A personal loan is a great way to help you pay for something if you don't have the funds upfront. We're here to break down personal loans, from how they work to what you can use them for and how to apply.

How do personal loans work?

A personal loan allows you to borrow a set amount of money from the bank to pay for something. You will then need to repay that money back over time in instalments, plus interest.

The amount of money you can borrow depends on the bank and what you are planning on using it for, but most people take out personal loans for between $10,000 and $50,000. Repayment terms, which is the amount of time that it will take you to repay your loan back, are generally between 1 and 10 years.

Secured vs unsecured personal loan

A secured loan means you offer something you own of value as collateral when taking out a loan. In the case that you can't pay back your loan, the lender (bank) could sell the asset to get their money back. Assets that are used as collateral often include vehicles (cars, boats, motorbikes), property and stocks.

An unsecured loan means that the lender doesn't need any collateral to allow you to borrow money. This is a higher level of risk for the lender, so you will generally pay a higher interest rate.

What can you use a personal loan for?

You can use a personal loans for all sorts of things, including:

1. Wedding expenses

2. Home improvements or renovations

3. Holidays

4. Debt consolidation

5. Buying a vehicle

6. Moving houses

7. Emergency expenses, such as funerals

8. Furniture and appliances

9. Education

10. Medical bills

How to apply for a personal loan

To apply for a personal loan you must be:

• 18 years or older
• Applying on your own
• Receiving a regular income
• Hold Australian citizenship or have permanent residency

If you meet that criteria, the next step is to come in and have a chat to us about what you want to use a personal loan for and we can get the ball rolling.

Easy Loans is a broker, so our job is to get you the best deal on your loan. We shop around at different banks for you to get your loan approved at the lowest rate possible. The best thing is it's free for you to come and see us - we don't charge you for our service because the banks pays us when we links you up to borrow money with them, like a commission.

Give us a call on (08) 8981 2345 or fill out our Contact Form and we'll be in touch.