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 July 3rd, 2024

If you’re one of the millions of people who cycles each week in Australia, you’ll know the importance of having a reliable bicycle. Whether it’s for commuting, sport or fun, a good bike can make all the difference. However, high-quality bicycles can be quite expensive, and not everyone has the means to pay for one upfront. This is where a bicycle personal loan through Savvy can help. With us, you can compare offers from lenders across the country to find the best available loan for your needs. Get started with a free, no-obligation quote today!

What is a bicycle personal loan?

A bicycle personal loan is not a specialised loan product, rather a personal loan that you can use to purchase bicycles and other cycling equipment – or anything else you choose. Taking out a personal loan involves borrowing a certain amount of money – usually between $2,000 and $75,000 – from a lender and repaying it over a set period with interest. The money will be given to you as a lump sum, which you can spend however you like. This could be on more expensive bike models such as road bikes, electric bikes and cargo bikes or on cheaper items like used bikes or cycling accessories and kit. You could also put the fuds towards repair costs or even a cycling holiday.

There’s no obligation for you to put up a valuable asset, like your car or motorcycle, as collateral for your loan, as bicycle personal loans are unsecured products. While unsecured loans offer greater flexibility, it’s important to remember that they tend to have higher interest rates and fees than secured loans.

What are the eligibility requirements for a bicycle personal loan?

To take out a personal loan in Australia, you will need to meet certain eligibility criteria. This includes:

Age: you must be at least 18 years old to take out a loan, wherever you are in Australia.
Residential status: you will need to be an Australian citizen or permanent resident – although some lenders may accept certain temporary visas.
Income and employment: lenders set minimum income thresholds, some from as little as $20,000 p.a., as well as requiring you to have stable employment.
Credit score: most lenders will require you to have a good credit score. You may be able to get a loan with a lower credit score but will typically have to pay much higher interest rates to counteract the risk to the lender.

You will also need to provide documentation during the application process. This can include photo ID, employment contract, bank statements, proof of address and payslips.

How do I compare bicycle finance options?

There are a number of loan options out there, so rather than signing up for the first loan you find it’s important to compare what’s on offer to ensure you can get the best bicycle finance deal available. You should:

Review the eligibility criteria closely

Always check to see that you satisfy your lender’s eligibility criteria. This prevents you from wasting any with a lender or loan you don’t actually qualify for.

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, employment and income.

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.

Look for flexibility in your repayments

Another fee that may be applied to your loan is for early and additional repayments. Choosing a lender that doesn’t impose these fees can be a great way to slash the cost of your loan and give you more freedom in your arrangement.

Ensure that your preferred loan term is offered

It’s crucial that you’re able to make payments at a speed that suits you and your income requirements, so you should guarantee that the term over which you’re looking to repay your loan is offered by your chosen lender.

The 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 can compare unsecured personal loans.

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.

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.

Can I use a personal loan to buy a motorbike?

Yes – you can use a personal loan to buy a motorbike. You may be able to take out an unsecured or a secured loan to cover your purchase. With a secured motorbike loan, the bike itself acts as collateral and can result in lower interest rates and potentially a bigger loan.