Personal loans in Adelaide
More than 75 per cent of South Australia’s 1.7 million inhabitants live in the state capital, Adelaide. The city centre is home to many financial institutions and ranks highly in terms of quality of life. Undoubtedly this is helped by the ready availability of finance to support the individual, which is often in the form of personal loans.
How do personal loans in Adelaide work?
You can apply for personal loans from banks and non-bank lenders. Personal loans are more flexible than home loans and can be used for many purposes. Between them, the lenders offer plenty of different types of personal loans in Adelaide, which come with a variety of features. If you have a particular project in mind, however, you need to check the policies of individual lenders and review their terms and conditions carefully to make sure you are eligible for a personal loan from them.
Why do people use personal loans in Adelaide?
Adelaideans use personal loans for many different things. These include providing support for college and university students, making repairs to their homes and buying boats and cars. Some people also use a personal loan for the following:
- Acting as guarantor for a friend or family member;
- Consolidating debts if your lender agrees this is worthwhile risk;
- Dealing with unforeseen emergencies;
- Paying for unexpected medical treatment.
What are the main features?
Certain lenders permit interest-only payments for some or all of the loan period. This means your repayments will be less expensive, which can help your cashflow. However, you will still owe the same amount you borrowed originally at the end of the interest-only period.
Some financial institutions allow you to make extra repayments, enabling you to pay your personal loan off early, but it’s important to check whether there are any restrictions that apply to how often you can do this and by how much you can overpay without being penalised.
Some lenders also offer redraw facilities, a feature that permits you to reclaim extra repayments you have previously made. Again, you need to check if restrictions apply and whether the lender in question charges for this facility.
Your personal loan agreement may also be linked to other financial products, such as transaction accounts, savings accounts and credit cards. This feature offers you a more flexible way to manage your personal finances.
What are the pros and cons of personal loans in Adelaide?
Life in Adelaide, while very good, can be expensive. A personal loan can provide extra funds for important expenses without this causing undue hardship for you or your family. While banks and other financial institutions do have set interest rates and charge fees for some features, due to competition in the personal loans market it’s often possible to negotiate these with your lender and get a better deal.
To avoid getting into debt, don’t borrow more than you can afford to repay; make a thorough comparison of your options before you choose a loan provider to identify the product that best suits your needs.