The Must-Have Guide To Understanding An Unsecured Personal Loan

Types of unsecured personal loans

Personal loans can typically be applied to any situation! As a result, they are your one-stop-shop for all your loan needs. Unsecured personal loans are like beautiful rainbows and every colour represents new opportunities. As a result, they can fund almost any project your heart desires. So, be creative! In addition, check out this handy list of reasons for taking out an unsecured personal loan:

  • Upgrade to the latest tech
  • Pay for an event venue
  • Buy a new or used car
  • Invest in a side hustle

Nifty offers an extensive range of unsecured personal loans, so look over our list and you may find the perfect unsecured personal loan for you:

How to choose an unsecured personal loan

Making decisions can be difficult, especially when it comes to finances. So, here are some questions to ask yourself when you’re deciding on an unsecured personal loan:

  1. Do you have bad credit?

    If you suffer from bad credit, don’t despair, you may still be eligible for an unsecured personal loan. Furthermore, we can’t speak for other lenders, however, Nifty Loans’ vision is to provide all Australians with unsecured personal loans. We don’t just examine your financial past, we take a snapshot of your finances, including your past and present. As a result, we encourage everyone interested in an unsecured personal loan to apply.

  2. Are you purchasing a vehicle?

    If you are considering purchasing a car, new or used, consider an unsecured personal loan to boost your funds.

  3. Do you have a car or home equity you want to use as security?

    If you want to secure your personal loan with equity, you can apply for a secured personal loan. Secured personal loans typically have lower interest rates, as the lender assumes less risk. However, you, as the borrower, risk losing your equity if you default on the loan.

  4. However, are you looking to borrow more than $2,000?

    Nifty loans require security if the personal loan is above $2,000. So, if you would like to borrow more money, make sure you can secure the loan.

So, why choose an unsecured personal loan?

So, are you hunting for flexible repayment options, or simply need cash quickly to fix an explosive leak in your bathroom sink? Then an unsecured personal loan sounds like a match made in heaven. Furthermore, typically a personal loan term is up to 6 months or sometimes 12, depending on the lender.

With unsecured personal loans, repayments are easy and flexible. When you borrow with Nifty Loans, we give all our applicants the option to select weekly, fortnightly or monthly repayments.

Where can an unsecured personal loan take you?

Dreaming of your next holiday or a new car, or maybe popping the question? Are funds (or lack thereof) in your way? That’s exactly what an unsecured personal loan can fix. Repaying your unsecured personal loan doesn’t have to be stressful. In addition, you can simply budget your repayments into your financial planning.

To relieve the stress of budgets and increase your productivity, consider using financial planning apps, such as Mint and or Pocket Guard.

Unsecured Personal Loan vs. Secured personal loan.

Unsecured Personal Loan

An unsecured personal loan is where money is loaned to a qualified borrower without a form of security attached to the loan. This means the criteria for an unsecured personal loan can seem tougher due to the risk involved. Unsecured personal loans can be seen as more of a risk to lenders. Therefore, they tend to come with higher rates but a quicker turnaround time as well as shorter loan terms and all-around convenience.

Comparing an Unsecured Personal Loan and Secured Personal Loans

On the other hand, a secured personal loan, such as a car loan, is where the loan is secured to the asset being purchased with the loan. As unsecured personal loans do not have this, secured lenders have more peace of mind. Whereby, in the situation where the loan repayments cannot be met, the asset can be sold to cover or reduce most of the outstanding loan and costs. Secured loans generally have lower interest rates than unsecured personal loans as they are seen as less of a risk. Furthermore, secured personal loans normally have a longer turnaround as well as a longer loan term than that of an unsecured personal loan.

Nifty and a Unsecured Personal Loan

At Nifty Personal Loans we offer quick unsecured personal loans! We have a highly experienced team of experts who assess every application individually. We focus on your financial circumstances, in particular, commitment levels and affordability.

At Nifty Personal Loan we do not charge interest on our unsecured personal loans, we just have fixed fees and flexible terms. As a result, we pride ourselves on being very transparent and understanding of each applicant’s individual circumstances. Once your unsecured personal loan has been approved and your online contract has accepted, the latest you will receive the funds will be overnight, providing your application has been approved before 4.30pm AEST.

Unsecured or Secured personal?

Deciding on an unsecured loan versus a secured loan really depends on your financial needs. Ask yourself, what is this personal loan for and how long will it take to repay? Furthermore, since the interest rates are typically lower with a secured personal loan, it’s worth considering a secured loan if you’re looking for a longer loan term.

The costs of an unsecured personal loan

The cost of a personal loan will vary depending on whether you choose an unsecured or secured personal loan. With secured personal loans, your interest rates will typically be lower, as mentioned before. However, you will eventually be borrowing more money. With an unsecured personal loan, you can borrow smaller amounts. Such as $300 to book an emergency flight or to fix the broken washing machine.

At Nifty Loans, we believe you should be aware of all costs before signing an unsecured personal loan contract. As a result, we don’t hide our costs in tiny font at the bottom of your loan contract! Furthermore, here’s a basic layout of our unsecured personal loan costs:

  • Loan amount: $300 to $2,000
  • Terms: 3 months – 6 months
  • Establishment fee: up to 20%
  • Monthly fee: 4%

And that’s it! We are 100% transparent about all costs. However, if you have any questions regarding our unsecured personal loans costs, email us here or call us on 1300 471 328. For more inforation regarding general loan costs, head to the MoneySmart website.

What are some unexpected benefits of unsecured personal loans

Quick personal loans may have a bad reputation, with high interests rates and questionable lenders. However, if you put your trust in the right lender that complies with industry standards, unsecured personal loans can be very convenient.

So, here are some unexpected benefits of unsecured personal loans:

  • No risk to your assets (secured personal loan require equity)
  • Easier to obtain
  • Fast application and approval
  • Transparent repayment schedule

So, after learning all about unsecured personal loans, it’s time to decide whether they are right for you. If they are, take a look at Nifty loans and apply today!