Small Personal Loans

Of course, these personal loans do not have to be used for business only. You can as well take out cash loans for your own private needs. This can range from organising a party, repairing your car, buying a phone or even going on a weekend vacation. Small personal loans are often easy to apply for and can hit your bank account on the same day.

What are small personal loans?

Small personal loans or instant loans are loans that can be taken out by anyone as long as they meet the eligibility criteria of the financial institution that is offering the loans. In most cases, you have to have attained the legal age, live in Australia and hold some form of employment. Small personal loans are an excellent solution for anyone that wants to raise cash now.

Factors that impact small personal loans

If you decide to take out a personal loan for your business or private needs, remember that the following issues are likely to impact your loan approval, amount, and interest rates.

Credit score and history 

Believe it or not, your credit score and financial behaviour can be monitored by the government and various financial institutions. That is why many people who are financially conscious tend to be keen on how they make and spend their money. 

If you are the type of person that tends to take out loans or acquire things on credit but fail to pay on time, chances are that you have a bad credit score. Instead of continuing with such a trend, consider paying all your outstanding bills on time and settle all your loans according to the agreement.

This will ultimately have a good impact on your credit score and history. Many financial institutions take the time to assess your credit score and history before determining if you are a good client. Individuals with good credit scores and history can secure loans relatively fast. Additionally, they get such loans at low rates.

Individuals with a bad credit score and history tend to have a harder time accessing cash loans online. They may have to put up something of value as collateral before they are given a small personal loan. Nonetheless, Ozzie Loans strives to serve everyone as best as possible, which is why you should consider applying for a loan with them.

Your income 

Money lenders often impose an income requirement before approving any loans. This means that you must be earning an income from time to time. Whether the income is in the form of a monthly salary, daily wage or business profit, you must be willing to submit documents that show your income flow. 

A bank statement is most often used to determine the eligibility of the loan seeker. In certain instances, financial institutions only lend to people who have a fixed minimum income. However, there are other institutions that are flexible and will advance cash loans to anyone as long as they have some form of income. 

The amount of money you earn as income may impact the amount you receive in the form of a small personal loan in Australia. Those who earn a lot are likely to get a higher loan offer, while those who earn a little may get a smaller amount in the form of a personal loan. Money lenders set this requirement to ensure that the borrower has the means to repay the money provided as a loan.

Debt to income ratio 

The debt to income ratio is often expressed in the form of a percentage. It represents the borrower’s gross monthly income that goes toward the servicing of outstanding debts. DTI offers lenders enough information to predict whether a borrower will be able to pay different debts without facing difficulties. 

A good DTI makes it possible for the borrower to take out more than one loan and still be able to service each of them according to the various terms of agreement. With such information, Ozzie Loans can determine your creditworthiness and may extend a personal loan offer to you even if you have other outstanding loans.

Collateral 

There are two types of personal loans, with the first being unsecured and the other being secured. An unsecured personal loan can be an excellent option for individuals who have a good credit score and earn a good monthly income. Such an individual is likely to get a large loan amount and low interest rates.

Individuals that opt for a secured personal loan may have to produce an item of value to act as security or collateral for the amount of money being sought. Some items that may be put up as collateral include vehicles, land, house, jewellery, appliances and bank accounts in certain instances.

The collateral you put up is likely to determine the amount of money you receive in the form of a small personal loan. A new model car may earn you more in terms of the loan amount compared to an old model version. A house may earn you more money than your home appliances. The lender often weighs the value of collateral against the amount you are requesting before determining the right amount, terms and conditions for your personal needs.

Tips for getting a small personal loan approved

Keep the following tips in mind when thinking of applying for a small personal loan through Ozzie Loans or any other financial institution.

Pay attention to your credit score 

Your credit score can easily change from bad to good if you make it a point to pay all your bills on time and settle any outstanding loans according to the terms and conditions stipulated. A good score will earn you good interest rates and high loan limits.

Be truthful 

When filling in your application form, don’t include any inaccurate information. Try to be as truthful as possible because the financial institution you are applying to will probably run certain checks to verify that what you are saying is accurate. The loan amount you get may partly depend on your honesty.

Provide what is required 

Money lenders often require some information to keep you on their records. This may include your current physical address, your employment status, the amount you earn as income and your legal name.

Repay on time 

Once you have received a small personal loan, try and pay it accordingly. This will not only increase your loan limits but will help you get better personal loan interest rates next time. Additionally, you are likely to improve your credit score.