RateCity.com.au
powering smart financial decisions
RateCity.com.au

Plenti to love about exclusive low-rate personal loan

Plenti to love about exclusive low-rate personal loan

Online-based personal loan lender, Plenti, has announced a reduction to their personal loan rates exclusively for RateCity customers with excellent credit scores.

The new low rate, which starts from 5.48 per cent, is now the lowest unsecured personal loan rate on the market (excluding green loans). Customers can borrow from $2,000 to $50,000, depending on your financial needs and budget.

Plenti is a technology-led personal loan provider, which offers financing solutions for borrowers looking for car loans, renovation loans, personal loans, and debt consolidation loans.

On a hypothetical $5,000 personal loan over 3 years, this would see borrowers making repayments of $151 per month, or $5,434 over the life of the loan

Repayments on 3-year personal loan

Loan amountRepayments per month
(Plenti)
Total cost over life of loan
(Plenti)
Repayments per month
(big four bank avg. rate)
Total cost over life of loan
(big four bank avg. rate)
$5,000$151$5,434$158$5,702
$10,000$302$10,867$317$11,404
$20,000$604$21,735$634$22,809
$30,000$906$32,602$950$34,213

Note: Data based on average unsecured big four bank rate of 8.74% (including minimum rates from NAB and CBA) and Plenti rate of 5.48% over 3-year term. Figures based on hypothetical example not including any upfront or ongoing fees or potential rate changes. Data accurate as of 13.05.2021.

When compared to the average personal loan rate offered by the big four banks (8.74 per cent), this offer from Plenti may see borrowers save hundreds, even thousands, of dollars in interest, depending on the loan amount

The offer is only available for a limited time and is exclusively for borrowers with excellent credit scores.

Lenders rewarding excellent credit scores

It’s not uncommon for personal loan lenders to offer more competitive interest rates to customers with excellent credit scores. This is because a credit score is an indicator of your creditworthiness, and the greater the score, the less chance the borrower has of defaulting.

Due to this reduced risk, the lender can trust the borrower with a lower interest rate, as it's less likely that they may not be able to service the loan so lenders don’t need to charge more to ensure it's repaid.

There are a range of events and factors that can influence your credit score and may be reflected on your credit history for several years, including:

  1. Money you borrow
  2. Repayments on financial products, such as credit cards, personal loans, car loans, home loans
  3. Repayments on utilities, such as energy bills, gas bills and phone plans
  4. Credit applications
  5. Debt agreements
  6. Defaults
  7. Bankruptcy

If you’re considering taking out a personal loan but are unsure if your credit score is up to scratch, you may want to check your score right now. It’s vital you regularly check your credit score and credit history for inaccuracies.

Did you find this helpful? Why not share this news?

This article was reviewed by Personal Finance Editor Georgia Brown before it was published as part of RateCity's Fact Check process.

Advertisement

RateCity

Related news