Personal Loan Online

Getting a personal loan in the traditional way can be a real hassle and a giant waste of time. Accordingly, many people in Australia are reluctant to get loans, even though they can be of great help.

But what if we told you it doesn’t have to be this way anymore? Believe it or not, you can now get a personal loan from the comfort of your own home thanks to online loan applications.

So, if this sounds like a thing you’d be interested in, here is everything you need to know about s personal loan online.

What this article covers:

Can Anyone Get Personal Loans Online?

Absolutely. 

Just by submitting an online loan application, you can borrow as much money as you need. You don’t need to meet the lenders or even call them, for that matter. 

But is it really quite so simple, or is there a catch somewhere? Well, let’s take a look. 

personal loan online

How to Get a Personal Loan Online

First off, you need to thoroughly research the available lenders in order to find the best deal. 

Once you do, simply fill out the specified online application. In it, you’ll state your personal information, how much money you’d like to borrow, your preferred loan terms and your repayment schedule. 

The lender will then review your application and contact you to confirm your details. If everything is in order, you’ll receive a loan contract in the form of an email or an SMS. The moment you sign the contract, the lender will initiate the money transfer, with the funds reaching your bank account in a day or two.

Information and Documents Needed for a Personal Loan Application

With your online application, you’ll be required to submit a soft copy of the following items:

  • Method of Identification  (ID / Driver’s Licence) 
  • Employment details 
  • Proof of income (payslip or income statement)
  • 90-day history of your bank transactions
  • Certain personal details, such as your email, address, and phone number

Eligibility Criteria of Online Personal Loans

To get an Aussie personal loan, you simply need to:

  • Be a citizen or permanent resident of Australia
  • Be at least 18 years of age
  • Have had a steady job for the past three months
  • Have an active bank account, email and phone number

online personal loans

How Much Money Can You Borrow with an Online Personal Loan?

Though the amount varies from lender to lender, they allow you to borrow anywhere from $300 to $50,000. Occasionally, a few lenders can go up to $70,000 or more without even needing collateral. 

Now, loans ranging from $300 to $2,000 are considered small personal loans. Such loans aren’t associated with an interest rate; however, they do come with establishment and monthly fees. 

Any loans over $2,000 will have an interest rate and an establishment fee. 

Loans in the $2,001-$5,000 range typically have a lower establishment fee and higher interest, while loans over $5,000 are the opposite. 

Still, rather than your loan amount, your interest rate usually depends on two things:

  • Your loan type (secured vs. unsecured)
  • Your credit score 

The higher your credit score, the more willing a lender will be to lower the interest rate. The same applies if you present the lender with appropriate security. 

Still, that doesn’t mean that online unsecured loans are inherently worse than secured loans. Each has its advantages and disadvantages, and at the end of the day, one will be more suited to you than the other. 

personal loans online

Difference Between Secured and Unsecured Loans Online

A secured loan is when you’re able to borrow money by putting up a valuable asset as collateral. Accordingly, if you ever default on the loan, the lenders can sell your asset to get back part or all of their money. 

Since lenders are pretty much guaranteed to get their money back, they tend to offer larger loans with better interest rates and longer loan terms. 

On the other hand, unsecured personal loans pose a high risk for lenders. As such, lenders usually won’t offer as much money, and their fees/interest rates tend to be much higher. The loan terms also tend to be shorter in order to minimise your chances of defaulting as much as possible. 

As you can probably tell, secured personal loans are cheaper; therefore, they’re better for the borrower. However, that doesn’t mean that unsecured loans don’t have their perks. 

For instance, unsecured loans are fast to acquire. Since the lender doesn’t have to check your assets and assess their worth, you can get an unsecured loan in a day or less. Also, keep in mind that not every person is lucky enough to have a valuable asset to put at stake. 

So, ultimately, it comes down to what’s more important to you. Do you need money urgently, or are you willing to wait a bit for a good interest rate? Are you willing to risk your valuable possession to get better terms, or is this not an option? 

Think about what you want, and choose the type of loan that suits you better. 

online personal loan

How Much Will You Pay for Low-Rate Personal Loans Online?

For small personal loans, you’ll only be required to pay a 20% establishment fee and a monthly maintenance fee of 4%. ‘

No lender can charge you more than this, even if you have bad credit. That’s because all small loans are regulated by the Australian Securities & Investments Commission (ASIC)

So, if you’re borrowing $1,000 to be repaid in 2 months, you’ll end up paying:

  • Establishment fee: $200
  • Monthly maintenance fees: $80 ($40 x 2)
  • Total: $1,280

For medium-sized loans between $2001 and $5000, you’ll typically have an annual percentage rate of around 48%. You’ll also be charged an establishment fee of around $400, though it can be higher or lower. 

Finally, for large sums exceeding $5000, expect an interest rate of around 21.24%. The establishment fee will be a bit more expensive, but again, don’t expect it to be the same among all lenders. 

Note: Some lenders will have hidden charges and fees. Also, some will set ridiculous late and early payment fees. So, don’t blindly trust any online lenders for personal loans you find, and always make sure you read the fine print before signing the loan contract. 

Can You Have Two Personal Loans At the Same Time?

Though not all lenders allow this, it is possible to have two personal loans at the same time. However, keep in mind that this may not be the best way to get extra funds. 

Taking out multiple personal loans in a short period of time can lower your credit score. You’ll also be financially strained since you’ll have multiple loan payments to fulfil. 

So, if the second loan isn’t urgent, it’s best to wait until you finish repaying the first loan. 

unsecured loans online

Can People with Bad Credit Get a Personal Loan Approved Online?

You’d think that the answer would be a definite no, but personal loans for bad credit are actually quite common. 

Ordinarily, banks and other financial establishments don’t give out loans to bad credit clients. That’s because bad credit implies that you’re a high-risk client. Accordingly, they’ll refuse to give you a loan, secured or unsecured, from the get-go. 

However, that’s not always the case with private money lenders. 

Some will still consider you for a loan, no matter how bad your credit is. This is because they believe everyone should get a fair chance. 

So, they’ll check your current financial situation and judge if you’re fit to shoulder the loan repayments. If you are, they’ll send over the loan contract, no questions asked. 

Nevertheless, you can’t deny the risk they’re taking by loaning you the money. So, expect your loan to have higher-than-average fees and interest rates. 

Also, keep in mind that you won’t be able to borrow anything too exorbitant. Most lenders will allow you to borrow up to $5,000, though there may be some exceptions. 

online unsecured loans

Is It Possible to Consolidate Debt Using a Personal Loan?

You bet. Taking out a personal loan to consolidate your debt is a smart move. 

Rather than having to remember multiple loan payment amounts, dates, and fees, it’s much better to roll all your debts into one. 

Not only will it make your situation less stressful, but you can even end up with a less expensive loan in the long run. 

Conclusion 

Getting a personal loan online is as easy as breathing. Simply fill out an online application, submit the necessary documents, and you can have your money by the end of the day. 

Word of advice though: always ensure you’re dealing with a licensed, reputable lender to avoid any mishappenings. If you don’t know how to find such a lender, we at Orange Loans will find him for you. 

Still, trustworthy or not, always make sure to thoroughly review your contract before putting your signature on it. 

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