Personal loans in Melbourne
Together with Sydney, Melbourne is a major contributor to the Australian economy. Strong employment growth across several sectors has made the city increasingly prosperous, and two of the big four banks in Australia have their headquarters in the city. So, if you’re looking for a personal loan in Melbourne you can rest assured the financial sector means you’ll have plenty of options to choose from.
How do personal loans in Melbourne work?
Financial institutions offer a range of personal loans in Melbourne so there is plenty of choice if you’re looking to borrow money. Personal loans are more flexible than home loans, in that they can be used for a variety of purposes. When seeking support for a major purchase or debt consolidation, for example, your first step should be to check the policies of the various lenders to identify those willing to offer you suitable loans.
Why do people use personal loans in Melbourne?
Melburnians have plenty of options when it comes to choosing the right lender for a personal loan, and residents of the second most-populous city in Australia commonly use personal loans for the following:
- Buying a new car;
- Consolidating debt;
- Unforeseen financial emergencies;
- Making essential home repairs;
- Paying unexpected medical bills;
- Supporting a student.
What are the main features?
Your personal loan agreement may include several optional extras, such as linking your loan with other financial products like credit cards, transaction accounts and savings accounts. Personal loan features will differ from lender to lender, so ask if any specific facilities you wish to be included in your loan are available.
For example, in some cases you can make extra repayments, over and above the minimum repayment amount set by your lender, allowing you to pay off the loan more quickly, thereby saving yourself money in terms of interest. Often linked to this is a redraw facility, allowing you to reclaim some of your overpayments if required. However, you need to check with each lender you’re considering if they place any restrictions on overpayments and reclaiming, and if they charge you extra for doing either.
Some lenders will sanction a personal loan for purposes such as paying medical bills, but will reject applications for intents such as debt consolidation. It is always best to check your lender’s policies before making an application to ensure you’re not wasting your time.
What are the pros and cons of personal loans in Melbourne?
City life can be expensive, especially if you have a growing family or you are supporting a college student, and sometimes you need a little extra money due to unforeseen circumstances. A personal loan offers you the opportunity to get the help you need to cope.
Always make sure your personal loan repayments are affordable, because if you miss them you will get into debt, which may then cause cashflow problems for you or your family. By comparing all the options available, and all the features of any loans you’re considering, you will be able to make a sound decision.