Bicycle Personal Loans

Name: Bicycle Personal Loans
Creator: Savvy
Published: 2021-12-16T15:51:25+10:30

Home > Personal Loans > Bicycle Personal Loans

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Written by , updated on October 4th, 2023

The features and benefits of bicycle personal loans

Compare competitive loans

You’ll be able to compare low-rate personal loans regardless of the type of finance you choose, which can enable you to minimise the overall cost of your agreement.

Buy a new or used bike

The nature of personal loans is such that you can use them to purchase a bike (or several bikes) of any condition you like, from brand-new to broken for stripping parts.

Set your repayment schedule

Not only can you choose the term over which you repay your loan (between one and seven years), but you can also decide whether to pay monthly, fortnightly or weekly.

Borrow whatever you need

You can apply to take on a loan for whatever amount you might need, with loan sums beginning from just $2,000 up to the full price of a more expensive model (and beyond).

No loan security required

There’s no obligation for you to put up a valuable asset, like your car or motorcycle, as collateral for your loan, as we compare unsecured personal loans also.

Choose fixed or variable interest

Part of the personal loan process is choosing whether to lock in your interest at the beginning of your finance deal or leaving it open to fluctuation across your term.

Types of personal loan

Unsecured personal loans

With an unsecured personal loan, you can potentially borrow as much as $75,000 without the need to attach any valuable assets, such as your car, as security. These loans are the most widely available and often the quickest, with same-day approval possible.

Secured personal loans

Secured personal loans, on the other hand, make use of collateral. This lowers your risk profile in the eyes of a lender, potentially lowering your interest rate and expanding your borrowing power beyond what you may be able to get through an unsecured loan.

Variable rate personal loans

Variable interest rates remain open to fluctuation during your term. This means you can benefit from decreasing rates and save on your loan if the market heads in that direction, although you’ll also pay more if rates start rising.

Fixed rate personal loans

Fixed interest rates are locked at the beginning of your loan and remain constant throughout your repayments. This acts as a valuable protection against interest rate increases, as your loan will be unaffected, but you’ll miss out on potential drops as well.

Debt consolidation loans

If you’re paying off multiple debts at the moment, particularly those with high interest (such as credit card debts), consolidating them into one payment can not only make them more convenient to manage but also potentially save you money overall.

Travel loans

Looking to take off on a holiday with your family but want to pay it off at your own speed? Travelling can be expensive, so you can distribute the cost of your next trip over a period you’re more comfortable with by taking out a personal loan to pay for it.

Wedding loans

There are so many costs that go into making your dream wedding a reality, from venue hire to catering to dresses and suits and so much more. By taking out a personal loan, you can start planning the big day you want, even if you can’t pay for it upfront.

Renovation loans

Home improvements are desirable for a range of homeowners to help keep their living space fresh and interesting, not to mention increase its value. You can get past the financial hit of renovations with a personal loan paid in instalments.

Self-employed loans

Personal loans aren’t limited to PAYG employees, though. If you’re running your own business, you can still be approved for financing by submitting tax returns and other alternative documents instead of payslips and utilise your funds however you wish.

Student & education loans

There’s a variety of expenses which come with being a student, ranging from the cost of your courses, textbooks and computer to your accommodation. Taking out a personal loan can make these costs more manageable by spacing them out.

Green loans

Some lenders offer green personal loans, which are designed to be used for energy-efficient appliances and products such as solar panel and air conditioning installation in your home. You can qualify for lower interest rates and fees with this loan.

Why compare personal loans through Savvy?

100% free

There's no need to worry about forking out to compare offers. Our service is free, so you can come back whenever you like.

Paperless applications

You won't need to worry about sifting through documents and visiting the post office, as they can all be submitted online.

Reputable lending partners

We've partnered with personal loan companies you can trust to ensure your comparison is a high-quality one.

