How Do I Get A Personal Loan?
With some companies it can sometimes be a difficult process applying for a loan in New Zealand. But with Quick Loans NZ we try and make it as simple as possible for you. Its really important that you are well informed as to the process of applying for a personal loan and that you seek as much advice as you can.
Here are some practical and simple points to follow when thinking to get a personal loan:
How long does it take to apply for a personal loan?
It can take you only a few minutes or a few to apply for a personal loan. Quick Loans NZ have an online application form that can be done in just a few minutes.
What documentation do I need to supply for a personal loan?
We are required by law to identify you and your physical address under the Anti Money Laundering and Countering Financing of Terrorism Act 2009.
This means that you will need to provide us with photo ID which includes your driver licence or passport. We can verify your identification electronically when you enter your ID numbers and expiry dates on our online form. You may need to send us a photo of the physical document.
Also you will need to verify your address – we can often verify your address electronically and it only takes a few minutes in the background.
When will the money be in my account?
Depending on when you apply, the money could be in your account in a matter of minutes*. During our normal business hours, the process can be very quick. We can provide quick clearance of your funds whereas some lenders will not be able to get the cash to you until the next business day.
Keep in mind that we can get cash to you quick once the loan is approved. We need to be provided certain information from you to approve the loan. If the application time takes longer then it will take longer for the funds to be deposited. * Some banks process money transfers at the end of the day and the money may appear in your account in the evening.
Do you offer unsecured loans?
Yes we do. The maximum size unsecured loan is $2,000.
Do I need to provide Security for a Personal Loan?
What security can I use?
A secured loan is where the borrower provides an asset (the security or collateral) that can be used if the lender needs to take a legal claim over that asset in the event that the borrower does not meet the repayments – this is called defaulting on the loan contract.
Here at Quick Loans we offer both secured and unsecured personal loans. Secured loans can be up to $20,000 but unsecured loans are offered up to $2,000.
What is an unsecured loan?
A personal loan without security is called an unsecured loan. An unsecured loan is where there is no security or collateral required. The lender will offer an unsecured loan to someone who perhaps has had a steady income for a long time and the loan is not too large. If the lender provides a loan like this, they cannot seize assets from the borrower if they do not make their repayment obligations. However, they do have the right to pursue other channels to repay the debt.
What are your interest rates?
Interest is the ‘payment’ or premium you pay for getting an advance of money (loan). The interest rate is expressed as an annual percentage of the money that you owe on your loan. We use that percentage to calculate the interest repayments.
Interest rates can vary depending on the lender and depending on other factors. Factors such as your credit score and whether you are providing adequate security can affect the interest rate on your personal loan. Our interest rates start from 9.95%
Duration of loan
How long you should borrow for depends on two things – how much money you need to borrow and how much you can repay each pay period. Most lenders will give you the option on paying weekly, fortnightly or monthly, depending on your circumstances. Usually this repayment will depend on when you are paid – weekly, fortnightly or monthly.
Quick Loans NZ have an interactive tool called a repayment calculator which helps you to decide how long your long period should be depending on your personal circumstances. The shortest period for repayment is around 6 months and the longest period is around 3 years – bearing in mind that Quick Loans will not penalise you for paying off your loan faster than the contractual period.
What sort of fees can I expect?
Different lenders have very different fee structures, and it is important that you take time to research the options available.
An establishment fee is a one-off fee to cover the costs involved in the processing of the loan application. This includes the credit checks and costs to register security. Our establishment fees can be viewed here.
Administration fees cover the ongoing costs of maintaining a loan file. This can relate to processing payments, generating and sending statements and establishing or changing payment arrangement. This fee can be charged daily, weekly, monthly or annually depending on the lender. At Quick loans the fee is $12 or 15 per month.
Default fees are only charged when a borrower misses payments on their loan. These payments vary depending on how much in dollar terms or how much in terms of time period the borrower is behind on their repayments. There are different types of default fees depending on what is happening. It could be a late payment fee or default interest or maybe there are fees due that are related to the repossession process. Refer to our default fees here.
Early repayment fees
There are certain lenders that may charge an early repayment fee if you want to pay off the loan earlier than the contractual date. Quick Loans NZ does not charge you for early repayment. If you want to repay early and save yourself some interest repayments then that is good for you!..we will not penalise you for this.
If you want to talk to us about applying for a loan please call Quick Loans on 0800 200 275 or simply apply online.
This is not legal advice.
Ash is a professional content writer with extensive experience in business development in the financial services. Ash has founded businesses from the age of 19, including franchising ventures, and working alongside some of the largest retailers in the world.