The ins and outs of the personal loan market
If you’re new to the personal loan market you may be interested in learning how it all works. These days, getting a personal loan is much easier. You can apply for a personal loan 100% online and you can even receive your loan within the same day of applying.
In the past, applying for a personal loan involved going to a bank in person, presenting your case to an account manager. You would then have to wait several days to receive the result of your application, let alone receive the actual loan itself.
This is the total opposite of how getting personal loans is done these days. The only problem is that these days there are so many lenders in the loan market that it can be hard to choose which one to go with. You’ll be pleased to know that at We Find Loans, we do our best to find you a lender that can offer you quick loans. In this article, we’ll tell you everything you need to know about the Loan market. Let’s dive into some useful info!
Is there a personal loan market?
There definitely is a personal loan market, with a lot of competition amongst lenders. There are banks who offer personal loans, but there are also plenty of online lenders too. In can all be overwhelming, with hundreds of lenders to choose from. That’s where we come in, we can find you a lender that can offer personal loans when you need it quickly.
I’m new to the personal loan market, what do I need to know?
If you’re new to the loan market there are a few things to keep in mind. When looking for a lender one of the most important things to look out for are the fees and charges associated with loan. So, before you sign a contract, make sure you look over all the possible loan costs.
Most online lenders will have fixed monthly rates. This is the best way to go because you know exactly what your loan is going to cost you. Whereas with some banks personal loans can have variable interest rates which means your repayment amounts can be dependent on fluctuations within the market.
What types of personal loan are there?
Personal loans online are usually unsecured loans. This means they do not require an asset to be tied to the loan as security. Lenders of this type of loan just need to check that you receive a regular income and depending on how much you want to borrow they may ask to perform a credit check. Unsecured loans usually have higher rates, as they are considered riskier.
How do I apply for a personal loan?
The best way to apply for a personal loan is online. For instance, at We Find Loans, you simply jump online and fill out an easy online application form. You just need to tell how much you want to borrow and over how long you wish to repay it.
In addition, you just need to some extra info like bank account details, MyGov info (if you’re receiving Centrelink), which will be explained below.
What do I need to apply for a personal loan?
To apply for a personal loan in the loan market you need to provide a few documents to support your application. Here is a list of what you need to show:
- You are over 18
- You are an Australian resident or citizen
- Receive regular income for at least 90 days
- Have a mobile phone number and email address
These prerequisites can be shown using 100 points of ID as well as with bank statements or payslips.
How long does it take to get approved for a loan from a bank?
If you apply for a personal loan with a bank through the general offline process it can take up to 72 hours to receive approval. Then it can take up to 5 days to receive your funds, depending on how it takes to review your documents. On the other hand, if you apply online for a personal loan from a bank, it may only take up to 2 hours to receive approval and up to 2 days to receive your loan.
How long does it take to get approval for a loan from an online lender?
In contrast, if you’re approved for a loan from an online lender could take up to 1 hour to receive approval and up to 24 hours to receive the loan itself.
How much can I borrow on a personal loan?
The amount you can borrow with a personal loan varies. With online lenders, you can get small, shorter-term loans from between $500 and $2,000 repaid over a period of between 3 to 6 months.
What is the best personal loan company?
It is hard to know which lenders will be best to choose, especially if you are new to the loan market. The personal loan market is crowded now which means there are many personal lenders to choose from and making this decision can be challenging. That’s why you have us! We can find lenders on the loan market that may have these qualities:
- They are transparent with their fees and charges
- Terms and conditions of loan contracts are clear
- They don’t approve more than you can afford
Nevertheless, at We Find Loans, we do the searching for you. We compare lenders to find the best possible personal loan out there. If you’re not happy with your lender, you are under no obligation to accept your loan contract.
Terminology to look out for about the loan market?
| Lender | Financial institution that provides the loan. Could be a bank or online lender. |
| Loan Term | Refers to the period over which the loan is repaid. |
| Variable rate | A rate of interest that varies depending on the market |
| Fixed rate | The refers to a rate that is fixed to a certain amount. |
| Unsecured personal loan | A loan that is not secured by an asset. |
| Secured personal loan | A loan that has an asset tied to it such as vehicle or property as security for lenders. |
Overall, the personal loan market can be easy to navigate if you know what to look for or you have a loan pal on the look for a lender who can offer you a loan. There are many online lenders out there so it can be very difficult to determine who will be best to go with.