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First Option Bank Variable Personal Loan
Get a variable or fixed rate Personal Loan from First Option Bank, and don't pay any penalties for extra payments.
From 13.99% (variable)
Interest Rate (p.a.)
14.25%
Comparison Rate (p.a.)
$2,000
Min Loan Amount
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Details
| Product Name | First Option Bank Variable Personal Loan |
|---|---|
| Interest Rate (p.a.) | From 13.99% (variable) |
| Comparison Rate (p.a.) | 14.25% |
| Interest Rate Type | Variable |
| Min Loan Amount | $2,000 |
First Option Credit Union has now been rebranded to First Option Bank. All product information here is correct.
What to know before you borrow
If you opt for the variable rate on this Personal Loan, you can benefit by any fall in interest rates in the future. However, the fixed rate will keep your repayments the same and make for easy budgeting. You can apply for this loan for different reasons, from going on a holiday to paying medical bills to getting married and more. You don't have to pay any monthly or annual fees, and this loan enables you to make repayments as per your pay schedule. The fact that extra repayments and early payouts don't attract penalties is noteworthy, as it the loan's redraw facility.
Features of the First Option Bank Variable Personal Loan
A number of features go into making this unsecured personal loan a competitive offering, and here's what you need to know if you're considering applying.
- Minimal fees. This loan does not attract any ongoing monthly or annual account-keeping fees, as can be the case with several other personal loans. There are certain other fees you would have to pay.
- Varying loan terms. Depending on the amount you borrow and your ability to make periodical repayments, you can choose loans terms from 1 to 7 years.
- Low minimum amount. While you have to borrow a minimum of around $5,000 through several personal loans, with this one the minimum you can borrow is $2,000, so you don't have to end up borrowing more than you really need.
- Repayment flexibility. Repayment flexibility comes in the form of you being able to make weekly, fortnightly, or monthly repayments.
- Interest rate. Both fixed and variable rate options are available. For the variable rate loan, it stands at a competitive 13.99% p.a.
- Extra payments. You can make additional payments towards your loan at any time without worrying about penalties. This enables you to pay the loan off sooner and save in the form of interest.
- Redraw facility. You can access the money you pay as extra payments through a redraw facility. In this case, a redraw fee and a minimum redraw amount apply.
- Early payouts. If you end up paying the loan before schedule, you don't have to pay any early repayment penalty.
The costs that come with this loan
While the First Option Bank Variable Personal Loan does not attract any ongoing account-keeping fees, there are certain other fees and charges you should know of ahead of time, and First Option gives you a clear indication of what you might end up paying during the course of the loan. Here's what the basic fee structure looks like.
- Monthly fee: $0
- Annual fee: $0
- Administration fee: $175 (one time)
- Redraw fee: $10 (for each instance)
- Direct debit dishonour fee: $16 (for each instance)
How to apply for the First Option Bank Variable Personal Loan
You can apply online, over the phone, or by visiting any First Option Bank branch. Make sure you meet the required eligibility criteria, as listed below:
- You are over 18 years of age
- You are a permanent Australian resident
- You have a steady source of income
- You have good credit history
In order to complete the application you have to provide different kinds of information, so keep the following close at hand.
- Identification documents like your driver's license, passport, birth certificate, or Medicare card
- Salaried individuals should provide last two payslips or a letter from their employer as evidence for compensation received
- Self-employed individuals have to provide tax returns for the previous two years
- Proof of residence through rent receipts or rates notices
Getting this Personal Loan can be a good idea, given the number of features it offers, but since you can find such features in other offerings, take some time to compare a few.
