When stuck in a scenario where money is needed in a hurry, a personal loan may be a good option. Fortunately, with the advent of financial technology, commonly known as fin tech, one may be able to get money deposited in a bank account immediately in the form of a personal loan.
A personal loan is an unsecured loan borrowed from a bank, online lenders or credit union without any collateral. The loan term is often set and a person can use the loan amount for many purposes, unlike mortgages or car loans.
In New Zealand getting a personal loan mainly depends on an individual’s income level, employment history, repayment capacity and credit history. Someone may require the following documents to request a personal loan in New Zealand.
– Identity verification ( drivers licence, passport, ID card).
– A certificate of citizenship.
– Proof of one’s income ( some lenders may require bank statements, last three salary slips and tax returns from last two years if self employed).
– Financial information ( some lenders also require information regarding assets, debts and liabilities).
Also, peer to peer lending is growing day by day in New Zealand. There are many P2P lenders licensed by The Financial Markets Authority which gives individuals much faster service with lower interest rates. Have a look at our in-depth review on three top P2P lenders in New Zealand!
P2P Lenders in New Zealand
1.) Harmony
The first licensed peer to peer marketplace, Harmony launched in 2014 in New Zealand. It provides unsecured personal loans of up to $50,000 with no early repayment fee and with an interest rate of 6.99% up to 29.99%. A minimum loan amount of $2,000 to a maximum of $50,000 can be applied for by borrowers. Their loan term ranges from 36 to 60 months. with the approved online applications being funded within 24 hours.¹
2.) Nectar Personal Loan
Nectar is 100% New Zealand owned. They possess a flexible loan term ranging from 6 months to 4 years with set interest rates between 8.95% to 29.95%. They also provide a large range of loan sizes between $1,000 and $20,000 with a turnaround time of around 24 hours. Nectar provides faster, easier and low expense loans even to those with a less than desirable credit history.
3.) NZCU South Unsecured Personal Loan
They give quick access to funds with long loan terms up to 7 years. The loan amount ranges from $2,000 to $50,000 with access to funds within 24 hours. NZCU doesn’t charge a monthly service fee. The interest rates vary depending on loan size between 10.90% to 28.90%. For fast finance and emergency use, NZCU is the top option.²
So let’s look at some of the reputable banks in New Zealand which provides personal loans at lower interest rates than their competitors.
4.) The Co-operative Bank
The Co-operative Bank is a popular bank in New Zealand which supplies everyday banking services such as savings options, loans, insurance and small banking throughout the country. It only requires 5-10 minutes to complete an online application. The interest rates range from 6.99% to 19.99% per year depending on both credit and financial situations.³ People currently banking with the cooperative Bank are able to earn extra savings and lower interest rates. The repayment period ranges from 6 months to 60 months with no early repayment charges.
5.) ANZ Bank
ANZ Bank is one of New Zealand’s largest financial services group. It gives access to many banking services, including investment and payment solutions, and asset finance. The ANZ providings set its rate of personal loans i.e. 12.90% interest rate per year. The loan amount ranges between $3,000 to $40,000 with more flexible repayment terms available from 6 months to 7 years. Once approved one can get the desired amount the following business day.⁴
6.) Auckland Savings Bank (ASB)
ASB bank provides a wide range of financial services including retail, rural and business banking, funds management, as well as insurance. They provide personal loans with set interest rates of 12.95% to 19.95% per annum.⁵ The unsecured loan has a minimum amount of $2,000 and up, and repayment can be made over an extended period of up to 7 years, or in as little as 6 months. Loans can be approved within 24 hours and will get paid within 48 hours.
Do Research
A personal loan can help borrowers reach financial goals, overcome financial shortfalls, and help improve multiple debt situations. It is essential to take one’s time to look around and compare different options before finally applying for a personal loan. Reaching out to different lenders online will not only be more time-effective but also provides a better understanding of loan amounts, repayment terms and other such situations in the process.
References
[1] “Finder.” Harmoney. Accessed 17 june, 2020. https://www.harmoney.co.nz/finder?utm_source=finder&utm_medium=cpa&utm_campaign=cpa&utm_term=table&utm_content=table
[2] Barry, Elizabeth, and Elizabeth Barry. “Compare Personal Loan Options for Migrants.” Finder NZ. March 18, 2020. Accessed 17 june, 2020. https://www.finder.com/nz/personal-loans-for-migrants.
[3] The Co-operative Bank. Accessed 17 june, 2020. https://www.co-operativebank.co.nz/open-a/personal-loan/bf735b85-b8b3-4980-8c80-0aee76217724/landing.
[4] “Personal Loans.” ANZ. Accessed 17 june, 2020. https://www.anz.co.nz/personal/loans/.
[5] “Personal Loan Interest Rates and Fees: ASB.” ASB Bank. Accessed 17 june, 2020. https://www.asb.co.nz/personal-loans/interest-rates-and-fees.html.
