The latest lending indicators from the Australian Bureau of Statistics (ABS) saw the value of new loan commitments for fixed term personal finance rise 6.1% in August, following a rise of 6.0% in July 2023.
These figures were partially driven by an increase in the number of fixed term loans for personal investment (8.2%), while loans for road vehicles rose 8.2%.
While many Australians may already be familiar with the general principles of car loans, did you know that you can also take out a personal loan to invest in shares, bonds, or other assets? Depending on your investment strategy, this could prove an effective means of making returns on your investment.
Of course, past performance is not a reliable indicator of future performance, and borrowing to invest could mean you risk losing money if your investments don’t pan out as expected. Even though you may be able to offset some of these losses through negative gearing (it’s not just for property investment), this could potentially leave you in a difficult financial situation. Consider seeking financial advice before you borrow money to invest.
Whatever your reason for applying for a personal loan, it’s important to consider more than just the interest rate on offer. Personal loan interest rates, fees, features and other benefits can all go towards establishing their overall value to you. To help quicken and simplify the process of comparing personal loans, you could consider looking at the Real Time Ratings™ on RateCity, which combine each loan’s cost and flexibility into a single simple star rating.