Car or personal Loan$

What is a loan? 

A loan is money borrowed from a bank or financial institution. The borrower (you) agrees to pay back the principal amount of loan plus interest. 

For example: you borrow $5000 to buy a car. You want to have 5 years to pay it back. The COST of the loan agreement is that you will 'interest' on the original (principal) loan amount. Some banks might offer you a 'fixed term' for the interest, like 6.24% per annum (year). for simplicity, use a loan calculator  to find out how much you need to pay back in TOTAL. For this example it is $5826.

Although car loans are a type of personal loan, there are subtle differences between the two products

If you’re trying to get a car or personal loan, you can speed up the process by being organised before you apply. This means making sure you have all your supporting documents in order:

Here's a quick rundown of the documents most borrowers need:

• Identification documents so your lender can verify your identity.

  1. Australian Driver’s Licence OR Australian Passport

• Income documents so your lender knows you have enough income to repay the loan.

  1. Your most recent payslip

  2. Your bank statements from the last three months, evidencing permanent employment base salary, allowances, overtime and bonuses

  3. Your bank statements from the last six months, evidencing commission, casual, temporary and seasonal income

  4. A letter from your employer can also be used to demonstrate commission and bonuses received.  

• Government Payments

We will need one of the below:

1. Your bank statements from the last six months OR

2. Letter or statement from the relevant government department, showing the regular benefit amount  

The bank statement, letter or government statement needs to be dated within six weeks of application being submitted.    Applications that are solely reliant on government payments (excluding pensions) are ineligible.

• Superannuation Fund Income

1. We will need a statement or letter from your Superannuation Fund outlining the indexed pension amount or annuity OR a bank statement from the last six months.