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Bank Of Melbourne Personal Loan Review

Consider your personal loan options, including whether a Bank of Melbourne offer is right for you, here with Savvy.

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, updated on May 28th, 2024       

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Bank of Melbourne is another of the wide scope of financial institutions operating on the market in Australia, in this case as a subsidiary of the Westpac Group, and offers a variety of products across different areas.

One of these is a personal loan, so if you’re currently in the market for one and surveying your options, it’s important to know all about its main features when making an ultimate decision on which is best for you.

Fortunately, at Savvy, we break down personal loan offers into simple-to-digest comparison information which helps you make an accurate decision on the loan which is ideal for your needs. Start comparing with us today.

*Please note that Savvy does not represent Bank of Melbourne for their personal loan product.

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The features and benefits of Bank of Melbourne personal loans

Loan rates starting from just 7.49% p.a.

You can secure a rate as low as 7.49% p.a. (8.40% p.a. comparison) on your personal loan, helping your chances of securing a cheap personal loan from the outset.

Borrow from $2,000 to $50,000

Whether you need a smaller loan of just $2,000 or a larger injection of funds of up to $50,000, a personal loan through Bank of Melbourne can do the trick.

Unsecured personal loans

These personal loans come without the requirement for security, meaning there’s no need for you to put your car forward to act as security for the agreement.

Redraws available

Depending on the type of loan you choose, you can access a redraw facility to draw from any additional payments you’ve made over the course of your loan term.

Choose your preferred loan term

You can take as much time as you need to repay your personal loan debt, with terms available as short as one year and as long as seven years available to tailor to your needs.

Pay weekly, fortnightly or monthly

In addition to this, you can decide whether to pay your loan down once per week, every second week or once per month in line with whatever suits you.

The pros and cons of personal loans through Bank of Melbourne

PROS

Choose between fixed or variable interest

It’s important to have the choice between fixed and variable interest rates, as you might want to lock in for better budgeting or leave open for potential savings.

Rapid online approvals

When you submit your loan application, you can receive an outcome as soon as 60 seconds thereafter, granting you fast pre-approvals so you can advance the process.

Use your funds however you like

Because personal loans are designed to be highly flexible, you can use their funds to cover just about anything you need, from consolidating debts to renovating your home.

CONS

Early repayment fees

You’ll be required to pay a $150 fee if you pay out your loan inside its first 12 months on fixed rate loans and $100 if you pay it out before the scheduled conclusion of your loan term.

Establishment and monthly fees charged

A $150 charge for establishing your loan will have to be paid, while you’ll also need to contribute $10 every month as an ongoing service cost, potentially adding up to hundreds overall

Inflexible secured personal loan

Although Bank of Melbourne does offer a secured personal loan product, this is essentially just a car loan which can only be used for this purpose, unlike their unsecured offer.

Bank of Melbourne personal loans explained further

How do I apply for my Bank of Melbourne personal loan?

Submitting your application through Bank of Melbourne isn’t substantially different from other lenders (especially Westpac loans). The process itself is very simple to follow, but it’s still important to have your bases covered when applying and know what to expect. Of course, it’s important to compare different lenders with Savvy before diving into the application process, as doing so is the best way to ensure you’re not paying more than you need to and have access to a range of features, both necessary and useful. The process of applying for finance is as follows:

Gather your documents

Before you apply, ensure you have the following pieces of documentation:

  • Personal ID (driver’s licence, passport)
  • Proof of income (such as payslips, bank statements, Centrelink income statements or tax returns)
  • Outstanding liabilities (loan or credit card debts)
  • Regular expenses (weekly to monthly living costs)
  • Information on assets (such as property, vehicles and savings)

Submit your application and receive a response

With the information you need, you can go ahead and submit your personal loan application via their online portal. This will likely take up to 20 minutes to complete, although it won’t take as much time if you already bank with them. Once you’ve completed this application and sent it off, you can receive a conditional outcome in just 60 seconds.

Verify any further details

If your application was successful, you may be required to verify some of the details in your application. If this is the case, Bank of Melbourne will let you know what information they need from you when pre-approving you to expedite the process. Once you’ve done this, you can send it off once again for assessment.

Sign your contract and receive your funds

With the clarifications they need, your lender can approve your application formally and send a loan contract for you to sign, which will lay out all the terms of your agreement. You can sign this electronically and return it, after which they can advance your approved funds into your nominated account.

What are the eligibility criteria for Bank of Melbourne personal loans?

Eligibility is a factor which is important to consider with any loan you apply for, including personal loans. Every lender will set out clear qualification criteria for their applicants to follow, which will help you find out whether you’re eligible to apply for the personal loan you’re looking for. Bank of Melbourne’s criteria include the following:

  • You must be at least 18 years of age
  • You must be a citizen or permanent resident of Australia or New Zealand or an applicable visa holder with at least one year left to run
  • You must have a verifiable Australian address
  • You must be earning a consistent, stable income

More questions about personal loans answered

Should I use a personal overdraft instead?

A personal overdraft is a facility which can be added to your bank account to enable you to withdraw beyond $0. This makes it different from other types of personal loans, which are separate products in themselves. With Bank of Melbourne, you can be approved for limits of $500 to $20,000 and withdraw from them whenever you like up to your set limit. However, interest rates are higher on this type of finance.

What’s the difference between fixed and variable interest?

Fixed interest rates are locked in from the start of your personal loan, meaning they won’t change across your term. This allows for more accurate budgeting each month and a greater overall sense of financial certainty on your loan. Additionally, these rates are often lower than variable interest, albeit this can change depending on the state of interest rates across Australia. Variable interest isn’t locked in, instead being open to fluctuation which can potentially lead to savings overall (but could also cost more).

How do I work out what my loan will cost?

You can use Savvy’s loan repayment calculator to give you a rough idea of what difference finance offers may cost per instalment and overall. While this doesn’t serve as a guarantee that your loan will end up costing that amount, as you may be approved for a different interest rate or term, it helps you gain a rough idea of the type of financial commitment you’ll likely be taking on. Repayment calculators are very useful in this respect.

How can I increase my chances of being approved for a low-cost personal loan?

There are ways you can go about reducing your personal loan’s interest rate and fees, which mainly comes down to lowering your risk profile. These include:

  • Pay off any outstanding debts
  • Lower your credit card limits and remove/close any lines of credit you don’t need
  • Pay a deposit towards your purchase to reduce your loan size
  • Show a history of repaying similar debts
What are green loans and should I apply for one?

A green loan is a personal loan designed to help fund the purchase of environmentally friendly items or installations, such as solar panels, insulation, energy-efficient air conditioning or appliances. If you’re looking to purchase one of these, some lenders may offer interest rate or fee discounts through their green loan product.

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Compare personal loans today

We’re here to help you find the most affordable options, so there’s no better way to compare personal loans and rates than right here, all in one place.
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