What is an Unsecured Personal Loan?
An unsecured loan means that we don’t require a charge over any of your assets to qualify for a loan. We assess you based on your ability to repay us and your financial situation, which includes reviewing 90 days worth of bank transaction history.
Don’t worry, it’s totally secure and the entire process is online with no paperwork, so you can get your money faster. Don’t tie up your valuable assets with other money lenders that offer you a fraction of their real value.
A Moneyspot unsecured personal loan is on the same terms as our payday and cash advance loan products. That is, the repayments are aligned with the borrower’s pay day. This type of lending has experienced massive growth in the UK and US over the past decade and is becoming more popular in Australia because of its convenience. The entire process is online with no paperwork and you can have your money in less than an hour.
One of the major differences between Unsecured Personal Loans products in Australia and the rest of the world is the cap on fees introduced by the the Australian Government. This is good news for borrowers in that loans under $2000 and 12 months in duration have a cap consisting of a 20% establishment fee and a 4% monthly fee. It’s a simple fee structure that’s easy to understand and almost universally charged by all payday lenders. Most of our loans are 61 days or more in duration.
We can offer these small amounts economically because the entire process is online, from your application right through to when your loan is repaid. The application takes as little as 5 minutes and you’ll have an answer in less than an hour.
Please note there is no APR calculation as these loans are fee based.
Who uses Unsecured Personal Loans?
Unsecured personal loans are great for home renovations, going on holidays or paying off outstanding debts. You are able to borrow up to $2000 and have the money in your account within minutes depending on your bank, and this is possible because our entire process is online.
Unsecured Personal Loans and your Credit File
Credit files are routinely reviewed during the application process for your first Unsecured Personal loan with Moneyspot. Bankruptcy, judgements, defaults, and credit inquiries are all taken into account in the decision to extend credit to a new customer. At Moneyspot we will not lend to customers who have a record of bankruptcy or a magistrate’s court judgement against them.
A default on your credit file occurs when a debt has not been repaid. The most common defaults that we see are from utility and mobile phone companies. They remain on your file for 5 years, and whilst older defaults may not necessarily be an accurate depiction of your current financial circumstances, and your capacity to repay your current Unsecured Personal loan, recent defaults are and will result in a decline of your Unsecured Personal loan application.
What happens if things go wrong?
To comply with our responsible lending obligations and to ensure you don’t suffer any undue hardship, we make certain inquiries about your financial situation before we give you a loan. However sometimes things don’t go as planned and the result is a missed repayment.
While we do have late payment fees, we are very willing to listen to you and often, especially if you’ve made contact, substantially reduce and even waive fees. If you do find yourself in this situation, please don’t hesitate to contact us on 1300 048 156 or at firstname.lastname@example.org.
The information that you need to provide to Moneyspot
As discussed above, Moneyspot will verify your identity, in some cases check your credit file, and require the most recent 90 days of transaction history from the bank account into which your income is paid.
You do not have to send us paper copies of your bank statements – the easiest way to supply this information is to automatically download it via our online application. It’s secure, takes less than a minute, and will require your online banking user name and password.
If you have more than one bank account where you are paid income, you must provide 90 days of statements for each account. This information helps us assess the affordability of the repayments for the loan.
Other information may be required depending on your credit history, if there are or have been any other loan repayments, or your income has been irregular.
What if I am on Centrelink benefits?
If the majority of your income comes from Centrelink, we will not accept you for a loan. There are specific rules for customers in this category limiting the amount of repayments to 20% of your income, and there are specialist credit providers that service this demand.
Are there extra fees and charges?
There are extra fees if you fail to pay back your loan including a failed repayment fee of $35 each time a repayment is dishonoured or re-scheduled; a $50 collection fee if we have to send your loan to an external collection agency; and all collection agency fees (currently those fees are 20% of the outstanding balance referred to the collection agency).
Importantly, failing to repay a loan may result in a credit default listed against your name. The default can last up to 5 years and can adversely affect your chances of obtaining credit in the future.