Loans Agencies in Australia: How to Choose the Best One for Your Needs

You’ve probably heard of loan providers like Lazer Money, Money Spot, and Wallet Wizard. But are these the only loans agencies available in Australia, or are there other better options? 

If you’re interested in learning how to choose the best place to get a loan, keep on reading. We’ll highlight the factors you need to keep in mind while choosing a loan agency and how you can find a trusted one. 

What this article covers:

Factors to Consider When Choosing a Loan Agency 

In recent years, numerous loan agencies and establishments have cropped up all over Australia. From traditional banks to private loan companies and even online money lenders, you’ve got so many different sources to turn to. 

Luckily, there are many factors that can make an agency more suited for you than another. So let’s go over some of these factors and see how they will influence your decision. 

loans agencies

Loan Cost

The loan cost is the first thing you should look at when comparing loan agencies.

Each lender imposes their own interest rates, fees, and charges. Some will offer reasonable interest rates, while others will impose the highest possible rates and fees. 

Moreover, some lenders will impose additional fees on the loan contract to cover issues like late payments, extra payments, or early loan exits. 

Typically, banks offer the lowest interest rates, but they don’t accept every client. In that case, you’ll need to check out private loan establishments and use their comparison rates to get an estimate of the total loan cost. 

agencies of loan

Loan Amount 

Loan amounts vary a lot from one loan agency to another. 

For instance, many online lenders offer small personal loans in the range of $300-$5,000. On the other hand, banks only offer $5,000 loans and up. 

Also, online money lenders rarely offer personal loans beyond $50,000, while banks can go up to 100,000 or more. 

So, your choice will ultimately depend on how much money you need and how much you can afford to pay back. 

Eligibility Criteria 

Another thing to consider before applying to a loan agency is the eligibility criteria. 

To give you an example, banks have very strict criteria. They don’t give out loans to bad credit clients or Centrelink recipients. As such, many won’t qualify for a bank loan. 

Private money lenders have much more relaxed criteria, though. Some will accept bad credit or Centrelink clients without batting an eye. There are even money lenders who won’t conduct credit checks before accepting a client. 

Some lenders will even offer loans to self-employed or unemployed individuals. 

Accordingly, you need to thoroughly review loan agencies’ eligibility criteria before putting in an application. That way, you won’t end up wasting your time and money. 

loan agencies

Turnaround Time 

If you’re in urgent need of funds, going to an online loan provider beats going to a traditional bank. 

You see, banks take a long time to review your loan application and supporting documents. This isn’t even mentioning the time you spend waiting in queues to apply or sign your contract. 

That being so, it may take you a few weeks or more before you can access your funds. This isn’t exactly ideal if you’ve got urgent bills to pay. 

Conversely, online money lenders have a short turnaround time. 

Since everything can be verified and processed digitally, you can get the money in as short as a day or two. You send in an online application from your phone or laptop, and that’s it. Even your loan contract will be signed digitally. And that’s why online personal loans are known as the best instant cash loans. 

Loan Conditions

The final thing you should keep in mind when comparing loan agencies is how flexible your loan is. 

For example, are the loan repayment terms adjustable, or are they set in stone? Can you repay your loan early, or must you adhere to the repayment schedule? 

Additionally, are there any restrictions on how you can use the loan money? If so, what can and can’t you use the money for? 

If you don’t like the terms and conditions of a specific loan agency, look for another that better suits your preferences. 

loans agencies australia

How Can You Find a Trustworthy Loan Agency?

Unfortunately, not all loan agencies are 100% trustworthy. Some aren’t even licensed and operate outside the law. 

So, how can you know if a certain agency is reliable? 

Well, the first thing you should do is check out the agency’s AFS licence on the ASIC database. At the very least, this will show that the agency meets the basic standards. 

Still, the agency’s reputation is the most important thing you should ask about. If they’re well-known in the market for being transparent and reputable, then don’t hesitate to apply for a loan.

Here at Orange Loans, we can connect you with plenty of trustworthy lenders. Still, that doesn’t mean you shouldn’t conduct your own research first. 

Conclusion

Loans agencies like banks, private money establishments, and online money lenders are located all over Australia. Each option has its own pros and cons, so you’ll need to decide what matters to you most and what you can overlook. 

Still, whichever loan agency you end up choosing, just make sure it’s trustworthy and licensed. That way, you won’t end up in a scam or unfair contract.

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