Applying for online loans might feel a little different to applying in person, but at the end of the day, it’s much the same. You have the same loan options and repayment terms, and a selection of offers to compare.
Personal loans and short term loans are provided by lenders who operate solely online, or by lenders with physical branches, such as a bank. With the need for more efficient processes in our daily lives and fewer brick and mortar financial institutions than before, borrowing money online is becoming the new normal for New Zealanders.
The Lending People - Personal Loan
Secured and unsecured loans
- 100% online
The Lending People - Personal Loan
Apply today to get a decision within 60 seconds for a secured or unsecured loan up to $75,000.
- Interest rate from: 6.99%
- Min loan amount: $2,000
- Loan term: 1 to 7 years
- Fees: Broker fee of $250 to $995 depending on size and type of loan. Other fees vary with lender.
Eligibility: Be 18+, an NZ citizen or permanent resident, employed and earning at least $500 per week.
The main benefit of online loans is that they are more efficient and convenient. You can complete an application from your mobile or laptop at a time that suits you, and not have to worry about spending your lunch break filling out forms at an office.
Online lenders are often able to offer competitive rates and fees. This is because having few or no physical branches saves them money, letting them pass the savings on to you.
While a handful of lenders still require you to visit a branch to verify your ID and income or to print and sign forms, many lenders in New Zealand now offer a completely digital process. Reviewing your bank statements is done by accessing your online banking with secure software, and you can send a photo of your identification and one of you holding your ID to verify your identity.
Loan agreements can be signed with a digital signature, so if you don’t have printer, this makes the process faster. Depending on the lender, you may have money in your account in just a few hours, or within 24-48 hours of signing the contract.
Unsecured personal loans. Providers offer these loans according to your credit history and financial situation. Because a tangible asset doesn’t support them, unsecured loans typically have higher interest rates than secured loans. Unsecured loans can be small loans of between $1,000 and $5,000, or more sizable loans of up to $50,000 or more.
Secured personal loans. You take out a secured loan using an asset, such as a car or property, as collateral. You can either use an asset you already own as security or use the item you wish to purchase such as a car or boat. If you default on the loan, the lender will take possession of the asset. This makes it less risky for the lender and translates into lower rates and fees for you.
Short-term loans. These are small loans taken out for a short period, usually between 16 days and one year. Also known as a payday loan or cash loan, the purpose of a short-term loan is to offer a relatively small amount of money quickly and with minimal credit score requirements. The interest rates on these are usually higher than other forms of credit.
Bad credit loans. Someone with a bad credit history might have difficulty finding a loan, and this is where a bad credit loan comes in. These come with flexible eligibility criteria, with lenders basing approval on whether or not you can afford the repayments. They determine this by your income, employment, assets and debt. Bad credit loans typically have higher interest rates and fees than other types of loans, to offset the less-stringent application requirements.
Peer-to-peer (P2P) loans. Also known as marketplace lending, this type of loan lets you borrow money without going through a bank or typical lender. The P2P lender acts as a facilitator with investors providing the loan funds to borrowers. When you take out a P2P loan, lenders usually base the interest rate on your credit score. Getting a P2P loan online typically means lower interest rates than with other lenders, but the precise terms and conditions vary, and requirements may be strict.
When comparing online loans there are a few different features to keep in mind. Here are some things to look at when weighing up your options:
Fees. The fees charged on online loans can be lower because an online lender has fewer overheads than lenders with physical branches. Consider the upfront fees of the loan that are charged to cover the costs of setting up your loan, as well as any ongoing fees that may be charged monthly or annually.
Interest rates. When comparing interest rates on personal loans look at whether the advertised rate is only applicable for an introductory offer period. Many online lenders advertise their interest rates as a range, and the rate you get is determined by your credit history and current financial situation. Remember, low rates do not automatically mean a better loan, so consider the rates along with all the other features offered by the loan.
Loan terms. The loan terms for online loans can range from as little as 16 days for short term loans to as long as seven years for personal loans. Many lenders provide a loan calculator on their website so you can work out how much repayments will be for different loan terms. Be sure to choose a loan term that will be manageable for you.
Loan amount. Check whether the lender can offer you the amount you want to borrow. Some lenders may not be able to offer you the full advertised loan amount due to your credit history or over the value of your asset for a secured personal loan.
Loan purpose. The reason you are applying for a personal loan should also help to inform your decision as to which lender to choose. For instance, if you are looking to finance a car then you might want to look at a secured personal loan or a lender that specialises in car finance.
Approval and payout time. If you are needing funds urgently, look for a lender that promises quick approval. Some lenders can give you an answer on your loan application within 60 seconds or 60 minutes, and have the money in your account the same day.
Once you know what type of loan you need, borrowing online is a straightforward process.
- Compare your options in the table above and click “Go to Site” when you find the right lender for you.
- Fill out the loan application form provided and submit it. You can usually do it all on the website in as little as five minutes.
- Wait for an answer. Many online lenders will reply with their decision in under an hour, so you usually don’t have to wait long.
You will usually need to supply the following with your application:
- Photo identification
- Proof of address
- Information regarding your income and employment
- Details of any assets and liabilities you have
If you are filling out an online application and don’t have all the required information, most lenders will give you the option of saving the application and coming back to it later. Once you’ve completed the application you’ll usually be given a way to track your application’s progress, such as by providing you with an application number. You may be conditionally approved instantly or you might be contacted for more information.