Applying Online For A Loan


Before applying online, it’s advisable to work out your budget, what your new loan repayments will cost and have your supporting documents ready. Applying online for a loan to gain a pre purchase approval will allow you to:

  • Not overspend when choosing your car, boat, motorbike, horse float, caravan, etc
  • Be in the driver’s seat when negotiating price with the seller.
  • Have the confidence of knowing your repayments prior to committing to the purchase.  

Applying Online For A Loan

Before applying online for a loan, make sure you have your supporting documents ready such as Driver’s Licence, Medicare Card, Payslips or income proof.  You will need to supply some personal and financial information in order to determine whether your loan will be successful or not.  Your finance consultant can assist you with you with any queries you may have regarding online loan applications.


What Type Of Loan You Will Need

If purchasing goods such as a car, motorbike, boat, horse float, equipment or caravan, a popular loan product is a secured loan. A secured loan is where the lender takes a security or interest on the goods until the loan is repaid in full. This method usually attracts a lower interest rate from the lender and give the flexibility of weekly, fortnightly or monthly instalments. Secured Loans can be offered either on personal use loans or business use finance. Other options available are unsecured loans which give the flexibility to use the funds for any worthwhile purpose. The downside of unsecured loans is that the potential risk is higher to the lender, so they can adjust their interest rates accordingly.


The Loan Term

Loan terms on both secured and unsecured loans can vary between 1 year and 7 years. You need to carefully consider the loan term when applying for finance and choose a term to suit your budget. A longer term would provide lower repayments however the total interest component payable back to the bank would be considerably higher and repaying the loan over a shorter term would mean less in interest back to the bank, but higher instalments. Ask your finance consultant for repayment options to see if you have the flexibility to repay the loan earlier or make additional repayments.


Interest Rate


The interest rate offered by banks and financiers is dependant on the type of loan and applications factors. Secured Loans generally attract a lower interest rate than unsecured as the lender can hold an interest over the goods until the loan is repaid in full.

Your credit rating or score also determines the interest rate. Having multiple loan enquiries on your credit file can lower your overall credit score which can make it harder for lenders to approve the loan. Your surplus income after expenses, length of time in employment and your residence also plays a part in what the lenders will approve.

When researching your loan, also look at the comparison rate on the loan as this takes into consideration fees and charges that may be payable on the loan. As lenders have different establishment fees, monthly service fees and early termination fees, it’s advisable to look at the entire loan package, rather than just the interest rate to make sure the loan is suitable to you.

Your finance consultant will be able to provide information on the range of lenders, loans and their fees and charges.


What’s Next

Once the online loan application has been submitted, your finance consultant will be able to process your loan and advise you on what answer’s they’ve been able to obtain for you. If you’re happy to proceed, they will organise the loan documentation from the bank for signing.