Friendly Finance is a lender-finder. We do not offer financial advice when it comes to low interest loans. Consider seeking independent legal, financial, taxation or other advice to check how the information and ideas presented on this website relate to your unique circumstances.
Initially, interest rates seem the main point of difference when comparing loans. After all, low interest loans means lower repayments, right? Well, while this is true, there may be other features that suit your circumstances more than others.
Friendly Finance is your local lender-finder, here to give you the rundown on what else to consider when comparing loans. Friendly could even offer you a very quick loan today!
What Are Low Interest Loans?
Low interest loans refer to personal loans with a low level of interest. Additionally, interest is the cost of borrowing money, expressed as an annual percentage of the loan amount. The lower the interest rate, therefore, the less the borrower will repay on top of their loan.
So, if you’ve been searching online for ‘small loan low interest rate’, easy loan low interest’, or ‘cash loans low interest’, you are likely looking for the lowest interest rate possible. There are, however, other loan features that should be considered when applying for a loan.
Before we start exploring low interest loans, we had better introduce ourselves.
We’re Friendly Finance, your new online guide through the world of consumer finance. Our mission is two-fold. Number one, we want to provide Australian consumers with the information they need on the most common consumer finance products. Secondly, we provide a free lender-finder service, to help consumers reach a market of lenders through one, simple application.
How To Find Personal Loan Low Interest
A personal loan is a form of credit that can be used for a variety of personal expenses. In other words, you could spend your personal loan on anything from car repairs, new whitegoods for your home, or even have it go towards your next holiday.
Before searching for a personal loan low interest rate, however, there are a few things consumers should be aware of:
Number of Lenders
The sheer number of online lenders offering low interest rate loans can, initially, feel overwhelming. You can, however, easily take advantage of the myriad of lender options.
A variety of lenders means a variety of interest rates. If consumers are willing to spend their time researching and comparing lender options, they stand a good chance of finding the low interest loans they’re looking for. Additionally, comparison websites like finder.com.au, can be a great tool to easily compare lender options.
Know Where You Stand
When looking for low interest loans, consumers will notice that lenders can often vary greatly in what kind of eligibility criteria they will need to meet.
Often, meeting a certain level of creditworthiness will be necessary for approval. Therefore, it may be worthwhile to check your credit score before you start comparing low interest loans. Consumers are able to get a copy of their credit score through Equifax.
Additionally, having an asset like a car, motorbike or boat to attach as security may increase your chances of being approved for cash loans low interest rate. Secured loans can often have a lower interest rate than unsecured loans. Borrowers must, however, have the vehicle registered in their name.
No Interest Loans
Some consumers on a low income may be eligible to qualify for a variety of interest free loan programs. So, before you start searching online for terms like ‘loan money low interest’, or ‘easy loan low interest’, examine the options available to you.
Centrelink Advance Payment
If you are receiving certain Centrelink benefits, you may qualify for a Centrelink advance payment. As the name suggests, this is simply an advance of your benefits, that is repaid interest free out of your future Centrelink payments.
If you are on low income and are receiving Centrelink benefits, an advance payment may be a better option that low interest loans. After all, missing repayments on a small loan low interest rate, can quickly lead additional fees and charges that may compound.
You can see if you’re eligible for no interest loans, visit The Department of Human Services.
No Interest Loan Scheme
The No Interest Loan Scheme is an initiative providing interest free loans for people on low income. The loans can be used on a variety of expenses, from household items, medical bills and education essentials.
If you earn under a certain amount, you could apply for The No Interest Loan Scheme. If you’re approved, you will be able to repay the loan interest free. You will, therefore, only repay the loan principal.
Looking For Low Interest Loans? Consider The Following:
While a low interest rate is an attractive feature for a lender to advertise, it is not the only thing consumers should consider. There are, indeed, other aspects to a loan that borrowers should take into account when comparing lenders:
Loan Features for Low Interest Loans:
There are additional features that your low interest loan may come with. For example, having a mobile app that allows easy account management may be an important feature for some borrowers. Conversely, some borrowers may be more concerned with having the ability to access additional funds through a redraw facility.
Research what features a loan product has, and weigh up what is important to you as a borrower.
