Low Interest Loans? Here’s What To Look Out For.
Low interest loans are what everybody is searching for. Why wouldn’t you? Low interest means lower repayments, right? Well, while this is true, interest rates aren’t the only thing borrowers should be looking at. You might be surprised, Jacaranda could provide you with a collateral loan, farm loan, you could even get a loan for bad credit!
What Are Low Interest Loans?
Low interest loans are, as the name suggests, loans that carry a low level of interest. Interest is the cost of taking out the loan, expressed as an annual percentage of the principal loan amount. In other words, the lower the interest rate, the less a borrower will repay.
So, if you have been googling terms like ‘low interest rate loans’, ‘loan money low interest’, or ‘cash loans low interest rate’, chances are you’re in the market for a low interest loan.
What Is A Personal Loan?
A personal loan is a type of loan that can be spent on personal expenses. Borrowers can, for example, spend their personal loan on anything from redecoration costs, education expenses, or to go towards their next vacation. Jacaranda can offer personal loans ranging from $300 to $10,000.
No Interest Loans
If you’re on a low income and looking for a low interest loan, you should be aware of the interest free loan options that may be available to you. If you qualify for one of these loans, you should seriously consider applying. These interest free loans are specifically designed for people on a low income or government benefits, and therefore will be understanding of your situation.
Centrelink Advance Payment
If you are a Centrelink customer and receive certain types of benefits, you may be eligible for a Centrelink advance payment. This is simply an advance on your Centrelink benefits, that is then repaid, interest free, out of your future Centrelink payments. Keep in mind, however, that not all Centrelink customers may qualify. To see if you are eligible, visit The Department of Human Services.
No Interest Loan Schemes
These have been set up as an initiative by some credit providers, to allow low income borrowers to take out interest free loans. These loans can then be used to pay for essential goods, services and medical costs. Again, as these schemes are set up as an initiative, there are eligibility criteria you will need to meet. Earning over $45,000 after tax each year, for example, will disqualify you from the loans scheme.
Find out about the No Interest Loan Scheme.
Before You Search For Low Interest Loans
Before you start searching online for low interest loans, there are a few things you should be aware of.
You will notice that there is a myriad of options for lenders out there. From banks to credit unions, to short term lenders, the options will seem overwhelming. This can, however, actually be a good thing.
The vast array of options gives borrowers plenty of choices when looking for a lower interest rate. By simply doing their research, borrowers are able to find a loan product that best suits their budget and needs.
Check Your Credit Score
In general, having a good credit score will give you a lot more options when looking for loans. If you have a poor credit score, this says to lenders you are a risky borrower, and they may be unwilling to lend to you.
So, to be prepared, you could check your credit score. You are able to use a service like Equifax to obtain a credit report.
Other Things To Consider When Looking For Cash Loans Low Interest Rate?
It may be tempting to focus solely on the interest rate when comparing loans. After all, a low interest rate is a great feature for lenders to advertise. They are, however, other aspects to a loan that should be considered…
The Type Of Loan
Consider whether or not you’re looking for a secured or unsecured low interest loan. Unsecured loans are forms of credit that do not need an asset to be attached as security to the loan.
Attaching an asset like a car, motorbike or boat to a loan, however, reduces the risk posed to the lender. The lender, in turn, may be more willing to lend a larger amount. This is due to the lender being able to repossess a borrower’s asset if the borrower defaults on their loan. So, consider the fact that attaching an asset may allow you to be approved for a bigger personal loan low interest rate.
Your loan interest loan may come with additional features. Having a mobile app for easy account management, for example, may be more important to some borrowers than others. Additionally, borrowers may prefer to access additional funds through a redraw facility. In short, while the interest rate on one loan may be lower, another may have features that are more important to you.
For a lot of borrowers, it is important to have flexibility on their easy loan low interest. For example, to some borrowers, having the ability to top up their loan money low interest may be an attractive feature.
Quick Loans Low Interest Rate
Often, people need a personal loan when an unexpected expense derails their regular budget. In these circumstances, borrowers would prefer low interest loans that can be accessed quickly. Keep in mind that it may be days, if not weeks, between applying for a loan and having access to your funds. Some lenders, on the other hand, may be able to transfer funds on the same day you apply. Processing speeds will vary from lender to lender, and access to funds will also be dependent on inter-bank transfer times.
Different lenders will have different eligibility criteria. In other words, while you may meet the minimum eligibility criteria with one lender, you may be ineligible with another. Be aware of the eligibility criteria before applying, so as to not waste time applying for a loan you’re ineligible for.
Low Interest Rate Loans For Bad Credit
Have you been searching online for terms like, ‘easy loan low interest’, ‘small loan low interest’, or ‘quick loans low interest rate’? Well, if you have bad credit, your options for lenders offering these products may be reduced.
