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Loans are one of the best ways to get financial support for whatever task you need to execute. While there are different types of loans ranging from personal loans to student loans. However, we’ll be examining personal loans in this article.

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Eligibility criteria for applying for a loan in Australia

Most people do not understand the intricacies of loan applications, so their applications get rejected many times.

Here are a few things that loan agencies or banks require for successful loan applications:

● You must be at least 18 years or older.

● You must be an Australian citizen or permanent resident.

● You must have a full source of employment. If you’re self-employed, you must have been on the job for more than 24 months.

● You must have an acceptable means of identification (an Australian passport, Driver’s license, or Medicare Card).

● You must not have a case in court at the time of application.

Another question that pops up on many people’s minds is the difference between personal loans and debt consolidation loans.

Both are the same but only have different names.

A debt consolidation loan is simply a personal loan that is used to pay off other debts.

Let’s differentiate further by going through the definitions of both.

● Personal Loans:

A personal loan can be used for any expenditure of your choice.

They are paid back within 2-5 years and have a fixed interest rate.

The amount of loans approved usually varies from $1,000 – $20,000.

You can also get personal loans as large as $100,000 from some private lenders.

These loans are unsecured.

This means you do not have to have any collateral to get these loans.

You can spend it as you wish.

● Debt Consolidation Loans:

A debt consolidation loan is a type of personal loan that places your high-interest loans under a single loan interest plan.

Now, here’s what you should know: assuming you have a lot of loans, each with their different interest rates, and then you take out a personal loan to settle all of them.

This automatically makes that personal loan a debt consolidation loan.

It provides an easier way to pay your loans.

Now, let’s go through a few of the best personal loans in Australia:

1. Symple Loans Personal Loans

If you like to keep things simple when it comes to your finances, then you might want to check out the Symple Personal Loan.

This loan features variable rates that start from 5.75% p.a. (6.89% p.a. comparison rate*) with a maximum borrowing capacity of $50,000.

But what’s really great about Symple is its application process – if your application is approved, you’ll have the cash within 24 hours!

Borrowers will also enjoy no exit or early repayment fees, so you can work to pay off your loan as fast as possible without being penalized.

2. OurMoneyMarket Low Rate Personal Loan

With the Our Money Market Personal Loan, borrowers with a squeaky clean credit score could enjoy a fixed rate that’s as low as 8.00% p.a. (8.21% p.a. comparison rate*).

Whether you’re looking to renovate, take a holiday, or even pay for a cosmetic procedure, you’ll have access to up to $50,000 to be repaid over a maximum of seven years.

And speaking of repayments, pay off your loan faster with the extra repayments option or redraw these additional funds at no extra cost.

These two providers offer some of the best personal loans in Australia.

If you’ll like to find more options, you can talk to a financial advisor.

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