Personal Loans Shepparton

What You Can Use a Personal Loan For

Common purposes include new and used cars, weddings, travel, home repairs, furniture, medical or dental costs, and education. Lenders will ask what the loan is for, and some won't lend for certain purposes, such as a home deposit. Being clear about your plans from the start helps us match you with a lender whose policy suits.

Secured vs Unsecured Personal Loans

A secured loan is backed by an asset, most often the car you're buying. Because the lender has security, these loans may come with lower rates and higher borrowing limits. The trade-off is that the asset can be repossessed if you can't keep up repayments.

An unsecured loan doesn't require an asset. It's more flexible in how it can be used, but rates are usually higher and limits lower.

You may also choose between a fixed rate, which keeps repayments steady, and a variable rate, which can move up or down. When comparing, look at the comparison rate (a figure that includes most fees to show the true cost of the loan).

What Lenders Look at When Approving Your Loan

Lenders generally consider:

• your credit history and repayment record
• your income and how long you've been in your job
• existing debts, including credit card limits and buy now, pay later accounts
• your regular living expenses
• the loan amount and what it's for.

Every formal application is recorded on your credit file, so applying to several lenders yourself can work against you. We look at which lenders may suit before anything is lodged.

Fees and Features to Compare

Beyond the rate, check for establishment fees, monthly account fees and any penalties for paying the loan off early. Some loans allow extra repayments or redraw; others don't. Terms commonly range from one to seven years. A longer term means smaller repayments but more interest overall, so we'll show you how different terms compare.