Taking control / July 22nd 2021

Personal Loans 101: Here's What You Need to Know

Home made family finance plan

Personal loans can be a lifesaver when you need funds fast. We have previously explored the pros and cons of personal loans, and how to tell if they are right for you. If you have decided to go with a personal loan, you will want to know more about the personal loan agreement and the application process. Keep reading to learn more including how to apply for a personal loan online!

A quick run-down on personal loans

Personal loans are a type of unsecured loan. You don’t need to put up any sort of collateral, such as your house or car, to secure the loan. This method makes the loan process easier, but there are usually higher interest rates with unsecured loans, as it is riskier for the lender. Personal loans can be used for a range of things including unexpected medical bills or car costs. At MoneyShop, our personal loans range from $200 to $20,000 depending on your situation.

Personal loan agreements

A personal loan agreement is a contract between two parties: the lender and the borrower. It is an important document that outlines key aspects of the agreement. Below are the specific elements you can expect to find in a personal loan agreement.

Consumer credit contract

With the consumer credit contract, the lender discloses key information about the agreement. They will outline the interest and how it is calculated. They must also outline how much the payments will be and when they will be due. The consumer credit contract should specify if the lender will accept extra payments in advance and if any fees will be incurred for doing so. Any other fees need to be outlined here as well, such as default and admin fees.

Promissory note

The promissory note is the legally binding part of the contract, where both the lender and borrower sign to signify that the borrower agrees to pay back a certain sum by a certain date.

Terms and conditions

The terms and conditions are the part of the agreement that explains in greater detail what the lender means by the terms in the contract, so they can be fully understood by the borrower and agreed upon.

The personal loan application process

The application process will look different depending on where you get your loan from. At MoneyShop, you can apply for a loan at your local branch or online. Applications are processed fast; in most cases, you will either have the money in your account on the same day or by the next business day.

To apply, you will need to provide two forms of ID, such as a passport, drivers licence, birth certificate, or 18+ Card. One of these needs to include a photo of yourself. You will also need to provide a current payslip or WINZ breakdown, a bank transaction history that shows your income and expenses for the last three months, and proof of your address or a tenancy agreement.

Along with this information, you will need to let us know the amount of money you need to borrow and the reason for the loan. Once we have all the details, our team will process the loan for you and let you know the outcome. We have a 98% approval rate for all claims, so we will do what we can to get your loan approved for you.

Enjoy straightforward loan applications with MoneyShop

At MoneyShop, we offer fast and easy unsecured personal loans in NZ to get cash in your account fast, and secured loans for other events such as car loans, holiday loans, or a loan to cover your wedding costs.

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