Kiwis of all walks of life apply every single day for personal loans. Major once-off expenses such as weddings, funerals or holidays, as well as immediate expenses such as hospital bills or vehicle maintenance, are some of the common reasons people take out a personal loan.
Unlike a credit card, a personal loan lets you borrow a fixed amount over a fixed period of time, usually (although not always) at a fixed interest rate. Most banks and lending institutions offer up to NZD 100,000 as a personal loan amount, depending on your financial circumstances and the loan's purpose. Repayments are typically spread over one to 10 years, again depending on your personal circumstances, for example how much money you earn each month, your existing borrowings and your monthly expenditures.
Personal loans can be obtained via banks, credit unions, peer-to-peer lending, loan shops and payday lenders. Personal loans are popular in New Zealand and offer convenience for many Kiwis. Having a personal loan allows you easy access to funds while extending the repayment over a time frame that fits your schedule.
Types of personal loans
New Zealand offers a wide range of personal loans to those who have good credit, average credit or even bad credit. Check out the loan options below.
- Secured personal loan: The amount you borrow will be secured against an asset you own as collateral. The asset offered as collateral may be the one you are funding with the loan (e.g. a car).
- Unsecured personal loan: This loan is ideal if you want a loan that doesn't need an asset as a guarantee (collateral), or you want to finance a purchase that is unsuitable for a secured personal loan (e.g. a holiday).
- Car loan: If you can't afford to purchase a car outright from your savings, you're going to need a car loan or some other form of car finance.
- Debt consolidation loan: This is a way of merging a variety of loans, especially those with a high interest rate, into one manageable loan with a single monthly repayment and a lower overall interest rate.
It's important to compare loans. Borrowing from some lenders can be quite expensive in the long run, which is why it is crucial that you know what to look for when comparing lenders so you don't get stuck with a debt that you can't get out of.
Whether you are looking for a short term loan, cheap loan or quick loan, you can get all the information you need and compare personal loans right here at Finty. We compare New Zealand's leading personal loan offerings so that you can find the right loan and the right lender within minutes.
