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Read This Before Applying for a Personal Loan

Monday 27 July 2015, 11:11AM

By NZCU South

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Finding a personal loan provider can be overwhelming with the high volume of banks and finance companies to choose from. NZ personal loans are available for all purposes including debt consolidation, vehicles, holidays, home renovations etc but finding the right loan to suit your budget is important.

Applying for personal loans online is a very convenient option for people with extremely busy lives. 

An online personal loan calculator will also help you see how much you can borrow, what your repayments will be and how long it will take to pay off your loan.

There are many personal loan interest rates NZ comparison websites to view secure and unsecure nz loans, interest rates and administration fees.  Many people think comparing personal loan rates is the key to finding the best loan provider.  It is imperative to investigate all fees and charges that will be applied to your loan application, not just the interest rate.  Making a decision on the interest rate alone may be the most expensive option.

Many NZ loan providers offer secured or unsecured loans.  Secured loans are protected by an asset like a car.  Secured loans usually offer lower interest rates with higher borrowing limits.  Unsecured loans are more risky to the lender which is why the interest rates are normally higher.  Where possible, secured loans are the best for both parties.

The recent Credit Contracts and Consumer Finance Act 2003 changes  will give more protection and better information for consumers when borrowing money and require all lenders to act responsibly.  These changes are very beneficial to nz personal loan consumers. Lenders must ensure loan documents are clear and concise to ensure consumers can make informed decisions.

Consumers can now easily find interest rates, fees and contract terms which allow consumers to make comparisons in an open and honest environment.  This means consumers can shop around online or in branch and choose the personal loan that suits them the best.

The Credit Contracts and Consumers Finance Act 2003 has provided much-needed protection for consumers in search of a personal loan.  Consumers can rest assured that lenders will be held accountable for being honest and transparent. 

To find out more information on Personal Loans see NZCU South's Personal Loan Page.