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3 Considerations for Applying for a Personal Loan in Australia

Posted on 27 October 2015

Whether you’re a first time loan applicant or a seasoned veteran of the financial industry, different creditors have different terms. You need to read the fine print before determining which lender is best for you! Always remember, there are 3 key things to know before applying for a personal loan in Australia.

Terms

Before taking a loan, you need to ensure its repayment will fit into your future budget. When applying for a loan online, you should easily be able to locate the prospective financial institute’s term information on their website. If you’re looking for a $1000 loan but cannot pay the weekly or monthly payments on a 3 month loan, then perhaps you should investigate a longer repayment plan or other alternative.

Rates

Not all interest rates are a good option for you. Even when you’re in a pinch, you should compare and investigate interest rates with multiple lenders. Luckily, with online applications you should have access to rate information at your fingertips. You should never have to settle for a high interest rate just because you’re in need.

Don’t forget, most lenders interest rates will change based on the amount AND term. So when comparing fees, make sure you’re comparing apples with apples.

Fees

Just like with credit cards, you should always keep your eyes on an institution’s fees. If you cannot identify what a certain fee is, you probably shouldn’t have to pay it. While all institutes will have servicing fees, you need to set parameters for what you are comfortable with paying and what you are not. A good way to set these boundaries for yourself is by determining how much the fees, in combination with the interest, will tack onto your repayment.

Don’t sell yourself short when it comes to getting a personal loan. Contact us so we can help you on your way!