Personal Loans!

Personal loans are a great way to fund items that don’t have the provision to be offered as security against a loan.

Personal loans are a form of installment credit. Unlike a credit card however, a personal loan delivers a one-time payment of cash to the borrower. Then, the borrower repays that amount plus interest in regular installments (known as loan repayments) over the lifetime of the loan (known as the loan term).

A personal loan can have a fixed or variable interest rate, depending on the clients preference. A fixed interest rate will be locked in for the duration of the loan, creating stability in loan repayments, whereas a variable interest rate may fluctuate depending on what the banks variable interest rates are.

Usually the minimum amount for a personal loan is $5,000 and the maximum can be as high as $100,000. This can vary dependent on the lender, but as a guide these are the minimum and maximum loan amounts you can apply for.

A personal loan can be used to purchase an item such as, but not limited to:

• Vehicle

• Motorbike

• Holiday

• Caravan

• Medical bills

• Debt consolidation

• Technology

• Education costs

• Renovations

Of course there are many other items that can be funded via a personal loan, and it’s worth noting that the loan term of a personal loan is much smaller than that of a home loan. It is usually between 5 - 10 years.

Personal loans are also a great way to start building your credit rating. To find out more about personal loans please contact FIMA Finance:

Phone: 0409 563 892

Email: Jackie@fimafinance.com

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