A personal loan is a set amount of money borrowed from a lender and repaid over a fixed term with interest. It can cover various expenses, such as consolidating debt, funding home repairs, covering medical bills, or financing major purchases.
Loan terms typically range from one to seven years, with repayments made in fixed monthly instalments.
There are two types of personal loans: secured and unsecured. Secured loans require collateral, such as a vehicle or savings account, while unsecured loans are approved based on creditworthiness.
Lenders consider factors such as income, credit score, and debt-to-income ratio to determine loan eligibility and interest rates.
Personal loans provide flexibility in how funds are used and can help manage both planned and unforeseen financial obligations effectively.
Borrowers apply for a loan, specifying the amount needed and providing necessary documentation.
The lender reviews income, credit history, and overall financial stability to assess eligibility.
Approved borrowers receive the loan amount in a lump sum.
The borrower repays the loan in fixed monthly instalments over the agreed term until the balance is cleared.
Personal loans can be used for:
Define the purpose and amount of the loan.
Compare interest rates, repayment terms, and fees from different lenders.
Gather proof of income, credit history, and identification.
Complete the application and provide the necessary documentation.
Receive funds and begin repayment according to the loan agreement.
Personal loans provide flexibility in how funds are used and can help manage both planned and unforeseen financial obligations effectively.
Vital Insurance Pty Ltd are authorised representative (No.294915/463211) of United Insurance Group Pty Ltd AFSL No.327131.
© Vital Financial Group 2025. All Rights Reserved. ABN - 281 405 202 25.
Ben Tutton (Authorised Representative No. 294915), Vital Life Insurance Pty Ltd (ABN 45 654 028 878 / CAR 1293254) are Authorised Representatives of Sustainable Life Solutions Pty Ltd (ABN 66 655 297 886 / AFSL 536966).
Vital Homeloans Pty Ltd 2025. All Rights Reserved.
ABN - 976 200 876 49 ACN - 620087649.
License: Vital Homeloans Pty Ltd and Raelene Hutchings are Authorised Credit Representatives (No 501910/502264) of QED Credit Services Pty Ltd ACL No 38785.
Vital Asset Finance Pty Ltd ABN 87 659 026 703 is Authorised under Simple Finance Group Australia Pty Ltd T/A Dealify Australian Credit Licence 540378.
