Just How Easy Is It To Get A Personal Loan

For many Australians, personal loans are a popular choice for individuals looking to achieve their financial goals without the headache of complicated processes. These loans offer a straightforward way to fund your dreams, allowing you to take control of your financial journey.

But are personal loans easy to get? If you’re a first-time borrower, it’s important to understand the ins and outs of personal loans to ensure you make the right decision for your individual financial circumstances. In this blog, we’ll explain what personal loans are, what they can be used for and, most importantly, if they’re easy to obtain.

The key features of a personal loan — what you can expect

If it’s your first time researching and shopping around for personal loans, you might not know where to begin. As a responsible lender, we believe in empowering our customers through education to ensure they have the resources to make a well-informed decision. We’ve outlined some of the standard loan features for first-time borrowers below:

• Interest rate — Like a mortgage, personal loans come with an interest rate, which is the cost of borrowing the money. The interest rate can be either fixed or variable. A fixed interest rate remains the same throughout the loan term, providing predictability in monthly payments. A variable interest rate changes over time based on market conditions. This means that your interest rate could go up or down over the time you have your loan.
• Loan term — The loan term is the duration over which the loan is to be repaid. Personal loans typically have terms ranging from one to seven years, although this can vary depending on the lender and the loan amount. Shorter loan terms generally result in higher monthly payments but lower overall interest costs, while longer loan terms spread out the payments but may result in higher total interest paid over time.
• Loan amount — The loan amount refers to the total amount of money you’re looking to borrow. How much you can apply to borrow will depend on a number of factors, such as your income and your living expenses.
• Fees — While fees vary between lenders, some can include application fees, annual fees, early repayment penalties or late payment fees. It’s important to review the loan agreement (even obtain independent advice) and understand these fees before signing on the dotted line.

As you can see, personal loans are relatively easy-to-understand and accessible credit products that can fund several different financial milestones, from a well-deserved holiday to purchasing your first car. But the question still remains, are personal loans easy to obtain?

So, are personal loans easy to get?

There is unfortunately no simple answer to this question. The ease of obtaining a personal loan can vary depending on various factors, including your financial profile, credit history, income and the lender you approach. While personal loans can be relatively accessible, it’s important to note that lenders have their own criteria and eligibility requirements that they consider, such as:

• Creditworthiness — Lenders typically evaluate your creditworthiness to assess the risk associated with lending you money. While a good credit score can make it easy to qualify for a personal loan with traditional lenders, many lenders, such as Finance One, cater to individuals with less-than-perfect credit, offering options (where possible) for those with lower credit scores or limited credit history.
• Income and debt-to-income ratio — Lenders want to ensure that you have a stable income and the ability to meet your repayment obligations required for any finance provided. They may assess your debt-to-income ratio, the percentage of your monthly income that goes towards debt payments. A lower debt-to-income ratio can improve your chances of getting approved for a personal loan.
• Documentation and verification — When applying for a personal loan, you will typically need to provide supporting documentation such as proof of income, identification and bank statements. The ease of gathering these documents and the efficiency of the verification process can impact how easy it is to obtain a personal loan.

It’s also worth noting that thanks to the rise of online lending platforms, personal loan applications have become more accessible and streamlined. Online lenders often offer a convenient digital application process with quick approval decisions and an almost instantaneous funds transfer.

And if you’re in the market for an online lender that upholds a streamlined and inclusive personal loan application process, Finance One may be the solution for you.*

Finance One — compassionate and responsible personal loan lenders

When it comes to fulfilling your financial aspirations, personal loans can be the key that unlocks the door to a brighter future. With their versatility and accessibility, personal loans offer a flexible solution for individuals looking to make big changes.

Finance One is a leading specialist lender based in Townsville, offering applicants transparent and fair lending solutions.** We consider applicants with varying financial histories and provide (where possible) a second chance to those knocked back by traditional lenders.

Find out if a Finance One personal loan is the right solution by contacting us at 1800 346 663 or submitting an online application today.

Normal lending criteria apply. Fees and charges are payable. Terms and conditions apply.

Finance One means:
Fin One Pty Ltd – ABN: 80 139 719 903
Australian Credit Licence: 387528

*Loans between $50,000 – $75,000 must be asset backed.
**48 hour approvals subject to satisfactory documentation being provided to assess the application.

Disclaimer: The information above is of a general nature only and does not consider your personal objectives, financial situation or particular needs. You should consider seeking independent advice regarding your legal, financial, taxation or other needs, to check how the information relates to your particular circumstances. We do not accept responsibility for any loss arising from the use of, or reliance on, the information. All loan applications are subject to normal lending criteria. Fees and charges payable. Terms and conditions apply.