What Are Your Options for Getting Loans In Australia?
In this post, we’ll answer that question by laying out your options. The type of loan you want and the amount of money you need may dictate which loan firm you choose – whether you go with a bank or private lender – but you’ll have a clearer picture of your options.
Borrowing from Family Or Friends As An Alternative To Finance
If you only need a small loan, an alternative to getting finance might be to simply ask a friend or family member if you can borrow the money from them. The greatest advantage is you won’t be paying any interest on the loan (not likely, anyway).
The downside is it can feel awkward owing money to someone you know personally, especially if you struggle to pay the money back in a relatively quick time.
The Banks Are An Obvious Choice
Going to a bank when you need a loan of some description is often the first option for many people. Generally speaking, people will first try with the bank they do their banking with as that’s where they have a track record.
Banks offer so many different finance options, so there’s usually a loan to suit most peoples’ needs. If for some reason one of the loan options doesn’t suit you or you don’t qualify, you then have the alternative choice of applying for a credit card. While interest rates are usually higher than most loans, a credit card is still a handy option when you need to borrow money. One major advantage is you don’t have to spend the total credit limit. You can just use what you need.
When people are shopping for a Home Loan, the big banks seem to be the finance company of choice. There is a lot of competition among lenders when it comes to the Home Loan market, so even if the banks seem like they stand out from the crowd, it’s worth shopping around to see what other lenders might be offering.
Credit Unions Are Another Option
Some people prefer to go with credit unions for their banking and finance, as many believe they receive better customer service, higher interest on deposits, and lower interest rates on loans. Credit unions are definitely worth serious consideration when searching for a loan that suits your circumstances.
One downside to credit unions is they don’t offer as many finance options as the big banks do, so it’s possible they may not have the right loan for your requirements. There also aren’t as many branches, so convenience could be a factor.
A Private Lender Might Suit You Better
A private lender is another form of loan company in Australia. While these lenders might not be as prominent as the big banks, they do offer some distinct advantages that make them worth a look.
For starters, to give themselves a major competitive advantage, private lenders focus on simplicity and speed when it comes to all of their financial products and the application and approval process.
Fast cash loans are one form of finance private lenders excel at. A fast cash loan is essentially a Personal Loan and often you can have your application approved and the money in your account on the same business day.
Another competitive advantage with private lender loans is you can borrow smaller amounts, rather than committing yourself to thousands of dollars if you don’t need that much.
Read also: Pros and cons of private lender
Then there is also the Pawn Loan option. Not all private lenders offer Pawn Loans, but the ones that do will generally lend you money against a percentage of the market value of your car, boat, motorbike, luxury valuables such as jewelry, and more.
Pawn Loans are worthwhile when you may not have a good credit score or you’re looking for more guaranteed finance.
This article has touched on the best options in Australia for a loan. The type of lender you choose will be decided by what’s on offer, how much money you need to borrow, and how quickly you need the cash. Remember to always research outside the top 4 banks and look into what private lenders can offer you. They are likely to give you a simpler and hassle-free application process, so you can get cash in your account faster.