Personal loans are either a one-off payment or a line of credit up to $100,000 that you repay over a set period. The loan terms are usually one, three or five years, but they can last up to seven.
Uses
Personal loans are used for a variety of reasons. Most commonly, they are utilised as a way for you to consolidate debt. However, they can also be helpful for other significant personal and home expenses, such as:
- Holidays
- Weddings
- Purchasing a car
- Education fees
- Medical bills
- Buying a new home
- Renovating your current home
- Purchasing appliances or other big-ticket items
Are you eligible?
In general, banks and other lenders approve most people for personal loans. However, people with low income, bad credit or existing loan debt may be subject to higher interest rates, shorter loan terms and smaller loan amounts.
Before you apply
Before you apply for a personal loan, you should calculate if you can afford the repayments. It would help if you also asked yourself the following questions:
- How much can I afford to borrow?
- How often should I make repayments?
- How long should my loan term be? Can I afford to make larger payments to reduce my loan term?
- Do I need a secured or unsecured loan?
- Should I have variable or fixed interest rates? Does my preferred lender offer me a choice?
Before you apply, you should also consult a broker. They can assess your situation and find personal loan options that fit your needs. Mortgage House is a non-bank lender that offers convenient and flexible personal loan options. Whether you need extra funds to catch up on bills, take some time off or do some repairs, we have the right loan for you.