There are, however, many ways of borrowing money if you have a low credit score. While there are lenders that offer bad credit loans, they may charge a higher interest rate. Again, however, this will vary between lender to lender.
Is It Possible To Improve My Credit Score?
Your credit score reflects your level of creditworthiness to lenders. In other words, how likely are you, based on your past financial decisions, to comply with your loan’s terms and conditions. Bad credit is, therefore, a result of poor financial decisions in your past. Often, these decisions come in the form of repeatedly missing repayments and defaulting on other credit.
Improving your credit score is simply a matter of making sound financial choices. You can do this by repaying your bills on time, as well as meeting all the repayments of any debts you may have. In short, there is no quick fix to bad credit. Instead, borrowers will need to work on it consistently over time.
Comparing Low Interest Rate Loans
When you compare low interest rate loans, the interest rate is not the only aspect you should be concerned about.
Fees and Charges
While having a low interest rate on your loan may indeed help you save, borrowers should be aware of the fees and charges on their loan. For personal loans, in particular, keep an eye out for establishment fees, as well as monthly or annual fees. Ongoing fees and charges may end up making a loan more expensive. Therefore, it may be a better idea to compare loans based on their comparison rates, rather than just their interest rate.
A comparison rate helps you work out the true cost of the loan. It reduces the interest rate plus most fees and charges relating to the loan, down to a single percentage figure. Keep in mind, however, that a comparison rate may not include all payable fees and charges.
Most lenders should give you a few options for making repayments. This often comes in the form of being able to make weekly, fortnightly or monthly repayments, on a day that suits you best. Unfortunately, however, not all lenders do. Therefore it is important to check if lenders offer flexible repayment options.
It may also be a good idea to check whether a lender will set up an automatic direct-debit repayment, or if the borrower will need to manage their repayments manually.
Early Repayment Fees
As paying your loan out early may reduce what you pay in total interest, some lenders may charge an early payout fee. Others still, may allow you to make a limited number of early repayments per year, while others may never charge you for making early payments.
Jacaranda Finance provides flexible, personal loans ranging from $300 to $10,000. Jacaranda is able to offer our customers competitive interest rates and fees, as well as a high level of customer service and support. You can get an idea of the cost of a Jacaranda loan, here.
Below is a list of common search terms that have lead customers to Jacaranda, as well as an idea of the loan products we may be able to offer.
Here are the things you need to know about using a balance transfer!
Small Personal Loan
Up to 20% Establishment Fee
+ monthly fee up to 4%
Jacaranda Finance does not charge an annual interest rate on SACC loans. These small amount loans incur 'fees' instead of interest. The maximum comparison rate on our loans between $300 and $2000 is 199.43%.WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate
Loan Amount of $1,000 over 6 months repayable weekly (25 weekly repayments). $1,000 (Principal Amount) + $200 (20% Establishment Fee) + $240 (fees based on 4% per month over 25 weeks) = $1,440 total repayable in 25 weekly installments of $57.60.
Loan Amount of $1,000 over 12 months repayable weekly (50 weekly repayments). $1,000 (Principal Amount) + $200 (20% Establishment Fee) + $480 (fees based on 4% per month over 50 weeks) = $1,680 total repayable in 50 weekly installments of $33.60.
Medium Personal Loan
Annual Percentage Rate (APR) starts at 20.56%
Comparison Rate is 20.56% per annum.
This comparison rate is based on a medium amount credit contract of $2,500 repaid over 2 years with a $400 establishment fee and APR of 20.56%.WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate
Loan Amount of $3,000 over 18 months repayable weekly (78 weekly repayments). $3,000 (Principle Amount) + $400 (Establishment Fee) + $555.83 (reducing interest*) = $3955.83 total repayable over 18 months with weekly installments of $50.71.
Loan Amount of $4,500 over 24 months repayable weekly (104 weekly repayments). $4,500 (Principle Amount) + $400 (Establishment Fee) + $1081.85 (reducing interest*) = $5981.85 total repayable over 24 months with weekly installments of $57.51
Large Personal Loan
Annual Percentage Rate (APR) is 12%
Comparison rate is 19.88% per annum.
Loan Amount of $5,000 over 18 months repayable weekly (78 weekly repayments). $5,000 (Principle Amount) + $1831.16 (Interest) = $6831.16 total repayable over 18 months with weekly installments of $87.57.
Loan Amount of $10,000 over 24 months repayable weekly (104 weekly repayments). $10,000 (Principle Amount) + $5041.72 (Interest) = $15041.72 total repayable over 24 months with weekly installments of $144.63.