First Option Credit Union Cash Secured Loan

Rates and Fees verified correct on October 26th, 2016

Get a highly competitive interest rate when you secure a First Option loan with a Fixed Term Deposit

First Option Credit Union provides a Cash Secured Loan that you can secure using a First Option Fixed Term Deposit. This loan offers a competitive interest rate and you won't be charged any application fees or ongoing account-keeping fees.

If you take out this loan you can look forward to flexibility in terms of both your repayments and also your payment methods. You can make extra repayments without attracting penalties and this loan comes with a free redraw facility.

Product NameFirst Option CU Cash Secured Loan
Interest Rate (p.a.)From 4.99% (variable)
Comparison Rate (p.a.)4.99%
Interest Rate TypeVariable
Maximum Loan Term30 years
Min Loan Amount$1,000
Application Fee$0
Monthly Service Fee$0

What should you know about the Cash Secured Loan?

This loan is ideal for people who have some capital to put in a term deposit for a given period of time, given that the term deposit works in securing this loan and you're able to get a competitive interest rate in return. You can choose between a fixed rate and variable rate loan, depending on which suits you better.

You can make extra repayments towards your loan at any time, and you can access these funds through a free redraw service. The loan terms for a the variable rate loan can extend up to 30 years.

Features that come with this loan

  • Competitive interest rate. Since you’re using a First Option Fixed Term Deposit to work as security towards this loan, you can look forward to getting a highly competitive interest rate of 4.99% p.a.
  • Low fees. This personal loan does not attract any application fees and you don’t have to pay any ongoing account keeping fees.
  • Low minimum amount. The minimum you can borrow is $1,000. This lets you borrow no more than you need.
  • Variable loan term. While First Option Cash Secured Loans come with loan terms of to 30 year(s), the fixed rate loan terms vary from one to three years.
  • Repayment methods. You can sign up for direct debits or salary deductions so you don’t have to remember to make your repayments. You can also make repayments via phone, the Internet, and mobile banking.
  • Repayment flexibility. Depending on how often you receive your pay, you can make repayments every week, fortnight or month.
  • Extra repayments. Extra repayments that you make towards your loan don’t attract any penalties, letting you reduce what you pay in interest if you are able to make them.
  • Early payouts. You can pay out a variable rate loan ahead of time without paying any penalty, but if you end up paying a fixed rate loan before schedule you will have to pay a penalty.
  • Redraws. Your Cash Secured Loan comes with a free redraw facility, but there is a limit to the minimum you can redraw.

How much the Cash Secured Loan will cost you

This Cash Secured loan provided by First Option Credit Union is low on fees, and you can find out just what you might end up paying by going through the loan offer in advance. The fee structure of this loan looks like this:

  • Administration fee: $0
  • Monthly fee: $0
  • Annual fee: $0
  • Redraw fee: $0
  • Direct debit dishonour fee: $16

What you need to do to apply

Applying for this Cash Secured Loan is easy, and you can do so online, over the phone, or by visiting any First Option branch. The following eligibility criteria will need to be met in order for you to apply:

  • You are 18 years or older
  • You are a permanent resident of Australia
  • You don’t have poor creditworthiness

As part of the application process you have to submit different kinds of information, which includes the following:

  • Personal details like your name, date of birth, marital status, and number of dependants
  • Contact details like your home address, email address, and phone number
  • Your employment status, your occupation, your employer’s name, and your employer’s contact details
  • Details of income from all sources
  • Details of expenses (to include details of all existing liabilities)

The Cash Secured Personal Loan comes with a competitive interest rate, but since you have other similar options from which to choose, take a little time to compare a few.

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This page was last modified on 27 April 2016 at 10:07.

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