Low rate personal loans Presented by Jason Beale March 2016
Low rate personal loansPresented by Jason Beale
March 2016
Introduction - Looking for a personal loan
• Is the interest rate competitive?•What are the fees and charges?• Is there flexibility with loan repayments?•What is the service like?•What are the bank’s values?
Content
•Who is Bank Australia?• The Big Four Banks vs. Bank Australia• Example loan calculation• Benefits of a personal loan from Bank Australia
Who is Bank Australia?
• Operating since 1957
• In 2011 mecu (Members and Education Credit Union)
became Australia's first (and largest) mutual bank
• Mutual banks are customer-owned banks that reinvest their
earnings into better rates and services for their members
Who is Bank Australia?
• In 2011 mecu (Members and Education Credit Union)
became Australia's first (and largest) mutual bank
• Mutual banks are customer-owned banks that reinvest
their earnings into better rates and services for their
members
• In 2015 the bank’s name changed to Bank Australia
• Known for its conservative, responsible approach to
banking
• Committed to values-based business practices that
promote positive environmental, social, and economic
outcomes
The Big Four banks
Personal loaninterest rates
Bank Australia
Personal loaninterest rates
Example loan calculation
• Jack is a hip young
hairdresser with a
steady job who
usually catches the
train to work
• He wants to buy a
motorcycle so he can
ride to work instead
Example loan calculation
• Jack is also
concerned about
the environment
• So he decides to
buy an all electric
Zero FX 5.7
• It sells for $18,990
Loan calculationTo determine the fixed payments and total interest we need
• Amount borrowed (Principal) • Interest rate• Repayment frequency (Weekly, Fortnightly, Monthly)• Length of the loan (Term)• Additional fees and charges
Loan calculationBank of Australia personal loan
• Amount borrowed (Principal) = $18,990• Interest rate = 12.39%• Repayment frequency = Weekly• Length of the loan (Term) = 5 years• Additional fees and charges = no fees
Loan calculationNational Australia BankMonthly fees ($10 p/m over 5 years) 600Interest (26,249-18,990) 7,259TOTAL COST $ 7,859
Bank AustraliaEstablishment fee 150Interest (25,498-18,990) 6,508TOTAL COST $ 6,658 YOU SAVE $ 1,201
Loan calculationNational Australia Bank
Monthly fees ($10 pm over 5 years) 600Interest (26,294-18,990) 7,259 TOTAL COST $ 7,859
Bank Australia (Home Owner Rate)
Establishment fee 150Interest (23,266-18,990) 4,276TOTAL COST $ 4,426 YOU SAVE $ 3,433
Benefits of Bank Australia’s Personal Loan
• Lower interest rates
• No monthly fee
• Discounted rates for home owners
• Flexible repayments
Benefits of Bank Australia’s Personal Loan
• Not-for-profit, customer-owned bank
• Committed to sustainability and community development
• Personal service at six branches across Melbourne
(CBD, Fitzroy, Kew, Mt Waverley, Taylors Lakes, Ringwood)
and at 11 branches across country Victoria
Other things to consider
• Bank Australia has a conservative lending policy
• Be ready for a detailed financial assessment
• And a careful application process
FAQs
• What are the fees and charges?Establishment fee is $150, waived where loan is for sustainable home improvements. No monthly fees.
• What is the minimum loan amount?
$1,000
• What terms are available?
Minimum: 1 year. Maximum: 10 years
• How often can I make repayments?
Weekly, Fortnightly or Monthly
FAQs• Can I make extra repayments?
Yes, plus redraw facility if you are a home owner
• Do I need security for the loan?
Unsecured loans possible up to $20,000 or $30,000
• Is the interest rate fixed or variable?
Variable interest rates apply
• Can I pay out the loan early?
Yes. There is no penalty for early repayment
Question Time
https://bankaust.com.au