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Personal Loans

Personal loans are normally unsecured facilities offered by banks, credit unions, and online lenders that provide borrowers with an amount of money that can be used for various purposes.

No deposit is required, with lenders normally able to assess & approve your situation within a matter of hours (normally though it’s a few days).

Being unsecured, meaning they are not backed by collateral, such as a car, boat or house.
This means they are more risky to a lender & that interest rates are generally higher normally i.e. anywhere from 10-20%, or more.

Personal loans are great if only requiring small amounts of between $1,000-$50,000 that can be repaid quickly.

Loan terms are usually from 1-5 years, with some lenders such as CBA allowing up to 7 years.

Like vehicle loans, be mindful that if you do plan on taking out a personal loan, that commitment could greatly effect your borrowing capacity towards a home.
In most instances, first home buyers will need to have fully repaid their personal loan or car loans, prior to being able to borrow enough for a home loan.

Here’s a brief overview of personal loans and their benefits:

  1. Flexible Use of Funds: One of the primary benefits of personal loans is their flexibility. Borrowers can use the funds for a wide range of purposes, including debt consolidation, home improvements, medical expenses, wedding costs, vacation expenses, or unexpected emergencies. Unlike other types of loans that may be earmarked for specific purposes, personal loans offer borrowers the freedom to use the funds as they see fit.

  2. No Collateral Required: Personal loans are typically unsecured, meaning borrowers are not required to pledge collateral to secure the loan. This reduces the risk for borrowers who may not have assets to offer as collateral or who are reluctant to put their assets at risk. However, it’s essential to note that unsecured loans may come with higher interest rates compared to secured loans.

  3. Quick Access to Funds: Personal loans often have a streamlined application and approval process, allowing borrowers to access funds quickly when they need them most. Many lenders offer online applications, instant decisions, and fast funding, making personal loans an attractive option for covering unexpected expenses or taking advantage of time-sensitive opportunities.

  4. Fixed Interest Rates and Payments: Unlike credit cards, which typically have variable interest rates, personal loans often come with fixed interest rates and fixed monthly payments. This provides borrowers with predictability and stability, making it easier to budget and plan for repayment. Additionally, fixed rates protect borrowers from interest rate fluctuations that could increase their monthly payments over time.

  5. Debt Consolidation: Personal loans can be an effective tool for consolidating high-interest debt from multiple sources into a single, more manageable loan. By consolidating debts such as credit card balances or medical bills into a personal loan with a lower interest rate, borrowers can potentially save money on interest and simplify their monthly payments.

  6. Credit Building: Timely repayment of a personal loan can help borrowers build or improve their credit scores. Making consistent, on-time payments demonstrates responsible financial behavior to creditors and credit bureaus, which can positively impact creditworthiness over time. This can be especially beneficial for individuals looking to establish a credit history or rebuild their credit after past financial challenges.


In summary, personal loans offer borrowers flexibility, convenience, and accessibility, making them a valuable financial tool for a variety of purposes. Whether used for sporting goods, boys toys, holidays, debt consolidation, budget home improvements, or unexpected expenses, personal loans provide borrowers with quick access to funds and predictable repayment terms.

We have access to several personal loan options and multiple systems at Smyth Loan Co, ensuring you get the best suited loan towards your needs.

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