Many Australians have difficulty getting a personal loan. This is presumably because obtaining one in Australia is simpler than elsewhere.
You can get a personal loan immediately in Australia, with no monthly payments or fees.
Did you know that Personal Loans can be applied for up to $200,000? (Yes? Great! Continue reading.
Experian reports that 24.6% of Australian households had outstanding loans as of 2017. This compares to 15.9% and 12.3%, respectively, in the United States.
Australia has many options for borrowing money or refinancing an existing loan. They are easy to apply for and approve.
Australian Banks Personal Loan Requirement
What credit score is required to obtain a personal loan in Australia? While some banks require a minimum credit score of at least 80% to get a personal loan, others only allow you to borrow money if your score is lower.
Most banks will charge higher interest rates if you have a lower credit score.
However, there are ways to get around this. Many banks will offer a personal loan for those with low credit scores, but only after an evaluation.
You can apply for a personal loan with a score between 80 and 85 percent and no more than three credit cards and some debt.
You will need to pay off at least half your credit card debt before applying for a loan with low credit scores.
How to Apply in Australia for a Personal Loan
There are other options than the ones listed above. You can apply for a personal loan by visiting a bank branch or credit union to apply for one.
Online loan applications are also possible; you will need to give details such as income, assets, and debt.
You can also apply online if you don’t have an agent. Because there are so many loans, the decision-making process can take longer.
You will need to choose between various options based on your criteria. It is important to remember that the greater the loan amount, the higher your interest rate.
Minimum Credit Score for Personal Loan in Australia
The general rule is that the lower your credit score, the higher the interest rate and the longer it takes to get your loan approved. You can do many things to improve your credit score and speed up the approval process.
Paying off your debt and creating a plan for doing so is one of the best things you can do. It is important to get rid of any credit card debt you have not been able to pay for some time.
A lower payment than the due amount is recorded even though it is not applied to the credit card balance. If you make more payments, your credit score might decline.
The usage of credit cards might potentially damage your credit score. This includes how frequently you are late on payments or owe money.
List of 10 Easiest Banks to Get Personal Loan in Australia
There are many ways to get a personal loan in Australia. According to an online survey by CompareCards, the following 10 banks are the easiest to obtain a personal loan in Australia. There are many ways to get a personal loan in Australia, so this list is not comprehensive.
1. ING Personal Loan Unsecured
NG was awarded the Outstanding Customer Satisfaction Award and the Excellent Customer Service Award in the 2022 People’s Choice Awards.
The interest rate for the ING Unsecured Personal Loan ranges from 6.99% (7.13% compared*) to 10.99% p.a. (11.21% comparison*) Based on credit assessments, terms range from 2 to 7 years.
The loan limit is $60,000, and flexible monthly or fortnightly payments are available. There is no cost for paying off the loan early or making extra payments. However, you can’t redraw the loan. There is also a $150 loan setup fee.
2. Wisr Personal Loan Unsecured
Wisr claims you can submit an online application and receive a response in under 30 minutes.
Funds will be available within 48 hours after approval. For borrowers with good credit, interest rates start at 6.45% (compared to 7.27%*). The maximum amount borrowed is $30,000.
3. Handypay Green Loan
Handypay, a specialist provider of home improvement plans, offers loans to borrowers with good credit that you can use to fund various green home initiatives like solar panels, rainwater tanks, and batteries. Rates start at 6.99% per annum—7.62% comparison*, based on loan amount & term length.
4. Symple Unsecured Personal loan
Symple offers unsecured personal loans between $5,000 and $50,000. A maximum loan term of seven-year is allowed for borrowers to repay the loan.
Symple charges an initial setup fee. This is not a flat rate, and the amount you borrow will determine the amount of the establishment fee.
Symple charges ongoing, late, and dishonor fees, and early repayment is not subject to penalty fees.
5. NOW Finance Personal Loans – No Fee, Unsecured
Fixed interest rates as low as 5.95% per annum (5.95% p.a. Comparison*: Online lender Now Finance is the best option for borrowers with good credit who want to borrow between $5,000 and $50,000.
There are no ongoing fees or upfront fees. The maximum loan term is seven years; if you borrow less than $8,000, it is three years.
Read also:
10 Best Personal Loans with Low-Interest Rates in Nigeria
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6. OurMoneyMarket Auto Loan
OMM offers competitive rates at 5.45% per annum (6.07% p.a. Comparison* for borrowers with excellent credit.
It was still cheaper than other loans available, even with the $250 application fee. It is available for loans up to $75,000 with loan terms between 1 and 7 years.
There are no monthly fees and a lot more flexibility. Other benefits include paying off your loan early, avoiding penalties, and access to a free redraw. You can also choose from weekly, monthly, or fortnightly repayments.
7. Heritage Bank Car Loan
You can choose a fixed-rate starting at 7.99% p.a. (8.62% p.a. Comparison rate* or a variable interest rate starting at 11.99% p.a. (12.61% p.a. Comparison rate*, based on your financial and credit standing.
With terms up to seven-year, you can borrow as much as $5000 or as little as $25,000 and get terms of up to seven years.
Whether or not to make your payments every week, fortnightly, or monthly. You can make additional payments with this loan, but you may be charged an additional penalty fee.
8. loans.com.au
loans.com.au impressed judges with its affordable pricing and simple green car loan process. Fixed rates start at 4.89% per annum (5.44% p.a.
This loan is available at a comparison rate* and rewards customers with great credit. Loans.com.au offers lower rates, starting at 3.14% per annum. (3.68% p.a. Comparison rate* for homeowners (conditions apply). With terms between 3-5 Years, you can borrow as much as $100,000.
9. Alex Bank Personal Loan
The unsecured personal loan has competitive fixed rates that start at 5.24% (compared to a 5.24% rate*).
This rate is only available to those with excellent credit and a solid repayment record. You can make additional payments at no extra cost; whether you choose a weekly or fortnightly repayment plan, you won’t have to worry about paying an early settlement fee.
10. Harmoney Personal Loan – Unsecured
Harmoney’s unsecured personal loan is not your typical loan, and it’s fun, and it’s peers rather than providers.
Fixed rates start at 5.35% p.a. (6.14% p.a. Comparative rate*, but can rise to 19.09% per annum (19.99% p.a.
Depending on your credit history, the comparison rate* may vary. Harmoney offers loans ranging from $2,000 to $70,000 with 3, 5, or 7 years.
It is much easier to get a personal loan in Australia than in other countries. A personal loan can be obtained for as low as $25, and most banks will offer it on a non-interest basis.
If you have bad credit or are desperate for money, a personal loan may not be the best alternative. If your yearly salary is less than $80,000, you could be better off with a personal loan.
Watch the video below to the easiest banks to get personal loan in Australia:
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