Unsecured personal loans can be found everywhere online these days. However, if you’re in need of a loan of up to $2,000 fast, you simply don’t have the time to trawl through all the lender options. That where Monzi comes in. We’ll scan through hundreds of different loan products to try and pair you with a lender offering personal loans.
What are unsecured personal loans?
Unsecured loans are loans that are supported only by the borrower’s creditworthiness and income. In other words, the borrower does not attach any assets as collateral against the loan. Generally, unsecured personal loans are of $2,000 or less and are repaid over several months.
These can be used to cover a myriad of personal expenses. So, whether you need a little cash to cover a bond, or a little more to pay for car repairs or registration, you could use a personal loan. You could even use your personal loan to cover your next holiday’s travel costs. It’s really up to you.
Monzi is a lender-finder that could potentially pair you with a lender who may be able to offer a small loan between $300 and $2,000.
What’s the difference between secured and unsecured personal loans?
A secured loan, as opposed to an unsecured loan, is secured by an asset owned by the borrower – like a car, motorbike, caravan or even house. Secured loans pose less risk to financial institutions because, if a borrower defaults on their loan, the lender is able to sell the asset used as collateral. Therefore, the lender is able to recoup some of the losses they incurred on their loan.
Additionally, because secured personal loans pose less of a risk to lenders, they are often willing to lend larger amounts and charge less interest compared to an unsecured loan.
Therefore, the lenders Monzi work with may be able to offer you a secured personal loan from $2,100 to $10,000!
How much can I borrow unsecured?
Monzi may be able to match you with a lender who could offer you an unsecured loan of up to $2,000. Then, you will repay this loan over 12 months, with weekly, fortnightly or monthly repayment terms.
Keep in mind, however, that this is always at the discretion of the lender. The lender we pair you with may, in certain situations, let you borrow an unsecured loan over $2,000. This is, ultimately, the lenders choice – you will need to find out from your lender directly.
Benefits of an unsecured loan
As a form of credit, unsecured loans may have many notable benefits, including:
- No risk to your assets: If in the unfortunate event you are unable to repay your loan, you will not lose the asset you used as security.
- Flexibility: You are able to use your personal loan to cover a wide variety of costs, from household items to booking a hotel or to cover an unexpected bill.
- Consolidate debts: If you’re paying high interest on your credit cards, you may be able to consolidate your debts with a personal loan.
- Quick and easy: Applying for a loan can usually be done in minutes online.
Unsecured personal loans interest rates – fixed or variable?
The difference between a fixed-rate and variable-rate loan is relatively simple.
In short, a fixed-rate loan’s interest rate cannot be changed. In other words, the interest-rate is locked in for the life of the loan. For example, if you take out a loan with a fixed rate of 9% over 3 years, your interest rate will always be 9%.
Alternatively, if you take out the same 3 year loan at 9%, but with a variable-rate, the lender is able to change the interest rate at their discretion.
Explaining comparison rates
A comparison rate makes it easy for consumers to get a better idea of the true cost of a personal loan.
A comparison rate reduces a loan’s interest rate plus most of the fees and charges down to a single percentage figure. Therefore, loans from different lenders can be easily compared by consumers.
Comparison rates are handy because, without them, it would be difficult to compare unsecured personal loans with different interest rates and fees.
The table below outlines how comparison rates are calculated.
|Interest rate||Fees & charges||Comparison rate|
Therefore, in the above example, loan B will cost less than loan A. This is despite loan A having a lower interest rate.
Keep in mind, additionally, that the comparison rate may not be the only thing borrowers should consider when comparing different loan products.
I’m looking for the best unsecured personal loans
While comparison rates do make comparing loan products easy, there are other features you need to consider when comparing loans. For example:
- Type of interest rate: It is important to pay attention to what type of interest rate the loan comes with, in particular, whether it is a fixed-rate or variable-rate loan.
