Getting a small loan in Australia can be of help when you don’t have a way out. In every situation you want to get yourself into, you should think it through. Here are a few guidelines you should consider before getting a small loan in Australia;
Choosing A Personal Loan
Well, something led you to wanting a small loans Australia. The purpose of your loan will allow lenders gain trust in you. Say, some lenders would rather give you a loan for a business start-up than a wedding.
Before requesting for a loan, you should know if you are able to pay for the small loan Australia and how long it is going to take you to refund the loan. After the decision is made, you should then look into the loan’s term, associated fees, early exit fees and your loan provider.
Interest Rates On The Loan Acquired
There are two main types of interest rates; variable interest rates and fixed interest rates. Fixed rates never drop or rise, does not matter if the market rates vary. Good thing about it is it stays constant. Bad thing is, you end up paying whatever you agreed on, when you got the small loan in Australia, even if the market rates drop.
Types Of Personal Loans
- Secured Personal Loans
Secured loans have backups in case you take too long to pay a loan. These are collaterals that can be taken by lenders for example your house, car or land.
- Unsecured Personal Loans
These loans do not have backups hence lenders feel more at risk than with secured personal loans. Rates range from 5% to 35% with a payment duration of one to ten years.
- Variable-rate Personal Loans
- Fixed-rate Personal Loans
- Co-sign Loans
Where To Get Small Loans in Australia?
Harmoney Unsecured Personal Loan – This company offers unsecured loans of interest rates of 6.99% p.a. and comparison rates of 7.69% p.a. It gives you duration of up to five years to pay back the loan.
Citi Personal Loan Plus – Citi loans you with a variable interest rate of 8.99% and comparison of 9.67% p.a. the loan term of Citi is three to five years.
Rate Setter Unsecured Personal Loan – With an interest rate of 6.35%, you can acquire a loan from Rate Setter. The company has a comparison rate of 8.34% p.a. and loan term of 0.5 to 5 years.
Symple Loans Personal Loans – It has a variable interest rate of 5.99% and a comparison rate of 7.55%. Its loan term is one to seven years.