Get a variable or fixed rate Personal Loan from First Option Credit Union, and don’t pay any penalties for extra payments.
First Option Credit Union provides both variable and fixed rate Personal Loans that don’t attract any ongoing account-keeping fees. The loan term varies in accordance to the amount you wish to borrow and the maximum loan term can extend up to seven years. You can borrow as little as $1,000 through this Personal Loan and it comes with repayment flexibility.
You can make extra payments towards your loan and pay the loan off early without attracting penalties. This loan also comes with a redraw facility.
|Product Name||First Option CU Personal Loan|
|Interest Rate (p.a.)||From 13.99% (variable)|
|Comparison Rate (p.a.)||14.25%|
|Interest Rate Type||Variable|
|Maximum Loan Term||7 years|
|Min Loan Amount||$1,000|
|Monthly Service Fee||$0|
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 Credit Union 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 one to seven 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 $1,000, 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 Credit Union 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: (one time)
- Redraw fee: $10 (for each instance)
- Direct debit dishonour fee: $16 (for each instance)
How to apply for the First Option Credit Union Personal Loan
You can apply online, over the phone, or by visiting any First Option Credit Union 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.