- Loan term and flexibility: How long you have to repay your loan. For example, being able to choose a repayment term between 13 and 24 months.
- Early repayments: Some lenders may charge you a fee for paying your loan out early. Therefore, if you value being able to pay your loan out early, look out for early repayment fees.
- Fees: While a comparison rate is useful, they may not always include all the payable fees and charges. So, it is important to be aware of exactly all the fees and charges you may need to pay.
- Repayment flexibility: Find out if you are able to choose a repayment schedule that fits around your lifestyle, in other words, choosing between a weekly, fortnightly or monthly repayment cycle.
I want a low interst loan – do I choose fixed or variable?
If you’re concerned whether or not a fixed or variable rate is better, you’ll need to weigh up what you’re looking for as a borrower.
Some lenders may only offer fixed rates, while others will offer both. At the end of the day, it is up to you to decide which fits your lifestyle the best. After all, nobody understands your situation better than yourself.
Where do I get an unsecured loan?
Most lenders will allow you to apply for a loan online. However, as you will notice, there are a lot of options out there.
Monzi’s lender-finder service might be a great way to save yourself the hassle and stress of finding a lender.
Monzi makes it simple. Therefore, with one application, we’ll be able to sort through hundreds of different loan products at lightning speed. From there, if we’re successful, we’ll be able to pair you a quality lender who may be able to offer you a loan.
Are unsecured personal loans a good option?
Well, that depends on what you’re looking for in a personal loan.
For example, if you want a small loan of less than $2,000, unsecured loans may indeed be a good option for you.
Additionally, if you are not the registered owner of a car, motorbike, caravan or boat, then these loans may also be a good option for you.
How to get an unsecured loan
Monzi’s lender-finder may be a great tool for making your life easier and reducing the hassle of finding a lender.
Want to know how to use Monzi? After all, we may be able to pair you with a potential lender sooner than you think. Interested? Here’s how:
Step one – Monzi’s 100% online application
To get started, you’ll simply need to scroll up to the loan calculator at the top of the page. Then, select the amount you’re thinking of borrowing, as well as your ideal repayment terms. Now, you’ll be given a general idea of what your loan may cost. If you’re happy, go ahead and click Apply Now. Finally, you’ll be taken to Monzi’s super-simple online form.
Here, you’ll just need to fill in the information we need and submit the form.
Finally, just keep in mind the values presented in the loan calculator are simply a guide. Depending on the lender you’re paired with, the actual terms of your loan may vary.
Step two – kick back
From here, Monzi will take care of the rest. Now, our automated system will scan through hundreds of different loan products to try and pair you with a lender who fits your individual circumstances. If you apply during business hours, this may only take a few minutes. We’ll usually let you know the outcome via email and text, so keep an eye on your devices.
Step three – meet your new lender
If we’re successful, your new lender should be in contact. From here, you’ll deal with your lender directly. Normally, they’ll send through your digital loan contract if they approve your application.
Note, make sure you’re happy with the terms of your loan by reading through your contract carefully. If you aren’t, you are under no obligation to approve the loan contract.
If you are, however, happy with everything, simply digitally approve your contract. Usually, your lender will then begin transferring your funds once you approve your loan contract. You may expect to receive your loan the same day, or at the latest, the next business day.
Keep in mind, however, that access to funds is dependent on inter-bank transfer times.
Why is my loan taking so long to transfer?
The time it takes between approving your contract and accessing your funds is dependent on a few variables. Therefore, understanding these variables may be key to increasing your chances of receiving your loan the same day.
- Banking rounds: Lenders will have rounds of banking throughout the day, where they transfer loans to borrowers. Keep in mind, many lenders will have their last round of banking towards the end of their business day. Therefore, if you approve your loan contract outside of these hours, your funds may only be transferred the next business day.
- Bank transfer policies: Some banks may take longer to process funds than others.
