A personal loan is a great way to solve short and long term cash flow problems. Personal loans can help consolidate debt, pay bills and/or can help you out of an unexpected financial dilemma. With any agreement however you need to understand exactly what you are signing up for. At Linsa Finance, one of the many missions is to provide you, our customer(s), with full transparency on all aspects of your loan.
Understanding your personal finances is an essential component to taking out any loan. Whether small all large, we have put together a summary of tips so that you will have a clearer interpretation when taking out a personal finance.
Check your credit rating
Unfortunately a lot of time and energy can be wasted if you do not know or even have an idea about what your credit rating is. In some cases this is the deciding factor for obtaining a loan. So check out yours early so that there are no surprises!
Know the risks
Borrowing anything off anyone can be risky, that’s why at Linsa Finance we make sure that you can realistically afford the repayments. We will assess from your current bank statements the ability to prepare a straightforward budget for you.
We have your best interests first thus keeping you in a positive financial position. If by doing the budget we find that your repayments just don’t quite fit, they are happy to negotiate and talk through an amount that you can afford.
Check the fine print
When signing any documents, Linsa Finance will allow you the time and space to be able to read through anything and everything before signing. It is important to our team that we are open and upfront with you about the agreement and that you fully understand what your responsibilities are.
Know Your Loan Repayment Period
At Linsa Finance, we offer repayment terms of 3 months up to a maximum of 36 months. The term is decided on between the team at Linsa Finance and yourself (the client), and will be indicated by your personal circumstances and the amount of money being borrowed.
Secured/ Guarantor/ Unsecured Security
As with all things, the need to have security against your loan will depend purely on your individual circumstances. At Linsa Finance, they will lend money on motor vehicles, furniture, property, life insurance policies, share certificates and most other forms of negotiable securities. However, with any security put forward as an option, there must not be no outstanding money owing on the particular item.
If you are unable to provide your own security, but are able to arrange a Guarantor who has suitable security, then they will consider this as an option on your application.
In particular situations, Linsa Finance has the ability to offer you an unsecured loan up to the value of $1000.
Decide on what you can afford
If the purpose of obtaining a loan is to help consolidate debt or to buy something new, make sure that you have room in your current budget to afford the likely repayments. If there is not enough room in your budget then your finances can quickly spiral out of control, leaving you in a rather sticky situation!
The team at Linsa Finance can coach you through this process so you are aware of what you should be borrowing.
Loan Repayment Protection
At Linsa Finance, as part of our Loan Agreements, they offer their clients a comprehensive Repayment Waiver Plan. This means that in the event of an accident, sickness or death the payments to your loan will be covered and that you will not be charged penalties. For the small extra amount that it may cost, this will save you a lot of stress and extra worry if something untoward could happen in the future.
At Linsa Finance, we will do their utmost to help you with your financial situation. Therefore prior to your one-on-one interview make sure you gather the following documentation:
- Photo Identification (e.g. passport or drivers licence)
- Proof of Address
- 3 months of bank statements (3 months previous to application date)
If you do not have a form of photo identification issued by the NZ Government, please provide your birth certificate and one other form of photo I.D. e.g. University I.D card.
Having these items ready and waiting when applying for your loan will ensure that the process runs smoothly and as quickly as possible for you.
Applying for a loan can be a stressful situation, but having a better understanding of all the ‘bells n’ whistles’ of what a personal loan involves will help you breeze through the process in no time!