Personal Loan Interest Rates: What Should You Be Paying For a Loan?
Understanding personal loan interest rates
There are a variety of different lenders on the market that claim to offer competitive personal loan interest rates. So, how do you know if you’re getting the best deal on your loan? Like any form of debt, interest rates on personal loans tend to vary based on the lender and your credit history. That’s why it’s so important to do your research and make sure you’re on top of your credit.
To help make things a bit easier, we’ll walk you through some things you might want to consider when it comes to interest rates. As a lender-finder, Jacaranda Finance NZ can help you find lenders offering affordable personal loans. So, we’ll also cover how our team might be able to help you find the finance you’re looking for today.
What is an interest rate?
Put simply, a personal loan interest rate is the amount payable on top of the repayments on a personal loan. Although lenders will generally have fixed interest ranges on their personal loan products, the rate you’ll be offered will reflect how much the lender trusts you to make your repayments on time.
While personal loan interest rates vary from lender to lender, all Kiwi lenders are required to comply with responsible lending principles. In New Zealand, the Credit Contracts and Consumer Finance Act (CCCF Act) sets out rules for lenders and how they charge interest. Under the act, lenders are prohibited from charging interest in advance and must disclose to you:
- the annual interest rate or rates that apply
- any fixed term that applies, (e.g. 9.5% interest fixed for 5 years)
- how interest will be charged and when
- what default charges apply, and how/when these may apply
For more information, refer to the Commerce Commission website.
What is a good interest rate for a personal loan?
It’s difficult to determine a good interest rate for a personal loan, as there are so many factors that play into it. Interest rates can be as low as 4% or as high as 30%! While you may think that the lower the interest, the better, additional fees and charges attached to a personal loan may undercut the benefits. As a result, it’s important to look at all features of a loan when comparing personal loan interest rates.
How do I find a lender?
That’s where we come in! Jacaranda NZ is a lender finding service. That means we can’t speak on behalf of other lenders in relation to possible personal loan interest rates. However, if you’ve been googling ‘low interest rate loans’ or ‘personal loan interest rates NZ’ we may be able to help.
Our team will show your application to a whole range of different lenders so you get the best chance at approval on a personal loan. At Jacaranda NZ, we know that not many Kiwis have time to sift through pages and pages of search results comparing loans and interest rates. So, don’t waste your time googling ‘personal loan interest rates NZ’ or ‘how to calculate interest rate on a loan’, let Jacaranda NZ do the hard work for you.
Who can apply?
Like what you hear? If you’re looking to compare personal loan interest rates you could apply with Jacaranda NZ. You’ll be pleased to know that we keep our application criteria as simple as possible. Here is what you’ll need to meet if you’d like to apply to our lender finding service:
- All applicants must have an active mobile number and email address;
- Applicants must be over the age of 18;
- A regular income must have been deposited into your personal bank account for the last three months;
- Applicants must have internet banking set up;
- You must be able to prove you are a New Zealand citizen or permanent resident.
Will I need to fill out paper forms?
No! At Jacaranda NZ, our lender finding service is built for Kiwis on the go. We are 100% online. That means you can apply for a loan wherever you are and whenever you like. If you submit your application during regular business hours our team will do their best to get back to you with an outcome in 60 minutes.* Here is what we suggest you have handy whilst completing our online application form:
- Personal info (name, D.O.B etc.);
- Your internet banking details;
- The reason you are applying for a loan;
- Your MyGov details (if you receive Centrelink benefits);
- Your employment details and employer contact info;
- All applicants must be able to prove they are a New Zealand citizen or permanent residents.
What can I use a loan for?
Wondering what a personal loan could cover? There are so many options! At Jacaranda NZ, we do our best to find you the perfect lender for the job. Check out the following:
Found the boat of your dreams? Don’t let finances stand in the way. If you’ve been googling ‘cheap boat loans interest rate’ why not let Jacaranda NZ do the searching for you. We’ll submit your application to a variety of boat loan lenders so you get the best chance at a cheap boat loan interest rate. We know you’ve got better things to do than sit on the computer all day and sift through search results. Work smarter not harder with Jacaranda NZ!
If an unexpected medical bill has popped up at the most inconvenient time don’t waste time searching for medical loan interest rates. Jacaranda NZ will show your medical loan application to a range of Kiwi lenders and do their best to match you with a compatible medical loan. We do the leg work while you focus on getting better! You could scroll up right now and use our loan interest rate calculator to get started on an application.
If you’re looking for an IVF loan let Jacaranda NZ lend a hand. There are so many lenders out there all boasting different things. As a result, trying to decipher the best IVF loan interest rate can be challenging. So, why not let Jacaranda NZ do the hard work for you? We’ll check your eligibility across a range of lenders and get back to you with an outcome in 60 minutes.* We understand that Kiwis have better things to do with their time. So, why not apply today? An application is 100% free of charge.
Looking for a rural loan? The good news is Jacaranda is nationwide. That means you can apply for a personal loan wherever you are in New Zealand. All you need to start your application is a good internet connection – you could even complete the application form from your smartphone. At Jacaranda NZ, we are all about convenience. So, if you’ve had no luck googling ‘rural loans interest rates’ why not start an application with Jacaranda NZ’s lender finding service?
What about bad credit?
Does the thought of your credit score make you cringe? Don’t worry, you’re not alone. If you’re not too proud of your credit score you’ll be pleased to know that Jacaranda NZ could find you an open-minded lender. Some lenders look at your income, spending habits and existing financial commitments to determine eligibility for a personal loan.
When you apply to Jacaranda NZ’s lender finding service you won’t have to compare personal loans and interest rates – we’ll do it for you. If you submit your application during business hours we could even have an outcome for you in 60 minutes. Gone are the days of bad credit standing in your way. An application with Jacaranda is 100% free of charge. So, why not let us help you look for a bad credit loan lender.
How do I apply?
Think you’re ready to apply? The good news is a loan application will cost you nothing. That means you can check out the possible personal loan interest rates without paying a cent. Here’s what you’ll need to do:
Head to the top of the page and use our loan calculator to input your desired loan amount and the repayment period. You will then be directed to complete our 100% online application form.
Fill out the form
The Jacaranda NZ team will just need a few important details to show a possible lender. Our application form only asks for the essentials and could take you a few short minutes to complete.
We look for a lender
Once the Jacaranda NZ team receives your application form we’ll start looking for a compatible lender. We’ll submit your application to a variety of different lenders so you get the best possible chance at the best personal loan interest rate. If we’ve found you a compatible lender we’ll put you in touch straight away.
Sign your agreement
Your new lender will send over an agreement for you to review and sign. Jacaranda NZ encourages all borrowers to read through their loan agreement before signing. It is essential that you are aware of the terms and conditions associated with your loan agreement. Get in touch with your lender if you have questions. When you’re happy just sign your agreement and send it back to your lender!
Get your cash
Once your new lender receives your signed agreement they will transfer the cash straight to your account. Keep in mind that inter-bank transfer times can affect the speed at which you get your cash.
*When you apply during regular business hours.
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