Personal loan FAQs
Get your head around personal loans
Personal loans are, you guessed it, personal. While they can help you make big things happen, it’s important to understand what you’re getting into. On this page we’ll take you through some of the common questions that come up when our customers are looking to take out a personal loan.
Understanding the basics of personal loans
What should I look out for when considering a personal loan?
It’s important that you do your research when deciding whether a personal loan is a good idea for you, and what personal loan product would suit you best. We’ve got a checklist for what you should consider over here, but broadly speaking make sure you answer these questions before taking out a loan:
- Is there an application fee, and if so how much is it?
- Are there any set up fees or dealership fees for arranging finance?
- Will you be penalised if you pay out the loan early?
- Are there any ongoing fees, such as monthly account keeping fees or payment fees?
- Is the interest rate fixed or variable?
- How does the interest rate compare with other institutions?
- Can you make additional repayments without penalty?
What’s the difference between secured and unsecured loans?
Secured personal loans generally have lower interest rates and require an asset to secure the loan. This means that if you can’t make the repayments on your loan, you may have to give up the asset to help cover the outstanding balance.
Unsecured loans, on the other hand, don’t require assets as security. But as a result they usually have higher interest rates and stricter requirements in order to qualify.
What to expect from the application process
What should I bring to my appointment?
The documentation we need to get your personal loan application rolling depends on your circumstances.
If you’re employed:
- 2 most recent payslips (or letter from employer stating commencement date of employment and net weekly wage)
- Current group certificate/PAYG payment summary.
If you’re self employed:
- The last 2 years’ financial statements and income tax returns
If you’re looking to consolidate credit card or personal loan debt:
- Statements showing the transactions and balances for each debt or card.
If you have other debts not held with Hume Bank:
- A current statement for any of these debts (including home loans, credit cards and other personal loans).
If you have savings or deposit accounts not held with Hume Bank:
- The last 3 months’ statements as evidence of savings/deposits
What happens after I apply?
Once you’ve completed an application, one of our lenders will contact you within 3 to 5 business days. They’ll figure out what additional documentation might be required, and will organise a way for you to get that information to us.
If your application is approved, we’ll let you know when your loan documents are ready to sign – which you can do online.
If your application is unsuccessful we’ll let you know by email. And if you have any questions, you can always give us a call.
Can’t find what you’re looking for?
Don’t worry – it happens to the best of us. Lucky for you, there are plenty of people at Hume Bank ready to help. All you have to do is shoot us an email, give us a call or drop by a branch.
Getting the most out of your personal loan
How can I repay my loan faster and therefore pay less interest?
One simple way to get ahead on your personal loan is to pay your loan fortnightly or weekly instead of monthly. This means you will make the equivalent of 13 monthly payments a year instead of 12.
Confused yet? Let’s try an example:
- Imagine you had a $30,000 secured loan at 6.95%pa over 5 years. If you made payments of $150 per week instead of $593 per month, you would reduce the loan term by 6 months and pay $590 less in interest charges.
Can I make additional repayments on my personal loan?
Absolutely! This is another great way to pick up speed on paying off your loan. If you find that you’re covering your expenses and progressing well with your savings, paying off a personal loan is one of the best things you can do for your financial health. And that’s coming from an institution that benefits from your loan! Regardless, we’ve designed our personal loans with that kind of flexibility in mind, so you can make additional repayments at any time with no penalty.
How can I figure out what repayments are right for me?
Personal loans are just that – personal. They’re different for everyone who takes one out. To help you decide what configuration of our personal loan would work best for you, try our loan repayment calculator. You can use it to test different repayment amounts and experiment with repayment frequency to see what you could save.