A personal loan is just what it sounds like - a loan for you to do pretty much whatever you want with (within reason, of course!).
Unlike many other types of loans, personal loans are pretty straightforward: you borrow a specified amount of money, and then repay the debt (with interest) in equal payments over an agreed term. It might be surprising to hear, but personal loans are often cheaper than credit cards, which don't encourage a repayment schedule and also encourage you to keep making purchases over time.
At Sunshine Loans, we also allow you to make additional repayments outside of your monthly obligations, with no associated fees. We want to encourage savvy financial behaviour and help you get back on your feet quicker.
As we mentioned earlier, there are a few types of personal loans out there. The four main ones are unsecured personal loans, secured personal loans, fixed-rate loans and variable-rate loans. All of them differ slightly.
Simply put, a secured loan is a loan guaranteed by an asset. This could be a car, or something of financial value, such as jewellery. The idea is that, if you default (fail to pay back) on your loan, your lending institution will claim your asset as collateral, so they don't end up losing money themselves.
Because of this security factor, secured personal loans come with lower interest rates than their unsecured counterparts and may not require as high of a credit score as an unsecured personal loan.
The opposite of a secured personal loan - this means that you do not offer up a valuable asset in order to take out the loan, and instead the lender trusts your credit score in order to indicate whether you will be a viable borrower. Because of this, unsecured personal loans are considered to be riskier from the lender's point of view and tend to come with higher interest rates.
A fixed-rate personal loan is defined by its fixed interest rate - that is, it remains the same over the life of the loan, no matter how the market moves. This can be to both your advantage and disadvantage. If interest rates are lowered, you may be stuck repaying extra money. However, you can also lock yourself into a good rate that suits your budget in the long term, if interest rates ever go up.
A variable loan is the opposite of a fixed-rate loan: that is, your interest repayments will reflect what's going on in the market. Variable loans are interesting, since a declining interest rate means that your repayments will decrease as well. However, if interest rates rise, you'll find that your repayments increase.
There are many reasons why you might need a personal loan: from home repairs to unexpected medical bills, some things can't wait.
Here are some situations in which you may find yourself needing a personal loan.
Personal loans for pensioners can be a tricky subject to approach. Some lenders will not let you borrow money if you cannot prove an income, and sometimes the pension does not count as income. Finding an affordable personal loan can be difficult - but we understand that life never stops, no matter your age.
Sometimes the bills just never seem to stop - and then an accident occurs. Or the car breaks down. When you're on a low income , a personal loan may be the thing you need to put a spring back in your step.
If your credit rating isn't quite up to scratch, it can be difficult to attain a personal loan, since a bad credit score is an indicator of a not-so-stable financial history. However, when you apply for a small loan of up to $2,000 with Sunshine Loans, we take your personal situation into account before making our decision.
Being unemployed is a stressful and difficult situation to deal with. If you need some money to help you get by in between jobs, personal loans for unemployed individuals do exist, allowing you to contribute part of your government benefits as a form of repayment.
It can be difficult to study and work a job that pays a decent wage. If you need some financial help while studying, a personal loan for students may be of great assistance to you.
We do express loans from $150 to $2,000.
As the rainy-day loan experts, we understand that often in life, when it rains, it pours. We understand that people sometimes need a little extra help, but we don't take advantage of the situation either. We are committed to our responsible lending practices, we have a swift application process, and we don't have any hidden fees. Plus, we can deposit money into your bank account as soon as the same day!
You'll need the following in order to apply for a personal loan: