Applying and getting approved for a personal loan gives you access to money that you do not currently have at a time you need it. Personal loans can be used in a wide range of purposes. Whether it is a medical emergency, a dream vacation, payment for school fees or to fund a gadget purchase, a personal loan can give you the financial bump that you need for any personal purpose you have in mind.
Personal loans are short-term loans. You can borrow a small amount of money, up to less than $100,000 to be repaid for as long as 7 years, depending on your bank of choice or the lending company that handles your application.
Unlike home loans that can go for 15 years, repaying a personal loan is usually within a shorter period, but with interest rates that can be as high or even higher than home loans. The interest rate of your loan is also determined by your credit score. Good or excellent credit ratings have lower interest rates compared to credit histories with missed payments or paid defaults.
Intellichoice Finance can help you in getting a personal loan suited for your needs. Looking at fulfilling a dream vacation? Intellichoice have the right lender for you. Looking to finance a boat purchase or for funding a cosmetic surgery procedure? Intellichoice Loan Specialists can assist you. Just send us a message or leave your questions in our contact page and we’ll find the best finance solutions that suits your needs and budget.
Personal loans are limited to personal consumption and cannot be used to finance a business or purchase assets for a business. If you are looking for financial assistance in these areas, our Intellichoice brokers can find a suited financial lending option for you.
Applying for a personal loan requires several financial documents which include:
Most banks and lenders will access your initial rate prior to application. This is just a way to measure your financial risk as a client and will not affect your credit score. Intellichoice Finance can assist you to identify this. The application can be done online or through our loan specialists. Submit the required documents and wait for approval. Funds are deposited directly to your account after the finalization of the loan approval.
Our team of experts spends the time to find out about you and your circumstances. We will determine the best options for you based on your earnings, any debts you might still have and your current needs and objectives.
1. Credit reports
Confirm your credit rating scoring – your record of credit rating will play a role in the success of your application. If you have had bad credit, some lenders may not want to approve your loan application…
2. Loan repayment periods
The loan repayment period refers to the time between the first payment on a loan and the agreed date at which the entire loan need to be repaid. A longer repayment period means you pay less per installment, however for longer and with more interest than on loans with a shorter repayment period.
3. Interest rate types
Loans are presented both with fixed or variable interest rates. A fixed interest rate will not change for the duration of the loan repayment period, while a variable interest rate may change over the repayment period. Understanding the type of interest rate can help you decide on the loan that you take up eventually
The ability of a borrower to meet loan repayments, based upon the loan amount, the borrower's income, expenses and other commitments. Learn more about serviceability assessments and how they play a role in your application for a personal loan.
5. Penalties for pre-payment or in the case of default
Make sure that you are aware of the fees and charges which might be charged by the lender before taking on a loan, including what penalties can apply. For instance, a pre-payment penalty can happen as an extra charge imposed by some lenders when a borrower pays off their loan early, thus compensating the lender for any lost future income. On the account of defaulting on a secured loan, additional remedies can include repossession.
6. Supporting documentation.
When applying for a loan, you’ll be required to supply certain records to assess your qualification to borrow, and ability to make repayments every month. These documents include proof of your identity, bank statements indicating any savings or liabilities, and proof of income (such as pay slips and tax returns). Getting your paperwork in order before you apply for any loan can help you save time, and might speed up the loan approval process.
At Intellichoice Finance, we’ve been successfully providing finance solutions to satisfied clients for years. From home loans, bad credit loans… to owner builder loans… equipment and commercial finance – we’ve got it covered.