- Weekends: Most banks will not be able to transfer funds over the weekend. So, keep in mind, if you approve your loan contract over the weekend, you may not receive it until the next business day.
Can Monzi find me unsecured personal loans bad credit?
If you have bad credit, you may feel like your options are limited. While in certain situations, this may be true, it is not universally the case.
Admittedly, traditional lenders like banks are unlikely to accept your application for a personal loan if you have poor credit. This is usually because banks and credit unions have much stricter eligibility criteria, and place more emphasis on having good credit.
Luckily, Monzi works with a trusted network of lenders, who may be able to offer you a bad credit loan.
After all, a few financial mistakes in the past don’t always necessarily determine what kind of borrower you are today. Monzi, as well as the lenders we work with, understand this.
That’s why when you use Monzi’s lender-finder service, we’ll ask you to supply your internet banking credentials. By doing this, we are able to access a read-only copy of your bank statements. This, in turn, gives potential lenders a better idea of you and your current relationship with money. In other words, they can look at more than just your credit score.
What if I’m receiving Centrelink, can Monzi still help?
Absolutely! See, Monzi works with a network of lenders who may be happy to regard regular Centrelink payments as a form of income.
Just keep in mind, however, that you may need to keep your myGov details handy for when you fill out our online application form.
Looking for loans for people on Centrelink? Monzi could help find the lender.
If I’m self-employed can Monzi find me unsecured personal loans?
If you’re searching online for unsecured personal loans self-employed, then Monzi may be able to give you a hand.
We work with a trusted network of lenders who may be able to offer you a loan for self-employed.
So, if you’re running your own business, see what Monzi’s lender-finder service could do for you.
Will you conduct a credit check on my application?
As the lender-finder, Monzi will not perform a credit check on your application.
How does the Monzi loan calculator work?
At the top of this page, you’ll notice our loan calculator. In short, the loan calculator gives you a rough idea of what the repayments on your loan may look like. Your weekly, fortnightly and monthly repayments, in particular, will be displayed.
This is, however, just a guide. As Monzi is just a lender-finder, we cannot guarantee what the repayments on your loan will be if approved. After all, this is up to the lender themselves. To get a better idea of what the repayments may be on a loan, you’ll need to get in contact with a lender directly.
Finally, the repayment terms may also vary depending on the lender you’re paired with.
Benefits of using Monzi’s lender-finder
Using Monzi’s lender-finder service can be a simple way to bypass the hassle of finding a personal loan lender. However, don’t just take our word for it. Here are a few reasons why you should consider using Monzi:
- Fast: Our automated system is able to scan through hundreds of different loan products in no time.
- Easy: Monzi’s online form should only ask you to provide the essentials.
- No paperwork: Our process is 100% online, meaning you can forget the paperwork.
- One application: Fill in our form once, and we’ll scan through multiple lenders. This is a big plus, as applying for multiple loans may have a negative effect on your credit score.
What kind of loans can Monzi find?
Monzi may be able to pair you with a lender offering more than just unsecured personal loans.
In particular, Monzi works with a wide network of trusted lenders that can usually offer 3 broad types of personal loans:
|Type||Amount $ (AUD)||Term||Secured|
|Small||$300 to $2,000||12 months||✗|
|Medium||$2,100 to $4,600||13 to 24 months||✓|
|Large||$5,000 – $10,000||13 to 24 months||✓|
Will Monzi pair me with a payday lender?
In short, no.
Monzi does not work with payday lenders. Payday loans, also known as cash advances, often have very short, unmanageable repayment terms. Monzi, instead, may be able to pair you with a lender offering personal loans of up to $10,000.
Monzi works with lenders who take their responsible lending obligations seriously.
Therefore, they will always make inquiries as to your financial situation and objectives. As a result, the lender will not offer you a loan they feel to be ‘unsuitable’ for your situation.
Ready to apply?
If you have any questions about what you’ve just read, the answer may lie in our FAQs.