Personal loan

Service One Alliance Bank Fixed Rate Personal Loan Review and Costs

How does the Fixed Rate Personal Loan work?

This personal loan is secured and comes with a fixed rate. With a fixed rate, your repayments will remain the same for the duration of the loan. This makes forecasting and budgeting easier. You can use a vehicle or residential property to secure the loan. Loan funds can be used to purchase a new or used vehicle, or for personal use.

What are the features of the Fixed Rate Personal Loan?

  • Secure loan. This loan is secured, requiring an asset as collateral. This could be the vehicle you purchased with the loan, an existing vehicle, or residential property.
  • Fixed rate. You are sure to know the amount of your interest repayments. This makes budgeting easier.
  • Terms up to 7 years. The term of your loan can range from 1 to 7 years.
  • Flexible repayments. You can choose between weekly, fortnightly or monthly repayments, depending on what suits you.
  • Limited Additional Refunds. You can make limited additional repayments without incurring a prepayment charge.
  • Ease of redrawing. You can redraw your additional refunds for free.

How much does the fixed rate personal loan cost?

The fees associated with this loan include:

  • Principal of the loan
  • Fixed interest rate of 6.90% per annum
  • $150 facility fee
  • $5 monthly fee

The comparison rate, which includes interest and fees, is 7.50% per annum. You may incur an additional $20 refund fee if you make additional refunds over the limit.

What are the advantages and disadvantages of the fixed rate personal loan?

Advantages

  • Fixed rate. This loan comes with a fixed rate, which makes it easier to predict repayments.
  • Redraw available. You can redraw the additional repayments you have made.

The inconvenients

  • Limited Additional Refunds. You cannot make additional refunds above a certain threshold without incurring a fee.
  • Risk of takeover. Secured loans carry the risk that your asset will be repossessed if you fail to repay your loan.

Am I eligible for this loan?

To be eligible for this loan, you must be over 18 and an Australian citizen or permanent resident. You will also need to provide a loan guarantee.

How can I apply for this loan?

You can apply for this loan online through the Service One Alliance Bank website. The documents you need to provide include:

  • Your last 2 payslips or letter from employer
  • Proof and source of other income
  • Statement of debts, including home loans, credit cards, store cards and other loans

Have the documents handy to facilitate the process.