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Your personal loans monthly repayments are one of the most important features that you need to check. It will be the difference between finding something that is affordable and easy to maintain, or a constant stretch that can put you at risk of defaulting on your payments. These are three things that you need to know about when it comes to meeting your monthly repayments.
Cash borrowed
The beauty of taking out a personal loan is that it can be used to fund both minor and massive projects. Whether you need a loan to pay for a small course, do minor renovations or finance a wedding a personal loan can get you covered. Personal loan amounts usually range from $4000 to $50,000. This means that the power is in your hands in terms of how much you can take out. It is important to take out what you can afford according to your current financial status to avoid debt.
Most lenders will usually check to see your credit history to see if you will be able to afford the personal loan you are applying for before giving it to you. You need to think of the long-term when it comes to borrowing money, which means also checking if you will be able to afford the interest on the amount borrowed.
Interest rate
When it comes to the interest rate front some Australians fail on consistently checking it. An interest rate plays a huge role when it comes to meeting your monthly repayments. Before you apply for a personal loan you must check its interest rate to find the best competitive deal that is on the market.
The loan market is flooded with 0% interest rate deals that sound too good to be true, but once you check the terms and conditions that come with it you could be in for a costly surprise. 0% interest personal loans are not a ‘no go area’ if you manage meeting repayments on time before the introductory period is over. However, if you know that paying off your loan will take you some time, then its best to stay clear of 0% interest rate personal loans.
Administration fees
The fees that you pay for administration fees are a good indicator in terms of whether you will be able to afford the loan or not. The higher the administrative fees are, the more you can expect to pay when it comes to your monthly repayments. These fees can also be a mark on whether you will be able to save a couple of hundreds which you could use elsewhere.
A personal loan can be the best financial boost that you need to help you achieve your goals. However, when comparing any loan, you always need to check its monthly repayments. There are plenty of personal loan calculators which is a useful tool that can give you a clearer picture of how much you can expect to pay in overall costs before taking on a loan.
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This guide provides general information and does not consider your individual needs, finances or objectives. We do not make any recommendation or suggestion about which product is best for you based on your specific situation and we do not compare all companies in the market, or all products offered by all companies. It’s always important to consider whether professional financial, legal or taxation advice is appropriate for you before choosing or purchasing a financial product.
The content on our website is produced by experts in the field of finance and reviewed as part of our editorial guidelines. We endeavour to keep all information across our site updated with accurate information.
Approval for personal loans is always subject to our lender’s terms, conditions and qualification criteria. Lenders will undertake a credit check in line with responsible lending obligations to help determine whether you’re in a position to take on the loan you’re applying for.
The interest rate, comparison rate, fees and monthly repayments will depend on factors specific to your profile, such as your financial situation, as well as others, such as the loan’s size and your chosen repayment term. Costs such as broker fees, redraw fees or early repayment fees, and cost savings such as fee waivers, aren’t included in the comparison rate but may influence the cost of the loan. Different terms, fees or other loan amounts may result in a different comparison rate.
