What Personal Loan Actually is?
A personal loan is a type of loan provided by financial institutions to individuals for various personal expenses, typically repaid in fixed instalments over a given period of time decided by lender and the individual.
In today’s challenging financial landscape, many Australians are grappling with limited savings and financial constraints. However, there is a viable solution that can transform dreams into reality: the personal loan. With its flexible terms and purposes of use, this loan option has become a sought-after option for individuals striving to fulfil their aspirations. It can be used for a multitude of reasons; these can include debt consolidation, holiday loans, renovations, and even things such as medical needs.
Unlike credit card debt, which often comes with extremely high-interest rates, averaging around 22+%, personal loans provide the opportunity to secure additional funds for special purchases, such as a dream car or a well-deserved vacation. By diligently researching loan options with favourable flexible options, you may find that getting a personal loan is more favourable than you may think.
One of the advantages is its adaptability. Rather than focusing solely on the specific purpose of the loan, we prioritise your ability to repay it; whether you’re planning a home renovation, consolidating debts, or pursuing other personal goals, a personal loan can be tailored to suit your unique needs.
If you’re considering a personal loan and still have lingering questions and uncertainties, rest assured that our team at EZPZ Finance is here to provide the guidance you need. We understand the importance of making informed financial decisions, and we are committed to assisting you throughout the personal loan process.
What is a personal loan used for?
Personal loans are very versatile, providing a range of possibilities to cater to your financial needs. At EZPZ Finance, we understand that everyone’s aspirations and requirements are unique. That’s why we offer a diverse selection of personal loan options to accommodate various purposes. Whether you’re planning your dream wedding, planning a vacation, investing in your education, or renovating your home, a personal loan can provide the necessary funds to turn your visions into reality. Additionally, personal loans can come to your aid during unexpected situations, such as covering emergency medical expenses. When your savings fall short, a personal loan offers the financial freedom you need to pursue your goals and navigate through life’s challenges. Our dedicated team at ezpz Finance is here to guide you through the personal loan process and assist you in finding the perfect solution tailored to your unique circumstances.
What is Secured VS Unsecured Personal Loan
Secured personal loans differ from unsecured personal loans based on the presence of collateral. Secured loans require borrowers to provide an asset as security, such as a home or a vehicle, while unsecured loans do not require any collateral. The presence of collateral in secured loans allows for larger loan amounts and lower interest rates.
In contrast, unsecured loans rely solely on the borrower’s creditworthiness and come with higher interest rates and potentially lower loan limits. Choosing between secured and unsecured personal loans depends on individual circumstances and preferences.
Explore more about Secured VS Unsecured Personal Loan at commbank.com.au
What to choose between personal loans and cash payment
Contemplating between purchasing outright or opting for a personal loan? When making this decision, it’s essential to consider the long-term costs and benefits. One strategy is to evaluate the expense of credit against the potential savings that could be accrued during the same duration.
Personal Loan Example
For instance, if you can secure a favourable payment term on a personal loan and the monthly repayments align well with your budget, it may be advantageous to preserve your savings for unforeseen circumstances or invest in opportunities with higher returns. There are situations where the potential earnings from your savings might outweigh the financing costs, making a personal loan a compelling choice.
How to find the Best Personal Loan Option
Curious about your personal loan options? At EZPZ Finance, our team members are ready to assist you in obtaining that information. By providing a few personal details, we can offer an estimate of your potential loan repayments even before you submit an application. Rest assured; this process is designed to be credit-score-friendly, ensuring that accessing this information won’t impact your credit score. Our aim is to help you assess your options and make an informed decision about moving forward with your loan application.
What is the best Personal Loan Lender for you
Now that you’ve decided to take out a personal loan, it’s time to decide on the right lender. There are many options available, and sometimes this can be a scary field to navigate. That’s why we created ezpz Finance,
However, to make the decision-making process even easier, we’ve created a list of features to be mindful of in a loan:
- Application or monthly fees associated with the loan
- Late repayment penalties
- Collateral to secure the loan
- Fixed or flexible interest rates
How to apply for a Personal Loan if you are self-employed
Self-employed and considering a personal loan? Firstly you should consider the loan for personal or business use, and the structure is very, very different. Rest assured; you are eligible for various options tailored to your needs. Mainstream and specialised lenders understand the unique circumstances of self-employed borrowers. To streamline the application process, partnering with a broker is recommended. They can guide you in gathering the required documentation and meeting the necessary requirements for a successful application.
What document is required for Personal Loan
As a self-employed borrower, applying for a personal loan or business loan requires the submission of several crucial documents, but not all lenders need these documents:
- Tax Returns: Furnishing both personal and business tax returns for the past few years is essential. These returns serve as a fundamental indicator of your income and financial stability.
- Bank Statements: Providing bank statements enables lenders to gain insight into your cash flow and financial transactions, allowing them to assess your capacity for repayment.
- Address Verification: Submitting evidence of your residential address establishes stability and aids in identity verification.
- Rental Income Proof: If you earn rental income from owned properties, including relevant documentation showcases your overall financial situation.
- Shareholdings and Dividend Records: Details regarding your shareholdings in companies and dividend payments received provide lenders with a comprehensive understanding of your assets and income sources.
- Business Information: Providing pertinent information about your business, such as its nature, structure, and financial performance, helps lenders evaluate the overall health and sustainability of your business.
- If you are looking at an unsecured business loan, many of the above options you may not even need to provide to get approval.
At ezpz Finance, we specialise in providing swift and efficient financial solutions to meet your present and future needs. With our commitment to personalized service, we strive to offer the best options, the most competitive deals, flexible terms, and expedited processing. Our goal is to assist you in realizing your financial aspirations with a personal touch and unwavering dedication.
