A personal loan is a sum of money that a lender or bank lend which is repaid back over a fixed monthly amount and loan term. Generally, a personal loan is not secured against any asset such as your home. You can learn more about what a personal loan is here.
Personal loans - benefits
- You may be able to borrow more as a loan than you would with a credit card
- Loan repayments are usually a fixed amount each month which in turn, makes budgeting easier
- Your loan is repaid back over a fixed term agreed with your lender or bank
- Loans can be a useful way of consolidating debts into one fixed repayment
Most lenders will also allow you to make overpayments on your personal loan or even pay the loan in full before the loan term comes to an end. Be mindful that some lenders may charge a fee for this, so it is always worthwhile looking at your terms first.
Personal loans - cons
- You may not always get the advertised loan interest rate
- Unlike credit cards, you may have limited protection on purchases
Different Types of Personal Loans
There are a number of different loan products available and chances are, most will have similar maximum loan amounts and loan terms. We have listed a handful of commonly searched for loans below.
Reasons to take out a personal loan
Whilst there is not an actual loan called a 'wedding loan' the reasons for taking out a loan are quite broad. A lender would want to know the reason you want to borrow money and some popular reasons can be found below. For the most, loans will fall into two categories, unsecured or secured. Monevo Australia only offers unsecured loans meaning that the loan is not secured against an asset.
- Loans for Holidays
- Loans for Weddings
- Car loans
- Loans for Home improvements
- Loans for Medical bills
Remember, if you are approved for a loan, be sure that you budget accordingly to meet the monthly repayments agreed with your lender.