Personal Loans

Secured Loan – A secured loan is most often used to purchase valuable assets such as cars; the vehicle (or other asset) is then used as security against the loan. Because the loan is asset backed, the interest rate is lower.

If you fail to make your repayments on a secured loan, the asset you have used as security may be repossessed to cover the outstanding balance on your loan.

Unsecured Loan – These loans are often taken out to cover the cost of smaller amounts such as a holiday or home renovation. With an unsecured loan the borrower isn’t providing any security against the loan.

This means that the interest rates are higher as there is no asset to be recovered in the event of a default.

Whatyou could use a personal loan for?

• Debt Consolidation – roll your debt into one easy to manage loan
• Holiday – need funds for a holiday with friends or family
• Renovation – home improvements made easy
• Wedding – can be costly, take the stress out of planning your big day

Our lenders provide you with the flexibility to choose between a fixed or variable rate on your unsecured personal loan.

Fixed Rate – A fixed rate offers you the comfort of knowing that your interest rate is ‘fixed’ and the certainty that your repayments will not change for the life of the loan. You will have the flexibility to make some additional repayments or pay out your loan ahead of the loan term, however fees will apply.

Variable Rate – With a variable rate loan, your loan rate and repayments may rise or fall as interest rates change. Unlike a fixed rate loan, variable rate loans give you the flexibility to make extra repayments or repay your loan in full ahead of the loan term, without paying any additional fees.

Furthermore, a credit score is generally provided by a credit reporting body and used to represent the creditworthiness of an applicant. Lenders will use credit scores to partly determine if you qualify for a loan, at what interest rate, and what credit limits. Many factors can impact your credit score including number of enquires, adverse credit listings and personal information held on your credit file.

If you are interested in a personal loan please contact us at hfinance today!