5 Reasons Why You Should Get a Micro Personal Loan

If you’re looking for a way to finance a small purchase or consolidate your debts, a personal loan could be the perfect solution. This type of loan is designed to help you cover short-term costs or payments.

Several lenders in Australia can offer a micro personal loan with competitive rates and flexible repayment terms. But if you’re still not sure why you should get one instead of other types of loans, we’ll help you decide.

In this article, we’ll discuss five reasons why you should consider getting micro personal loans in Australia.

What this article covers:

Quick and Easy Application

The application process for a small loan, such as a micro-personal loan, is usually quite simple and straightforward. Unlike other types of personal loans, it only takes a day to three business days to get approved.

micro personal loan

Most lenders require you to provide basic information, such as your name, address, income, and employment status. Some lenders may also require you to provide additional information, like bank statements or proof of identity.

Moreover, you can apply online, which means that you can do it from the comfort of your home.

Low Interest Rates

They typically come with competitive interest rates, even for $1,000 loans. Although the rates vary depending on the lender and the loan amount, they’re usually much lower than other types of loans.

For example, Heritage Bank Standard Personal Loan (Unsecured) charges a range of fees, including a $200 application fee and a $5 monthly service fee, with fixed interest rates from 8.49%p.a. and a comparison rate of 9.12%p.a.

ING Unsecured Personal Loan also offers fixed interest rates from 6.99% to 16.99% p.a. It has a comparison rate from 7.20% to 17.22% p.a.

These are comparably lower than payday loans, which have a maximum of 48% p.a.

So, always do your research when applying for loans. Compare them to see which one has the lowest interest rate.

micro personal loan australia

Flexible Payment Terms

Most small loans in Australia offer flexible repayment terms. This means you can choose a repayment plan that fits your budget and lifestyle.

For example, some lenders allow you to choose a weekly, fortnightly, or monthly repayment plan. This makes it easier for you to manage your loan payments and stay on top of your debts.

Some will even offer you terms for up to 36 months. However, this will entirely depend on their evaluation of your application.

Access to Funds Quickly

Suppose you got approved for a $50 loan. You can access the funds as soon as possible via bank transfer.

Usually, lenders will transfer the funds to your bank account within a few days so that you can use the money right away. This makes it easier to cover unexpected expenses or make a large purchase without waiting for weeks or months.

micro personal loan online

Consolidate Your Debts

If you have multiple debts, these loans can be a great way to consolidate them into one easy-to-manage loan. This can help you save money on interest and simplify your repayment process.

For example, some offer a personalised loan from $2,001 to $5,000 with a lower interest rate than your existing loans’ combined interest rates. With that said, it’d be wise to consolidate them, plus it’s more convenient to track your repayment activities.

Also, there are micro loans with no credit check that you can apply to if you have bad credit. Just ensure that you have the necessary collateral to attach since most of them are secured loans.

Conclusion

Micro personal loans can be a great way to finance a small purchase or consolidate your debts. With competitive interest rates, flexible repayment terms, and quick access to funds, it’s no wonder why more and more Australians are turning to this type of loan.

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