A personal loan is a secured or unsecured line of credit. You can use the money for a range of purposes, for example buying a car consolidating a debt, paying for a wedding, hospital bills and so forth. Personal loans are personal because the funds can use at your discretion. Personal loans are an agreement between two parties you and the lender, for you to have a specific amount of money and pay it back over time or the time frame of your payment is determined by the specific terms of your loan. The interest rate on your loan is determined by your credit score.
Whether you need to renovate your home, plan for a holiday or wedding or need to consolidate your debts, a mortgage broker from Intellichoice can help you with a personal loan to make it happen.
A personal loan is essentially a lump sum of money that you borrow from a mortgage lender. Personal loans are generally meant for personal use only. That is, the money must be wholly or predominately for personal or domestic use. Personal loans cannot be taken out for business use, such as starting a business, stock for a business or to purchase a car for the business. If you do require a loan for your business or to purchase inventory, we have alternative business finance solutions to suit your needs.
There are many reasons why individuals apply for a loan. They may be looking for the home they’ve been dreaming for, a car or simply to go on a holiday. At times we need something in a hurry and simply don’t have the budget to fund it straight away.
Sourcing the finance for what you want doesn’t have to be a burdensome thing. With Intellichoice, we can help advise and source the right options for you, through our specialist team of experts.
How does Personal Loans work?
They are fairly simple and straightforward. When you apply and receive the approval for the loan, you will receive the amount of money you requested to borrow in a lump sum. You pay back the money in installments. The timeframe of those payments is determined by the specific terms of your loan. A great rate will save you money when you repay the debt because you will be required to pay less on interest. If you have questions or need more information, don’t be afraid to ask our Loan Specialist.
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.