What You Need to Know About Low Rate Personal Loans
When looking for a personal loan, it’s important to find one with the lowest interest rate available. This reduces your loan repayments, making it more affordable for you. However, with many different options and loan providers available, it can be challenging to figure out where to begin.
Keep reading for information on low-interest personal loans and how to get one. Before making a decision, consider all your options. Here are some reasons why short-term loans can be problematic, and what to consider instead.
What are low rate personal loans?
A low-interest personal loan typically features a reduced interest rate when compared with other loan options.
This results in lower interest charges throughout the loan term, meaning potential savings for you.
Low-interest personal loans are commonly available from financial institutions like banks, credit unions, and online lenders. But that doesn’t necessarily mean they are cheaper than online lenders like Loansmart. More on this later.
It is advisable to compare prices when shopping for loans, as some lenders offer better rates than others.
If you have a good credit history, you are more likely to receive a low-interest rate. People with bad credit can still get a personal loan, but the lender may charge a higher interest rate because of the increased risk.
Secured loans can also be cheaper than unsecured loans, as there’s less risk associated with them for the lender.
You can use a low rate personal loan for whatever you need the extra cash for, whether it’s for a new car, living expenses, medical expenses, or anything else you need.
What loan providers offer low interest loans?
Various lenders offer low rate personal loans, and the best provider for you will depend on your specific situation.
Banks
When looking for a personal loan, banks are a popular option, but they may have higher starting interest rates compared to some low-cost lenders.
Furthermore, banks typically have strict requirements for loan approval. Individuals with a poor credit history may face challenges obtaining a bank loan.
Finance companies and online lenders may have greater flexibility in lending decisions, including the possibility of offering loans to individuals with poor credit histories.
Credit unions
Low-interest personal loans are offered by credit unions as well. Members frequently receive advantages from non-profit financial institutions, such as lower interest rates.
Individuals can become members of a credit union by meeting specific eligibility requirements and opening a savings account.
Online lenders
Online lenders also offer low-interest personal loans. However, not all offer low rates. Due to their lower overhead costs, these lenders typically have simplified application processes and can provide competitive rates.
Before choosing an online lender, it is important to conduct research and read reviews to ensure they are reputable and trustworthy.
Loan Direct is a trusted online loan provider that specialises in connecting Kiwis with fast, low-cost loans that help them reach their financial goals.
What are the differences between online lenders and banks when it comes to personal loans?
Borrowing from an online lender offers advantages like lower costs and increased flexibility.
When comparing bank loans to personal loans, it is important to note that the starting interest rates for personal loans through the “big four” banks in New Zealand – BNZ, ANZ, ASB, and Westpac – range from 13.90% to 13.95%.
In contrast, Loan Direct has a starting rate of 9.95%. Online lenders also typically have more flexibility on the interest rates they can charge.
Banks typically offer standardised interest rates to all customers, while online lenders provide personalised rates based on individual circumstances.
Individuals with a high credit score and disposable income may incur higher costs when obtaining a loan through a bank.
Online lenders, like Loan Direct, may also provide higher lending limits than traditional banks. Loan Direct offers higher loan amounts, up to $75,000 in unsecured loans, compared with banks, which typically offer up to $30,000.
An additional $20,000 can provide significant benefits when renovating a home, buying a car, or consolidating debt.
If you need to borrow more, secured loans are also available. A secured loan is when something you already own – like a car or a house – is put up as security against your loan, reducing the risk to the lender.
Find out how much you could borrow with our online loan calculator.
Benefits of using a loan broker
Loan Direct is a loan broker, which means we put your application in front of multiple lenders to find the best deal for you.
This method has the benefit of only needing only one application. Applying for multiple loans can potentially harm your credit score, so it is advisable to minimise the number of loan applications you submit.
Customers can select the best option for their needs, and our team will take care of the rest to ensure a quick and easy process for obtaining the necessary funds with favourable terms.
The best part about getting a loan online is there’s no paperwork. We make the process so easy with our fully digital process, leaving you free to get on with your day while we do the hard work of finding you a great low-cost loan.
Fast, friendly service is what you can expect from Loan Direct. You can count on us to find a great deal for you.
Contact Loan Direct today for a free chat about how we can assist you.
Why choose Loan Direct
Loan Direct provides more than just personal loans. We also specialise in debt consolidation loans, so you can combine your existing debt into one new low-cost loan.
This is a great option because instead of making multiple loan payments, you make just one monthly repayment. You can also do weekly payments if that works better for you.
Loan Direct also provides car finance loans, same day loans and bad credit loans.
Loan Direct is passionate about helping you get on top of your personal finances. We offer a range of finance options to make it easy for you to achieve your goals.
