A Personal Loan is smaller than a mortgage loan but unlike a mortgage is either unsecured or secured against a chattel which means borrowers don’t necessarily have to provide a deposit. Personal loans are also paid off over a shorter period of time – typically 2 to 7 years.
A Personal Loan can be used to pay for expenditures that you need or want, such as weddings, holidays and cars and allows you to have these things now, rather than to wait and save up for.
A Personal Loan is often used to consolidate debts into one single affordable payment. Refer below Debt Consolidation.
Features of Personal Loans:
- Based on your credit history a personalised interest rate is tailored for you;
- Borrow from $5,000 to $50,000;
- A range borrowing terms is available to suit you i.e. 2,3,5 or 7 years;
- A choice of fortnightly or monthly repayments;
- There is normally one setup fee and no ongoing charges.