Personal Loans Online Approval: All You Need to Know

With the rise of Australia’s inflation and cost of living, many Australians find themselves running low on savings, struggling to make ends meet, and resorting to personal loans.

Whether you’re facing an emergency or trying to fund a significant purchase, loans can certainly be the helping hand you need, especially the ones with fast personal loan approval online.

However, before you sign the dotted line, you need to consider whether or not acquiring a loan is the right way to go. After all, there are terms and conditions that you’ll have to adhere to.

To help you figure out whether or not you should apply for a personal loan, we’re going to cover everything you need to know about personal loans with online approval in this post.

What this article covers:

• Overview of Personal Loans
• Types of Personal Loans
• Personal Loan Interest Rates
• Online Approval Personal Loans
• Uses of Online Approval for Personal Loan
• Looking to Get a Personal Loan? We Can Help!

Overview of Personal Loans

As the name implies, personal loans are loans that you acquire for personal use. You can use the money to fund a purchase, pay for a wedding, deal with an emergency, do some renovation, or even go on vacation.

You can also acquire personal loans for consolidation into a single debt with a single repayment schedule. An example would be consolidating debts from multiple credit cards.

Generally, personal loans range from $2,000 to $100,000 and can be repaid over a period of up to 7 years. The exact range and repayment period can vary from one lender to another, though.

The great thing about personal loans is that they’re quite flexible compared to other types of loans. This means you can acquire a personal loan that’s tailor-fitted to your needs and financial situation.

Types of Personal Loans

There are two main types of personal loans: secured personal loans and unsecured personal loans. The primary difference between the two is that the former requires collateral, whereas the latter doesn’t.

Secured Loans

Secured personal loans are loans that require you to put up an asset of yours as collateral. If you default on your repayments with a secured loan, the lender will have the legal right to possess the asset you put up as collateral.

Some of the most common assets used as collateral include cars, boats, homes, jewellery, stocks, bonds, future paychecks, insurance policies, or anything else that’s of sufficient value with respect to the loan.

Secured loans are more common than unsecured loans because they’re less risky for lenders. If you default on a loan, the lender can seize your security asset, sell it at auction, and get their money back.

Since they’re less risky for lenders, secured loans tend to have lower interest rates and better repayment terms than their unsecured counterparts. They tend to come with strict spending restrictions, though.

Unsecured Loans

Unsecured personal loans are pretty much the exact opposite of secured loans. Such loans don’t require you to put up an asset such as your car or house as collateral.

Interest rates are significantly higher with unsecured loans compared to secured ones. Also, your credit history might have an effect on whether or not your loan is approved.

Luckily, Orange Loans offers personal loans for bad credit!

It’s worth noting that some lenders require you to provide a guarantor if it’s your first time getting an unsecured loan. Note also that providing a guarantor helps reduce the loan’s interest rate.

Unlike secured loans, there aren’t any spending restrictions on unsecured loans. You can spend the funds on whatever you want, be it an emergency or a vacation.

Though unsecured loans don’t require collateral, it doesn’t mean there won’t be any legal consequences if you don’t repay your loan, as the lender can take the matter to court!

Personal Loan Interest Rates

Whether you apply for a secured or unsecured loan, there’s no way around interest. You see, a loan repayment consists of two figures: principal and interest.

The principal figure is a portion of the amount you borrowed, while the interest figure is an extra amount that you pay the lender as a form of fee for lending you money.

Confused? Let’s put things into perspective using a simple example!

Let’s say you apply for a $50,000 loan that comes with an interest rate of 10% and a long repayment term of 5 years. Your monthly interest rate would be 0.83% (10% / 12 months) over a repayment term of 60 months.

In this case, your estimated monthly payment would be $1,062.35. The total amount that you’ll have to repay, including interest, would be $63,741, and the total interest to be paid would be $13,741.

You don’t have to carry out any calculations manually. You can simply use an online loan repayment calculator to figure out the details of your loan’s repayments, as well as generate an amortisation table.

Fixed or Variable Rate

Interest rates can be fixed or variable. With a fixed interest rate, your rate of interest won’t change throughout the entire duration of the loan. In other words, it won’t be affected by any market changes.

With variable interest, your rate of interest can increase or decrease based on market changes. This essentially means that your monthly repayments can change over the course of the loan’s duration.

If you’re someone who prefers predictable payments, then you should opt for a loan with a fixed interest. That aside, fixed interest is generally better because it’s not affected by potential market increases. 

Comparison Rate

Another thing you want to pay attention to when looking to get a personal loan is the comparison rate provided by the lender. It’s basically a representation of the true cost of your loan.

The comparison rate accounts for the loan’s interest rate, as well as any extra fees that you might need to pay, such as account-keeping fees or the common one-off establishment fee.

Online Approval Personal Loans

When it comes to the application process and approval of personal loans, things tend to vary between different lenders. 

However, the eligibility requirements of most lenders are as follows:

• You must be an Australian citizen or a permanent resident.
• You must be over the age of 18.
• You must have a valid proof of identity.
• You must be receiving sufficient income on a regular basis.
• You must have an active bank account.
• You must have an active phone number and email address.

In addition to the above-listed requirements, some lenders might inquire about your credit. Some do take credit history as a determining factor in terms of approval, while others inquire about it for other reasons.

Nowadays, you can apply for personal loans online. Online applications help reduce approval time significantly. As a matter of fact, most personal loans get approved in under 24 hours!

An online loan application will require you to attach some documentation, such as proof of identity and maybe even bank statements. Don’t worry; the latter can be provided with read-only access.

Once you’re approved for a loan, the lender will reach out to you via email with the details of your personal loan and a contract to sign. You should receive your funds in your bank account shortly after signing the contract.

Uses of Online Approval for Personal Loan

Some loans are intended for very specific purposes. For instance, car loans are intended for vehicular purposes, and mortgage loans are intended for house-purchasing purposes.

Personal loans, per contra, are flexible and can be used for a broad range of purposes. This is especially the case with unsecured personal loans since there are no spending restrictions on them.

Be that as it may, some lenders might still inquire about your reason for borrowing money. The ones that do so are mainly trying to assess creditworthiness.

Some of the things you can do with a personal loan include the following:

• Buying a new vehicle
• Consolidating debts
• Paying for renovations
• Paying for a wedding
• Paying for education
• Paying for medical bills
• Paying for a vacation

Looking to Get a Personal Loan? We Can Help!

Whether you’re looking for personal loans with instant online approval or any other type of loan, Orange Loans can be of help. We’re a lender-finder that can help pair you with the top lenders in Australia.

Applying for personal instant loans with Orange Loans is simple. You enter the loan amount you’re looking to borrow on our personal loan calculator and choose the ideal repayment period for your needs.

Then, you’ll be redirected to an online application form that you’ll need to fill out. Once you’re done with that, we’ll review your application and pair you with the most suitable lenders in our network.

Bear in mind that Orange Loans isn’t a direct lender. Also, we don’t set any fees or repayment terms. Our job is to pair you with the best possible lender in your area. All further proceedings will be between you and the lender.

Now that you know all about personal loans, click the “Apply Now” button, fill out the necessary information, and be ready for your funds to hit your bank account in under 24 hours.