Want a personal loan? Smaller lenders want your business

Want a personal loan? Smaller lenders want your business

A host of smaller lenders are fighting for market share with some of the cheapest personal loans in Australia.

Two credit unions – Catalyst Money and Illawarra Credit Union – offer interest rates starting from 5.25 per cent (comparison rate 5.89 per cent) for a $10,000 personal loan over three years (see table below).

An online-only provider, 360 Finance, has personal loan interest rates from as low as 5.49 per cent (comparison rate 6.36 per cent).

Two other lenders have personal loans starting from 5.99 per cent – G&C Mutual Bank (comparison rate 6.20 per cent) and Credit Union SA (comparison rate 6.26 per cent).

Community First Credit Union, Cairns Penny, Police Bank, Newcastle Permanent Building Society and Queensland Country Credit Union also offer low-rate personal loans.

Lender Product Advertised rate Comparison rate Total repayment*
Catalyst Money Online Personal Loan Package 5.25% 5.89% $10,830
Illawarra Credit Union Online Personal Loan Package 5.25% 5.89% $10,830
360 Finance Leisure Finance 5.49% 6.36% $10,869
G&C Mutual Bank Fair Rate Personal Loan Diamond 5.99% 6.20% $10,950
Credit Union SA Special Fixed Rate Personal Loan 5.99% 6.26% $10,950
Community First Credit Union Home Improvement Loan 6.12% 6.39% $10,971
Cairns Penny Secured Loan 6.25% 12.07% $10,993
Police Bank Green Loan 6.49% 6.63% $11,032
Newcastle Permanent Building Society Personal Loan Secured 6.69% 8.41% $11,065
Queensland Country Credit Union Reno Loan 6.79% 7.31% $11,081

 

* Total repayment has been calculated on a $10,000 loan, with no fees, over three years. The repayments would be higher once fees were added.

Please note that the personal loans with the lowest interest rates aren’t necessarily the best personal loans for each borrower. Also, some borrowers won’t be able to qualify for a particular lender’s lowest-rate personal loans.

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Once you’ve compared bank accounts and found the right one, the process of opening a bank account online is quite simple and can be done in around 10 minutes.

To set up a bank account online, you’ll need to prove your identity and provide an approved form of ID as well as your tax file number (TFN).

If you’re a new customer of the bank, you’ll need to verify your identity and potentially upload documents before you can complete your online application.

Once your ID has been verified and you’ve set up your bank account online, you should receive your bank cards in the mail along with your PIN and any other account details.

How can I check my bank account balance online?

Checking your bank account balance online is a simple process. Once you’ve logged in to your online banking, clock on the relevant account and the balance should be visible.

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You don’t need a bank account to send or receive money through PayPal. However, you do need a bank account if you want to withdraw money from your PayPal account.

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Many people find themselves struggling to cope with debt at one time or another. In these cases, a debt collector could contact you to demand payment for a debt, to explain the consequences of you failing to pay a debt, or to organise alternative payment arrangements.

If you’re contacted by a debt collector, you may be wondering what their rights are and whether they can take money out of your bank account.

Creditors cannot access money in your bank account unless a court order (also known as a ‘garnishee order’) is made to allow creditors to recover debt by taking money from your bank account or salary.

If this happens, the creditor can take money out of your bank account unless you pay the debt in full or make an alternative payment arrangement such as paying in instalments through the court.

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If your bank offers online services, you should be able to find your bank account number online by logging into your account on your bank’s website and checking your details there.

Keep in mind that each type of account you have with a bank comes with a unique account number. This means if you have a bank account as well as a savings account, for example, your bank account number and your savings account number will be different.

If you don’t have access to your bank account online or can’t login, you should be able to find your account number on a mailed bank statement, if you have one.

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Can I open a bank account in another country?

Despite having a bad rap for facilitating tax evasion, it is possible and legal to open a bank account in another country, also known as an ‘offshore account’.

Some people choose to open a bank account in another country to invest overseas, for higher interest-earning potential or to access foreign banking services.

The process for opening an offshore bank account differs depending on the financial institution and country in which you’re opening the account.

Typically, you will need to provide identification such as a passport, a local bank statement and a signed declaration proving the source of the money being used to open your account. Usually, deposits into offshore accounts can be made by international money transfer.

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In most cases, you can verify your identity online (at the time of applying) or at the branch afterwards.

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Once you’re logged into your Paypal account, the account balance will appear on your home page. Below your balance are two options:

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Another way to transfer out of Paypal is by jumping to the wallet tab on the top menu, and clicking ‘transfer money’. Both options will give you the same result.

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As the parent or guardian, you’ll also be listed as a joint holder on the account. This means you’ll need to have proof of your identification and address (a driver’s licence, passport, birth certificate or Medicare Card).

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You can wire money to an Australian bank account either through your own bank or by using a money transfer company such as Western Union or MoneyGram. Either way, you’ll need the other person’s name, BSB number and account number. If you use a money transfer company, you might also need to provide the recipient’s address for large payments.

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The basic information you need to deposit money into a third-party bank account is:

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A handy tip is to record yourself (or add a personal message) in the transaction description or reference. This will show up on the recipients account, letting them know who’s paid them the money.

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