Top tips for comparing affordable bicycle finance

Review the eligibility criteria closely

Before you begin considering loans, you should always check to see that you satisfy your lender’s eligibility criteria. This prevents you from wasting any time in the comparison and application process with a lender or loan which you don’t actually qualify to take on. In general, you must be at least 18 years old, a citizen or permanent resident and be employed, earning a minimum of $20,000 to $26,000 annually. Borrowers must also hold a clean record when it comes to bankruptcies and defaults.

Always compare interest rates

Interest is likely to be the biggest factor in determining how much your personal loan is set to cost, so it’s crucial that you compare them between lenders. The rate that you’re offered will be different to that of the next applicant, as it’s determined by factors such as your credit score and stability of employment and income. However, you can still gain an understanding of which loans are less expensive in this respect by looking at those which offer less costly base rates.

Assess the fees charged on each loan

On top of your interest rate, you’ll also need to consider whether there are any fees charged on your loan agreement. These typically come in the form of ongoing fees of up to $10 per month and establishment fees of up to $595, meaning that they can potentially set you back hundreds, if not more, over the life of your loan. Fortunately, though, Savvy is partnered with lenders who can either disregard one or both of these fees to help you further minimise the cost of your loan.

Look for flexibility in your repayments

Another fee that may be applied to your loan is for early and additional repayments. While it’s uncommon, some lenders will place a premium on allowing you to pay out your personal loan ahead of schedule. If you’re able to do so without incurring any fees, however, it can be a great way to slash the cost of your loan and add a great deal of freedom to your arrangement.

Ensure that your preferred loan term is offered

Finally, you should guarantee that the term over which you’re looking to repay your loan is offered by your chosen lender. It’s crucial that you’re able to make payments at a speed that suits you and your income requirements, while also looking to cut down on the potential cost of your loan. You shouldn’t simply settle for a length of loan which isn’t overly convenient for you or will end up costing you unnecessary money overall.

Frequently asked questions about bicycle personal loans

Can I use my bicycle as personal loan security?

No – lenders are particular about the assets which are able to be used as security for personal loans and you’ll find that bikes aren’t included in that group the majority of the time. In most cases, collateral will be restricted to more valuable assets such as cars, motorcycles, boats and caravans. As such, if you’re looking to access a secured personal loan, you’ll need to put one of these up as collateral. If you don’t have any of these assets, you’ll need to stick to an unsecured personal loan.

Am I able to use my personal loan for other things in addition to my bike?

Yes – many people take out personal loans for more than one sole purpose. While you might want to dedicate most of the loan to your new bike purchase, you might want to utilise funds to cover some outstanding medical bills or get a leaky pipe under your sink fixed. Alternatively, the bike may only form a small part of the loan’s overall purpose, as you may wish to consolidate high-interest debts to help prevent them from spiralling out of control.

What’s the maximum length of time I can borrow over?

Personal loans enable you to extend your loan term up to as long as seven years. However, whether you’re approved for that length of time will be decided by several different factors, primarily whether you can be trusted to take out a loan with debt to your name for seven years. Long-term loans are seen as being riskier by lenders, so they’re generally reserved for applicants with strong profiles. Lenders also won’t approve loans up to that length if they don’t believe they’re reasonable or worthwhile, such as a seven-year, $3,000 loan.

Does it matter where I purchase my bike from?

No – because personal loans can be utilised in just about any way you like, you don’t need to worry about where you get your bike from. You can use your loan to buy a model directly from a specialist shop, ship it from interstate or overseas or simply use it to buy from your next-door neighbour. This type of financing gives you the freedom to essentially do whatever you like with your approved money.

Can I get approved for a loan if I’m self-employed?

Yes – self-employed workers can purchase a bike with a personal loan in the same way as any other applicant can. Because people who run their own businesses aren’t paid with payslips, you can instead apply with your last two years’ worth of tax returns. If you have these documents, you can have your application approved and be treated the same way as a pay as you go (PAYG) employee.

Should I look for a green loan to buy my bicycle?

You can – a green loan is a product offered by some lenders designed to be used for eco-friendly purchases. These can include installations like solar panels, water conservation systems and further insulation, but bicycles can also be included in this. That’s because they’re obviously a greener alternative to driving your car and can go a long way towards reducing your carbon footprint.