If you got stuck in a scenario where you need money in a hurry, a personal loan may be a good option for you. With the advent of financial technology, also known as fintech, you may be able to get money deposited in your bank account immediately in the form of a personal loan.
A personal loan is an unsecured loan borrowed from a bank, online lenders or credit union without any collateral. The loan term is often fixed. You can use the loan amount for pretty much any purpose you want unlike mortgages or car loans.
In New Zealand getting a personal loan mainly depends on individual income level, employment history, repayment capacity and credit history. You may require the following documents to request a personal loan in New Zealand.
- Identity verification documents ( drivers licence, passport, ID card)
- Your citizenship certificate
- Proof of income ( some lenders may require bank statements, last three salary slips and if you are self-employed tax returns from last two years)
- Financial information ( some lenders also require information regarding assets, debts and liabilities)
Also, peer to peer lending is growing day by day in New Zealand. There are many P2P lenders licensed by The Financial Markets Authority which provide much faster service with lower interest rates. Have a look at our in-depth review on three best P2P lenders in New Zealand!
P2P Lenders in New Zealand
1.) Harmony
Harmony is the first licensed peer to peer marketplace, launched in 2014 in New Zealand. They offer unsecured personal loans up to $50,000 with no early repayment fee with an interest rate of 6.99% to 29.99%. You can apply for a minimum loan amount of $2,000 to a maximum of $50,000. Their loan term is 36 to 60 months. The approved online applications are funded in 24 hours.¹
2.) Nectar Personal Loan
Nectar is 100% Kiwi owned. They have a flexible loan term ranging from 6 months to 4 years with fixed interest rates between 8.95% to 29.95%. They offer a large range of loan sizes between $1,000 and $20,000 with a turnaround time of 24 hours. Nectar provides faster, easier and cheaper loans even if you have a less than desirable credit history.
3.) NZCU South Unsecured Personal Loan
They give you quick access to funds with long loan terms up to 7 years. The loan amount ranges from $2,000 to $50,000 with access to funds within 24hours. NZCU doesn’t charge a monthly service fee. The interest rates vary depending on loan size between 10.90% to 28.90%. For fast finance and emergency use, NZCU is the best option.²
Now let’s look at some reputable banks in New Zealand which offer personal loans at lower interest rates than their competitors.
1.) The Co-operative Bank
The Co-operative Bank is a well-known bank in New Zealand. It provides everyday banking services, savings options, loans, insurance and small banking throughout the country. It only takes 5-10 minutes to complete your online application. The interest rates range from 6.99% to 19.99% per annum depending on your credit and financial situation.³ If you are currently banking with the cooperative Bank you can get extra discounts and lower interest rates. The repayment period ranges from 6 months to 60 months. There are no early repayment charges.
2.) ANZ Bank
ANZ Bank is New Zealand’s largest financial services group. It provides banking services, investment and payment solutions, and asset finance. The ANZ offers fixed rate personal loans i.e. 12.90% interest rate per annum. The loan amount ranges between $3,000 to $40,000 with more flexible repayment terms from 6 months to 7 years. Once approved you can get your desired amount the next business day.⁴
3.) Auckland Savings Bank (ASB)
ASB bank offers a wide range of financial services including retail, rural and business banking, funds management, as well as insurance. They provide personal loans with fixed interest rates of 12.95% to 19.95% per annum.⁵ The unsecured loan has a minimum amount of $2,000 and up. Repayment can be made over an extended period of up to 7 years, or in as little as 6 months. Loans can be approved within 24 hours and you will get paid within 48 hours.
Do Your Research
A personal loan can help you reach your financial goals, overcome financial shortfalls, and help you improve your debt situation. It’s essential to take time to look around and compare different options before applying for a personal loan. Reach out different lenders online — you’ll not only save time but get a better understanding of loan amounts, repayment terms and other conditions in the process.
[1] “Finder.” Harmoney. Accessed 17 june, 2020. https://www.harmoney.co.nz/finder?utm_source=finder&utm_medium=cpa&utm_campaign=cpa&utm_term=table&utm_content=table
[2] Barry, Elizabeth, and Elizabeth Barry. “Compare Personal Loan Options for Migrants.” Finder NZ. March 18, 2020. Accessed 17 june, 2020. https://www.finder.com/nz/personal-loans-for-migrants.
[3] The Co-operative Bank. Accessed 17 june, 2020. https://www.co-operativebank.co.nz/open-a/personal-loan/bf735b85-b8b3-4980-8c80-0aee76217724/landing.
[4] “Personal Loans.” ANZ. Accessed 17 june, 2020. https://www.anz.co.nz/personal/loans/.
[5] “Personal Loan Interest Rates and Fees: ASB.” ASB Bank. Accessed 17 june, 2020. https://www.asb.co.nz/personal-loans/interest-rates-and-fees.html.