Most lenders should give consumers the options of making repayments on a weekly, fortnightly or monthly schedule. Some lenders, however, may not offer such flexibility. Therefore, it may be important to check if a lender allows you to fit your repayment schedule in with your lifestyle.
Additionally, check whether the lender sets up repayments via automatic direct debit. For some consumers, direct debit is the preferred method, while for others, manually handling repayments may be preferable.
Early Repayment Fees
Some lenders may charge you an ‘early repayment adjustment’ fee if your loan has a fixed interest rate. Some, additionally, may allow you to make a limited number over a period of time, while others still, will never charge you for early repayments.
It is important, therefore, for borrowers to weigh up what features are important to them. Also, keep in mind that paying your loan out early may reduce what you pay in total interest.
Quick Loans Low Interest Rate
If you are searching for low interest loans to cover an unexpected expense, you may value a loan that, once approved, can be accessed quickly. The loan process with some lenders may take days, if not weeks from application to access of funds. On the other hand, there are lenders that offer quick loans low interest rate.
Lenders with offering quick cash loans could, in some cases, transfer your funds on the same day you apply. Keep in mind, however, that access to funds will also depend on inter-bank transfer times.
Comparison Rates For Low Interest Loans
While it may be initially tempting to compare loans on their interest rates alone, comparison rates generally present a truer reflection of the total cost of a loan.
A comparison rate is calculated by reducing to a single percentage figure, the interest rate plus most of the fees and charges associated with a loan. Therefore, a comparison rate is a helpful tool that allows consumers to compare loans from different lenders.
Below is a rough example of how a comparison rate is calculated:
Disclaimer: The above amounts are for demonstrative purposes only. They do not, in any way, reflect the rates by which you may be charged on a future loan. Rather, this is a simple demonstration of how comparison rates are calculated.
|Interest Rate||Fees & Charges||Comparison Rate|
Friendly Finance’s Lender-Finder Service
Friendly Finance offers a lender-finder service which allows consumers to reach a market of lenders through one, simple application. In short, we search the market, so you don’t have to.
In other words, instead of spending hours searching online through different lender options, you can simply make one application through Friendly Finance. We’ll then search through our network of lender-partners, to find an available credit provider who may be able to assist.
If you’re interested, here’s how you can apply:
To begin, simply scroll on up to the loan calculator at the top of this page. Next, enter in the loan amount you’re thinking of borrowing, and click ‘Apply Now’. You’ll now be taken to our online application form.
Once you’ve completed the application form, our banking-technology sorts through hundreds of loan products to find you an available lender. We should, within minutes, let you know if we’re able to match you with a lender. From there, your new lender should be in touch directly.
You should now be dealing with your lender directly. They’ll send through a loan contract for you to carefully review, and if you’re happy with the terms, approve and send back. Once you’ve approved your loan contract, the lender should transfer your funds. Access to funds, however, will depend on inter-bank transfer times.
Is Friendly Finance For Me?
We believe that numbers don’t lie. Don’t believe us? Well, consider the 60,000 loans that our customers have been approved for.
We have people apply with Friendly Finance for all sorts of reasons. Below are some popular search terms that have lead people to Friendly Finance, and eventually to our lender-finder service.
|Small Loan Low Interest Rate||AUD ($)400||✔|
|Easy Loan Low Interest||AUD ($)1,000||✔|
|Low Interest Rate Loans||AUD ($)1,600||✔|
Disclaimer: The above amounts are for illustrative purposes only. They do not, in any way, reflect the terms of your loan nor the amount which you may be approved for.
Additional Fees and Charges of Low Interest Loans
There may be additional fees and charges payable on your future loan. These will, however, be outlined in your loan contract prior to approval. If you do have any questions regarding the terms and conditions of your loan, you should get in contact with your lender directly. Usually, they should be able to answer any questions you may have.
It is important that borrowers are aware of all payable fees and charges associated with their loan.
Get In Contact
If you have any questions about anything you have just read, or indeed about consumer finance in general, jump on over to our comprehensive FAQ page. Here you will be able to find information not only on our lender-finder service but also a wide variety of consumer finance topics.
Alternatively, the Australian Securities and Invemestments Commission (ASIC) has a whole host of useful information on short term loans
You can, alternatively, reach us directly via the email form on our contact us page.