reason is because there is a greater risk involved, no security is taken, so in the event that the loan repayments are not made, no item can be repossessed.

Even though the repayment amount will be less for the unsecured personal loan because of the longer loan term, you will end up paying more interest back to the personal loan lender, if the loan goes the full term.

Before taking out a personal loan it is a good idea to discuss your options with a financial professional.