Whenever you’re in the market for a personal loan, you want to find the loan with the lowest interest rate.
So how can you get a low-interest personal loan? As there are so many options and loan providers out there, it can be hard to know where to start.
Read on to learn more about low-interest personal loans and how to get one.
Low-interest personal loans: what are they?
A low-interest personal loan is a type of loan that offers borrowers a lower interest rate compared to other types of loans.
This means that you will pay less in interest charges over the life of the loan, ultimately saving you money.
Low-interest personal loans are typically offered by banks, credit unions, and online lenders.
It pays to shop around because some lenders are cheaper than others.
You’re also more likely to get a low interest rate if you have a good credit history.
Which loan providers offer low-interest personal loans?
Low-interest personal loans are offered by a variety of lenders, and the right provider will depend on your situation.
Banks
For many people seeking a personal loan, banks are the first choice, but they can be expensive, with higher starting interest rates than some low-cost lenders.
In addition, banks often have strict criteria for lending money.
You may have difficulty getting a bank loan if you have a bad credit history.
Finance companies and online lenders, on the other hand, often have more discretion when lending money, and some will lend to people with bad credit.
Credit unions
Low-interest personal loans are also available from credit unions.
Their members often benefit from lower interest rates offered by non-profit financial institutions.
As long as you meet certain eligibility requirements and open a savings account, you can join a credit union.
Online lenders
Low-interest personal loans are also available from online lenders.
Since these lenders have lower overhead costs, they often have streamlined application processes and can offer competitive rates.
Please note: make sure an online lender is reputable and trustworthy by doing your research and reading reviews. Always read the terms and conditions and be aware of rates and fees.
How do online lenders compare with banks for personal loans?
Borrowing through an online lender has some advantages, such as lower costs and greater flexibility.
A bank loan can be more expensive than a personal loan. The starting interest rate for a personal loan through the “big four” banks in New Zealand – BNZ, ANZ, ASB and Westpac – is between 13.90% and 13.95%.
Auckland Loans, on the other hand, offers a starting rate of 9.95%.
Banks tend to offer a one-size-fits-all interest rate to everyone, regardless of their circumstances, whereas online lenders offer customised interest rates.
Consequently, if you have a high credit score and disposable income, you may pay more through a bank.
Compared to banks, online lenders offer higher lending limits, such as Auckland Loans.
Auckland Loans offers up to $50,000 in unsecured loans, while banks typically offer up to $30,000.
You can benefit greatly from an additional $20,000 when you are renovating your home, purchasing a car, or consolidating your debt.
Why you should choose a loan broker
Auckland Loans is a loan broker, which means we shop for the best deal from several lenders when you apply with us.
This has the advantage of only requiring one application, but being submitted to multiple lenders at once.
Your credit score can be negatively affected if you apply for too many loans, so you should apply for as few loans as you can.
Our team of experts jumps through the hoops so you don’t have to.
All you have to do is choose the best deal for you, and we will handle the rest. In no time, you’ll have the cash you need, on terms that suit your needs.
Contact Auckland Loans today for a free, friendly chat about how we can help you.
