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Types of personal loan

Types of personal loan

With so many loan options available it can be difficult to decide which one is right for you. Read on for some advice on the different types of loan available.

Unsecured loan
This is a loan that is not secured by any type of asset. Because there is greater risk for the lender interest rates tend to be relatively high. These loans are usually used for small purchases up to around $2,000.

Secured loan
A secured loan is one in which you use an asset as security or collateral for the loan. If you fail to make repayments on the loan then the lender takes possession of the asset. Secured loans are a preferred option as the interest rates charged are usually lower than unsecured loans.

Variable rate loan
These loans have an interest rate that rises and falls in line with market conditions. The rate charged depends on changes to the official cash rate. This is a good loan option to choose if interest rates are low or are expected to fall. In general these loans work out to be cheaper than fixed rate loans.

Fixed rate loan
With a fixed rate loan the interest rate charged remains the same for a fixed period of the loan term. This means that loan repayments will be the same each month allowing you to easily manage your cash flow.

  1. Graham Kalms08-12-2010 11:59:37

    I have a problem with veda advantage as they refuse overturn their decision and they don't owe to me and i don't owe them so how can I borrow without Veda advantage approve so I do need to find $8,000 very urgently and I have less than1 week left to find.

  2. AusomeFinance30-11-2010 17:20:39

    Hi Rhonda, if you are a homeowner you shouldn't have any problem getting a loan for $4000. It is generally harder to get an unsecured loan once you are retired - but because you have a regular pension you may be eligible. Call into your bank for free advice.

  3. rhonda.boodle27-11-2010 12:15:29

    iam righting to ask if there is a loan place i can go because i need 4000 to pay my bills off. so i can just have one bill to pay each month.i dont work anymore i have retried. and i am on a pension and i get 500 a fortnite. iam fineing it very hard ti get by. thank u for your time rhonda

  4. Joanne Cunningham19-11-2010 16:25:20

    That's great advice, thanks!

  5. Natasha Ollenburg18-11-2010 11:16:19

    i think this site is awesome, especially trying to help out people in hardships, whom have bad credit history or whom have no credit history at all. hopefully I will be lucky enough to get approved for a loan during my hard time...time will tell if these sites are what they say they are!

  6. Sarah11-11-2010 12:39:23

    I'm in a similar situation Jodie. I managed to get a 2000 loan but it has helped a lot. Make an appontment to talk to your bank. Good luck!

  7. jodie09-11-2010 14:44:22

    hi im bankrupt for second time have 2 causal cleaning jobs one iv held for 12 month second job i started 2 months ago i work 5 days wk at this job 25hrs.other job gives me anywere from 12 to 40 hours awk im a single mother of three children paying 250wk rent had a run of bad luck car stolen and burnt out. 8 days later house was broken into while we were sleeping. bank account has been emptied by a so called friend im struggling now need $4000 loan to retreve our things from pawn brooker catch rent up pay tele check before im charged with froud and to pay for xmas

  8. Penny09-11-2010 10:16:48

    I totally agree with these tips! I use them all the time

  9. Payday Loan26-10-2010 19:02:07

    I really like this blog, it gives interesting ideas for the reader. Keep it up!

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