Transport Mutual Credit Union Unsecured Personal Loan

How does the TMCU unsecured personal loan work?

The TMCU personal loan is unsecured and does not require an asset as security. As a result, the borrowing amounts are smaller and interest rates higher. The loan comes with a variable interest rate, which means your interest payments fluctuate monthly based on the market rate.

You can use the loan funds to purchase a motor vehicle, new furniture or a holiday, as well as for home renovations, investing in shares or debt consolidation.

What features does the TMCU unsecured personal loan offer?

• Unsecured loan. No asset is required as collateral for the loan. Given that this is riskier for the lender, the loan has higher interest rates and smaller borrowing amounts.
• Variable rate. With a variable rate loan, your interest payments may vary monthly based on the market rate. This makes it harder to predict and budget for your repayments.
• Flexible loan term. Your loan term can be between 1 and 7 years.
• Flexible repayments. You can choose to make weekly, fortnightly or monthly fixed repayments.
• Borrow from $1,000 upwards. You can borrow up to $30,000.
• Extra repayments. You can make additional repayments without penalty and pay off your loan sooner.
• Redraw facility. You can access your extra repayments through the redraw facility for free online.
• No early repayment penalty. You can repay the loan early without incurring a penalty.
• No ongoing fees. The loan has no monthly or annual account keeping fees.

How much does the TMCU unsecured personal loan cost?

The costs associated with this loan include:

• Loan principal.
• Variable interest rate of 11.14% p.a.
• $195 establishment fee.

No ongoing annual or monthly account keeping fees are charged. The comparison rate includes interest and fees.

What are the pros and cons of the TMCU unsecured personal loan?

Pros

• No monthly fees. The loan has no monthly or annual account keeping fees. This helps keep down the cost of the loan.
• Extra repayments and redraw. You can make extra repayments and pay off your loan early without facing a penalty, and redraw your extra repayments.

Cons

• Difficult to budget. With a variable interest loan, it is difficult to budget for your repayments as they may fluctuate on a monthly basis. It may be higher or lower for some months than others.

Am I eligible for this loan?

Australian citizens or permanent residents who are over 18 years old are eligible for this loan.

How do I apply for this loan?

You can apply for the loan online through TMCU’s website. You will need to provide 3 recent payslips or a letter from your employer with salary details and start date. You will also provide proof and source of other income, recent statements on other loans you hold, 3 months worth of bank statements among others. Keep all your documents handy to speed up the process.