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When you’re looking for the perfect loan, the task may prove to be more difficult than originally anticipated. It’s tough to find a loan which suits your needs, whilst still possessing benefits such as low interest rates and early repayment discounts.

Before you get bogged down researching every possible loan type out there, here are some tips to help you secure a low interest rate loan, in Australia:

1. Before you do anything, you need to assess the reasons as to why you need a loan. Personal loans come with higher interest rates. If you need car repairs to a business vehicle, you should consider different options, probably the most relevant alternative being a business loan, offering benefits such as tax deductions and low interest rates.
2. Plan what you are going to do with the money. Since you’ll be paying interest, you should have a plan in order to keep the repayments on track and avoid any additional charges. Some lenders offer an early discount payment, therefore if you have a plan in place (and stick to it), you could be paying back a great deal less than you initially set out to pay.

Here are some things that you can keep in mind to find the best types of loans for you:

  • Research well
    You need to remember that there is no shortcut to finding loans with the lowest interest rate. There is a great deal of information about a whole host of different loans, so it’s easy to get overwhelmed. In order to combat this, an easier option could be to contact a broker. They have the knowledge and understanding of the industry to point you in the right direction.
  • Don’t trust shady websites
    One of the biggest mistakes you can make is to take any deal out of desperation. There are plenty of shady websites out there that offer some loans with relatively low interest rates – when they say it’s too good to be true, it probably is! So, make sure that you use a lending website that is legitimate and take the time to read reviews from reliable sources such as Trustpilot.
  • Stay away from loan sharks
    Take caution when applying for a loan. If you happen to find yourself in a position whereby a loan shark has offered you a desired amount of money, be very careful. Here’s how to spot a loan shark:
    1. They offer very little paperwork
    2. Give minimal information on repayments and the amount of money owed
    3. Refuse to allow debts to be settled
    4. Add additional charges at any time

How to make the process easier?

Once you have found your ideal loan and spoken to the lender, you should be aware that you’ll need to provide certain documents in order to get your application approved as soon as possible. Here are some of the things you’ll be asked for when applying for a loan:

  • Proof of identity, often a driver’s license or passport
  • Your bank statements over the past 6 months
  • Your consent for a credit check

Applying for a loan couldn’t be easier, especially with Lumi. If you’re looking for business finance, apply now to receive an outcome the same working day.

Article written by Kiera Peterson.

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Post Author: Lumi Team

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