Bank of Heritage Isle Personal Loan

How does the Bank of Heritage Isle Personal Loan work?

This personal loan comes with the option of either variable or fixed interest. You can also choose from a secured or unsecured option. With fixed interest, you will have the certainty of knowing what your monthly interest payments will be. The fixed rate is higher than the variable rate. While the variable rate is lower, your interest rate could fluctuate based on the market rate. It could go either up or down on a monthly basis, making it more difficult to budget for. You can use the loan funds for the purchase of a vehicle, electronics, whitegoods, household items or a holiday.

What features does the Bank of Heritage Isle Personal Loan offer?

• Secured or unsecured options. Secured and unsecured options are available. The lender may request security based on the loan amount and the member.
• Variable or fixed rate. You can choose a variable or fixed rate. The fixed rate is higher, but offers more certainty when it comes to repayments. The variable rate is lower, but may fluctuate on a monthly basis depending on the market rate.
• Terms up to 7 years. Your loan term can range from 1 to 7 years.
• Flexible repayments. You can choose from weekly, fortnightly or monthly repayments, based on what suits you.
• Additional repayments. You can make unlimited additional repayments for the variable rate loan.
• No early payout fee for variable rate. You can repay your loan early without incurring a penalty.
• Redraw available. You can redraw your additional repayments. A minimum redraw amount of $100 applies for the fixed option.
• No ongoing account-keeping fees. You won't have to pay monthly or annual account-keeping fees.

How much does the Bank of Heritage Isle Personal Loan cost?

The costs associated with this loan include:

• Loan principal
• Interest rate of 9.99% p.a. (variable) or 12.99% p.a. (fixed)
• Loan establishment fee of $98

This loan does not charge an annual or monthly account-keeping fee. An early repayment fee may apply for fixed rate loans. The fee will apply if you repay more than $5,000 above contractual repayments or the whole of the unpaid balance. The comparison rate, which includes interest charges and fees, is 10.13% p.a. (variable) or 13.14% p.a. (fixed).

What are the pros and cons of the Bank of Heritage Isle Personal Loan?

Pros

• Flexible options. You can choose between fixed or variable and secured or unsecured.
• No account-keeping fees. This keeps down the cost of your loan.

Cons

• Fixed rate is much higher than the variable rate. For the convenience of a fixed rate, you will have to pay a higher rate than if you opt for a variable rate.

Am I eligible for the loan?

To be eligible for the loan, you need to:

• Be at least 18 years old
• Be a citizen or permanent resident of Australia
• Have a regular income
• Be able to make your repayments
• Have access to an email account and mobile phone

How do I apply for the loan?

You can apply for the loan online, through the Bank of Heritage Isle website. It should take around 10 to 15 minutes. You’ll need a driver’s licence or other ID document, online banking accounts access or bank statements and employment documents.