Unity Bank Fair Rate Personal Loan

How does the Unity Bank Fair Rate Personal Loan work?

The Fair Rate Personal Loan offers personalised interest rates based on your creditworthinesss. The interest rate is divided into 5 tiers. The better your credit score, the better interest rate tier you will be in. The Diamond tier is reserved for excellent credit, with an interest rate starting from 7.99% p.a. The highest interest is charged for the Opal tier, at 16.99% p.a. Borrowers can use this loan for holidays, cars, debt consolidation, renovations, weddings, family expenses or medical bills.

What features does the Unity Bank Fair Rate Personal Loan offer?

• Unsecured loan. This personal loan is unsecured, meaning it does not require an asset as collateral for the loan.
• Variable rate. Your interest rate will fluctuate based on the market rate. If the market rates drops, so will your cash rate. If the market rate rises, so will your cash rate.
• Personalised interest rates. Your interest rate will be determined by your credit score. If you have excellent borrowing history, you can expect a lower interest rate. If your credit score is patchy, you can expect to pay more for the loan.
• Large borrowing range. You can borrow amounts ranging from $1,000 up to $90,000. How much you can borrow will depend on your income, existing debts and other recurring expenses.
• Unlimited extra repayments. You can make unlimited extra repayments towards this loan.
• No early termination fee. If you can repay the loan early, there'll be no penalty fees.
• Redraw facility. You can withdraw from your extra repayments using the redraw facility. The minimum redraw amount is $100.

How much does the Fair Rate Personal Loan cost?

On top of the loan principal, you can expect to pay:

• Loan principal
• Establishment fee of $150.
• Variable interest based on your credit score and tier.

This loan does not charge monthly or annual account-keeping fees.

What are the pros and cons of the Fair Rate Personal Loan?

Pros.

• No risk to assets. Because this loan is unsecured you don't need to provide loan security. This reduces the risk of your asset being repossessed if you default.
• Borrow even if your credit score is not excellent. You may be able to borrow even if your credit score falls short of perfect.
• Unlimited extra repayments. You can make unlimited extra repayments and pay off your loan early without penalty.
• No account-keeping fees. You won't be charged either monthly or annual fees to maintain your account.

Cons.

• Pay higher interest if you don't have an excellent credit score. While you may still be able to apply with imperfect credit, you'll have to pay higher interest. This means your loan will cost you more.
• Can be harder to budget for. Variable rate loans can be more difficult to budget for. This is because your interest rate may fluctuate based on the market rate.

Am I eligible for the Fair Rate Personal Loan?

To be eligible for this loan, you must meet the following criteria:

• Be over the age of 18.
• Be an Australian/New Zealand citizen or Australian permanent resident living in Australia.
• Be eligible to work in Australia.
• Be employed or receive regular income.

You should also have a good credit rating and not be going through the process of bankruptcy.

How do I apply?

You can apply for the loan online or by contacting the lender via telephone. Keep your documents in hand to speed up the process.