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?
- 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.
- 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.