Where To Get Personal Loans

Banks are often the first place you’ll go to look for and apply for a loan. 

Many New Zealanders have a long relationship with their bank and consider them stable, trusted institutions. While they’re unlikely to be the cheapest loans available, most banks provide decent loan offers at reasonable rates. 

• Lower initial fees. 
• Finance can be added to an existing mortgage
• Higher rates of interest. 
• There may be penalties or fees for early repayment.

If you’re applying for a personal loan with your bank, the process will be slower than other non-traditional lenders, though this just reflects the established and somewhat rigid process of loan approval through banks in general. 

This means that there’s often less flexibility offered in terms of payment and negotiation on fees than through other lenders, which is why many people who do apply for loans with their bank will look for ways to repay their loan sooner to reduce costs as much as possible. 

Thankfully, many loans offered by banks will include extra payment options to allow this - just make sure that when you’re applying to read the terms and conditions of your loan to make sure that repaying your loan early won’t incur extra charges. 

Many dealerships that sell cars, caravans, motorcycles, or boats will offer finance as well. 

These loans are often convenient and include an easy application process - you can generally apply at the dealership when you purchase your vehicle - but they’re rarely good value compared to loans from established lenders. 

• Have higher interest rates and fees. 
• Have less favourable repayment terms. 
• Suitable if you are looking to finance your vehicle immediately at the time of purchase. 

Applying for car finance at a dealership can be convenient for many people; simply choose a car and receive finance at the same time. However, if you’re looking for the cheapest loan, the interest rates and fees included with dealership loans will often be higher than applying with a separate lender.