Hume Bank Personal Loan Review

Determine whether Hume Bank’s personal loan offers are right for you by comparing their key features with those of other lenders with Savvy.

Last updated on May 2nd, 2022 at 11:07 am by Thomas Perrotta

Hume Bank is a New South Wales-based mutual bank, meaning it’s owned by its members, which offers a wide range of services from banking to home loans to insurance to business and more.

However, as far as personal loans are concerned, it’s always crucial to compare as many different loans as possible and delve into all of the features that matter before making your final call.

That’s where Savvy comes in. We’re partnered with reputable lenders from around Australia and are dedicated to breaking down loan offers to make the comparison process simpler for you. Start comparing options today and get the wheels in motion on your application.

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

Hume Bank personal loan features and benefits

Competitive rates from 5.95% p.a.

You can secure an interest rate as low as 5.95% p.a. (6.16% p.a. comparison) depending on the type of loan you apply for, enabling you to save on your deal.

Get approved for upwards of $2,000

Personal loans are designed to be flexible, meaning you can be approved for a smaller finance deal of just $2,000 or apply for a much greater loan for just about any purpose you need.

Borrow with or without security

Hume Bank offers both secured and unsecured finance, giving you options to choose from if you have an asset eligible to be used as collateral for your loan agreement.

Repay over one to five years

Picking the right loan term is important for ensuring you remain comfortable across your term and you’ll be able to choose between terms as short as 12 months up to five years.

Fixed interest across your term

The fixed interest rate charged on your loan locks the value of your repayments in from the outset of your term, meaning you’ll never have to pay at a higher rate.

Free online redraws

If you choose to pay above the minimum required amount, you’ll also have the option to access those funds free of charge down the line via your loan’s redraw facility.

The pros and cons of personal loans with Hume Bank

PROS

No penalties for early repayments

You’re encouraged to save on your loan by having no early repayment penalty set on your agreement, which allows you to pay it off sooner and save on interest overall.

No ongoing fees

There aren’t any added service fees either, so there’s no need to spend any time thinking about expensive charges adding up across your loan term on top of your interest.

Apply online

If there isn’t any access to Hume Bank branches where you live, you can still complete your application online via their web portal, including submitting your documents.

CONS

Application fee

You’ll be required to pay an application fee of $150 as part of your loan agreement, which is lower than what many lenders charge but still higher than others (some of whom waive it entirely).

Shorter loan terms than others

Although you’ll be able to repay your debt over as many as five years, most personal loan financiers enable you to space it out over as many as seven.

Higher rates for unsecured loans

As is the case with most lenders who offer both secured and unsecured finance, you’ll be required to pay a much higher rate for the latter (from 9.95% p.a., 10.17% p.a. comparison).

Hume Bank personal loans explained further

What is the process of applying for a personal loan with Hume Bank?

The personal loan application process isn’t a complicated one to follow, as there are only a few steps to complete along the way. However, before you dive into your application, it’s crucial to compare as many options as possible with Savvy. In doing so, you’ll be in a better position to determine which current personal loan offer is the most appropriate for your needs. You can even use our tools such as our personal loan repayment calculator to give you an idea of how different loan terms, sizes and rates affect their overall cost.

The process of applying with Hume Bank is as follows:

Submit an online application form

Firstly, you can start with Hume Bank’s digital application form. This is filled out so the lender can learn more about you and your financial situation (such as your income, expenses and debts) which will help inform their decision on whether to approve your application. You’ll also share the details of the loan you’re looking to take out and whether you want to provide any collateral.

Provide the required documentation

As part of this process, you’ll need to supply documentation to verify the details of your application. This will likely involve ID such as your driver’s licence and/or passport and evidence of your income, which can come via your two most recent payslips and current group certificate, three months of bank statements relating to any debts being consolidated and two years of financials and tax returns if you’re self-employed.

Receive conditional approval

Once you’ve sent this off, your application can be considered by the lender. It’s at this stage that you’ll be contacted if there are any other documents required for assessment, which you’ll send digital copies of.

Sign your loan agreement and receive your funds

If they’re happy with all of this, you’ll be notified of formal approval and sent a loan contract to sign and return. Carefully review this before sending it off, as it’s important to be across all of the terms, conditions and fine print of your agreement. Upon return, the approved funds can be transferred directly into your nominated account.

Frequently asked questions about personal loans answered

What are the eligibility criteria for Hume Bank personal loans?

The main factors to consider when it comes to loan eligibility with Hume Bank are:

  • You must be 18 years of age or older
  • You must be a citizen or permanent resident of Australia

 

However, there will be other factors which weigh into the ultimate decision, including how much you earn, the nature of your employment and your credit rating. This product also isn’t solely limited to New South Wales and Sydney loan applicants. You can use Savvy’s borrowing power calculator to help you work out a rough estimate of how much you’re likely to be approved for.

Is it better to use a credit card instead?

Whether a credit card is more suitable for you depends on what you need your funds for. If you’re making a singular large purchase, a personal loan is generally a safer bet, as its interest rate will usually be lower and is cheaper overall when it comes to repaying debts over a longer term. However, credit cards (which are a type of credit line) are more useful when you’re looking for flexibility and making smaller purchases you’re able to pay off within the interest-free period.

Should I apply for a loan with a guarantor?

If you have a family member who’s willing and able to act as a guarantor for your loan, they can help you secure a lower interest rate and potentially a better loan deal overall. This is because lenders consider these deals safer, given that they’re essentially secured by a borrower with a strong profile and credit history. If you end up defaulting on the loan, your guarantor will be responsible for paying off the debt, but this isn’t required in most cases. Guarantors are generally parents, grandparents or siblings, so it’s important to not let your loan get in the way of your relationship.

Is there any benefit to me applying with Hume if I’m already a customer?

Not really – while those who bank with Hume, for instance, may not have to submit the same documents, given that they already have them on file, the rest of the application will essentially be the same. That’s why it’s always important to compare finance deals from as many lenders as possible.

Will I be able to apply jointly with my partner?

Yes – most lenders accept joint applications from partners, which are seen as being a safer investment due to the fact that they mostly rely on the incomes of two borrowers, rather than just one. This means there’s essentially a safety blanket if one of the borrowers were to be made redundant, for instance. These loans often come with lower interest rates and higher potential borrowing ranges as a result of the second applicant attached.

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