Interest-free and low-interest loans are, ideally, what everybody is looking for when they need credit. After all, it just makes sense that you want to save as much as you can. While a low-interest rate is a great feature for lenders to advertise, it is not the only thing borrowers should be concerned about.
What Are Low-Interest Loans?
Low interest loans refer to credit that has a low level of interest. Interest is the actual cost of borrowing money, generally expressed as an annual percentage of the principal loan amount. In short, the lower the interest rate, the less a borrower will repay on top of their loan amount.
So, if you’ve been searching online for terms like ‘low interest rate loans’, ‘loan money low interest’, or ‘cash loans low-interest rate’, you’re likely looking for a personal loan low interest.
What Is A Personal Loan?
A personal loan is simply, a form of credit that can be used for personal expenses. So, for example, you could use your personal loan to pay for car repairs, to redecorate the home, or even as spending money on your next holiday.
So, if you’re looking personal loan low interest, there are a few things you should be aware of.
There are a lot of lenders out there, and we mean A LOT.
From traditional lenders like banks and credit unions to smaller credit providers like Nifty, the options can seem endless. While this may seem overwhelming, it can actually play to your favour. The huge variety of lenders means a variety of interest rates. By doing your research, and exploring all the options available to you, you may be able to find the low-interest loans you’re looking for.
Check Your Credit Score
Often lenders that provide low-interest loans products will have a more stringent application process than those that charger higher interest. So, check your credit score to know where you stand. You can get check your credit score with a service like Equifax.
No Interest Loans
Some people on a low income may be eligible for a no-interest loan. You have a few options for a low-interest loan.
If you are receiving certain types of Centrelink benefits, you may be eligible for a Centrelink advance payment. This is simply an advance of your benefits, that is repaid interest-free out of your future Centrelink payments. To see if you’re eligible, visit The Department of Human Services.
No Interest Loan Schemes
Some credit providers have set up no interest loan schemes for people on a low income. These can be used to pay for essential goods and services, as well as medical costs. However, as these schemes are set up as a charity initiative, you will need to meet the eligibility criteria. If approved, you will pay these loans back without incurring any interest. You can find out more about The No Interest Loan Scheme here.
What Else Do I Need To Consider When Looking For Cash Loans Low-Interest Rate?
While it may be tempting to focus solely on the interest rate when looking for low-interest loans, there are other aspects to a loan that you should consider:
What Type Of Loan Do You Need?
Attaching an asset like a car, motorbike or boat to a loan may allow you to be approved for a personal loan low-interest rate. This is due to security reducing the risk for the lender. If a borrower, unfortunately, defaults on their loan, the lender may be able to repossess their asset and recoup their losses.
Extra Features On The Loan
There are additional features that your low-interest loan may come with. For example, having easy account management via a mobile app may be more important to some borrowers than others. Additionally, borrowers may prefer a redraw facility to access additional funds, as and when they need them.
Lenders will differ on their minimum eligibility criteria. So, while you may be eligible to apply with one lender offering low-interest loans, you may be ineligible with another. Therefore it is important to explore the eligibility criteria, before you waste time applying, only to be declined.
For many borrowers, the flexibility on their easy loan low interest may be an important feature. For example, the ability to top up their loan money low interest may be an attractive feature to borrowers.
Quick Loans Low-Interest Rate
If you have an urgent, unexpected expense, you will likely prefer low-interest loans that can be accessed quickly. While some lenders may take days, if not weeks to approve your loan, others can have the funds transferred on the same day that you apply. Processing speeds will vary from lender to lender and access to funds will depend on inter-bank transfer times.
How To Compare Low-Interest Rate Loans
When you compare large or small loan low-interest rate options, there are more things to consider than just the interest rate.
Fees and Charges
While a low-interest rate may indeed help you save, there may be high ongoing fees that may end up making your loan more expensive. For personal loans, in particular, keep an eye out for establishment fees, monthly or annual fees. It may be a better idea to compare loans based on their comparison rates, rather than just their interest rates.
Most lenders should give you the option of making weekly, fortnightly or monthly repayments. Unfortunately, however, not all lenders do. Therefore it is important to check if a lender offers a repayment cycle that fits in with your lifestyle. Additionally, check whether the lender will set up an automatic direct-debit repayment cycle, or if you will need to manage your repayments yourself.
Early Repayment Fees
Some lenders may charge you a penalty for repaying your loan early. Some may allow you to make a limited number per year, while others will never charge you for early repayment. Additionally, paying your loan out early may reduce what you pay in total interest.
Bad Credit Loans Low-Interest Rate
Have you been searching online for terms like, ‘easy loan low interest’, ‘small loan low interest’, or ‘quick loans low-interest rate’? If you have bad credit, your options for lenders may become limited.
The good news is that there are ways of borrowing if you have a lower credit score. There are lenders in the market that offer bad credit loans. It must be said, however, that some bad credit lenders may charge a higher interest rate. Again, however, this will all vary from lender to lender.
How Do I Improve My Credit Score?
Put simply, your credit score reflects your level of creditworthiness to lenders. In other words, how likely are you, based on your financial past, to meet the terms and conditions of your loan. Bad credit is a result of poor financial decisions in your past, namely repeatedly missing repayments and defaulting on other credit.
How do you improve your credit score? Well, put simply, you just need to make sound financial choices. This means paying your bills on time, as well as paying off your other debts on time.
Nifty Personal Loans
At Nifty, we are able to offer a competitive interest rate on our personal loans which can be used to cover a range of expenses, including a weekend trip! Additionally, we’ve designed our loan process to be as quick and easy as possible. In short, applying for a Nifty personal loan shouldn’t take long, and, if you’re approved, we’ll get to work transferring your cash.
Applying for a Nifty loan is as easy as one, two, three:
Step One – Apply
Scroll on up to the top of the page, and enter in your desired loan amount and repayment terms into the loan calculator. Next, click the ‘apply now’ button, and be taken to our application form. Finally, complete the application form and submit.
Step Two – Assessment
Now, our assessment team will get to work reviewing your information. If you apply during normal business hours, you may be able to get an outcome within 60-minutes of applying. Alternatively, if you apply outside of these hours, we’ll get to your application when we’re back in the office.
Step Three – Transfer of Funds
If you approve your loan contract during normal business hours, we’ll try to transfer the funds on the same day. Generally, you should receive your loan within 24-hours of signing your loan contract. This is, however, dependent on when you approved the contract, as well as inter-bank transfer times.
Is Nifty For Me?
At Nifty, we have helped thousands of Aussies find the finance they’re looking for. So, below is a list of some common search terms that have lead customers to Nifty, as well as the loan we were able to provide for them.
|Easy Loan Low Interest||AUD ($)500||✔|
|Small Loan Low Interest Rate||AUD ($)1,100||✔|
|Quick Loans Low Interest Rate||AUD ($)2,100||✔|
Disclaimer: The above examples are for illustrative purposes only. They do not, in any way, reflect the terms or interest rate of your possible loan, or the amount you may be approved for.
Additional Fees and Charges
There may be additional fees and charges payable on your Nifty loan. These will be outlined in your contract, however, if you have any questions regarding the terms and conditions of your loan, please do not hesitate to get in contact. A member of our customer support team will be more than happy to walk you through all aspects of your loan.
Get In Contact
If you have any questions about anything you have just read, you can visit our FAQ page, to see if the answers lie there. Alternatively, you can send us an email via the form on our contact us page, or give us a call on 1300 471 328.