Whether you’re after a home loan to help you buy the house of your dreams, a personal loan to consolidate debt, business loan to help your online business expand into new markets or a car loan to help cover the cost of a brand new car, you can now compare and apply for a loan online - wherever you are and whenever it suits you. Mozo compares online loans from Australia’s traditional banks and a wide range of digital lenders to help you find a great loan deal.
*WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.
**The Comparison Rate combines the lender's interest rate, fees and charges into a single rate to show the true cost of a personal loan. The comparison rates displayed are calculated based on a loan of $30,000 for a term of 5 years or a loan of $10,000 for a term of 3 years as indicated, based on monthly principal and interest repayments, on a secured basis for secured loans and an unsecured basis for unsecured loans. WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may inﬂuence the cost of the loan.
***The Comparison Rate combines the lender's interest rate, fees and charges into a single rate to show the true cost of a personal loan. The comparison rates displayed are calculated based on a loan of $30,000 for a term of 5 years or a loan of $10,000 for a term of 3 years as indicated, based on monthly principal and interest repayments, on a secured basis for secured loans and an unsecured basis for unsecured loans. WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may inﬂuence the cost of the loan.
In a world where everything from listening to music to watching movies and shopping for groceries can be done online, it only makes sense that you’d now be able to take out a loan online too.
Well, say goodbye to long queues and taking time out of your day to squeeze in a trip to the bank just to make an enquiry. Now you can compare and apply for a loan online all from the comfort of your home, without ever having to step foot into a branch.
Why choose an online loan?
Not only are more and more traditional banks starting to offer online loans, there are also many lenders out there that operate solely online. What you’ll find is that without having the overhead costs of a physical branch, many of these new online lenders can offer hot rates and super competitive deals. So not only are online loans super convenient, but they could potentially score you a bargain too.
How do online loans work?
Online loans work in much the same way as a regular loan. Instead of filling out paperwork at a bank branch, you’ll complete your loan application online, submit your personal information online and once your loan application is assessed you’ll be notified via email or phone if your application has been successful. If you are getting a personal loan the funds are usually deposited direct in your account within a couple of days of loan approval.
As with any loan, when you apply for an online loan, you’ll likely be required to provide a range of personal information when filling out your application.
Checklist of personal information you might need to provide:
Some personal information you might need to provide when applying for an online loan could include:
Proof of age: You must be at least 18 years or older to take out a loan in your own name
Contact Details: Email, contact number and residential address
Driver’s license: Or any other approved form of identification
Proof of income: To prove that you’ll be able to repay the loan
Assets: Information about any assets you own
Current debts: Information about any other debt you have, such as a home loan, personal loan, car loan or credit card debt
Make sure you have a secure connection:
Whether you’re applying for an online loan or doing some online shopping, you should always be extra cautious sharing your personal information. One way you can do this is by checking if the company you are communicating with has a secure site.
Take a look at the website address and see if the weblink begins with ‘https://’ (the ‘s’ stands for ‘secure’). Another way is to check if there’s a padlock symbol displayed at the top of your browser (usually located next to the weblink).
If you don’t see either of these then you might want to exit the site and go for a different online lender. It’s better to be safe than sorry.
Can I get an instant online loan?
If you need cash in a flash then you might consider taking out an instant online loan. An instant loan or instant personal loan is an immediate cash transfer, online loan approval or same-day funding. You might also know them as payday loans.
These loan types are designed to give you small amounts of money (usually between $2,000 and $3,000) fast, usually to help pay for unexpected bills and expenses or even to help you make ends meet in between paychecks. Mozo does not endorse these types of loans as they are potentially very risky due to their high interest rates. Before taking out a payday loan we suggest that you review the information on Payday loans at the Australian Government MoneySmart website.
Instant money alternative:
An alternative option to help you get access to extra funds quickly is to take out an online personal loan. One of the many perks of an online loan is that you can apply, get approved and have the money in your bank account almost instantly. Some lenders even offer same-day funding.
What is the best online loan?
Here are a few things you can do to find the right online loan for you and help increase your chances of being approved:
1. Shop around
To find the best online loan for you, it’s important to shop around and not just apply for the first loan you find. So, first and foremost you should head to Mozo’s online loan comparison table to compare your options. Don’t just compare loans on the headline interest rate. The comparison rate shown combines the interest rate along with any fees into a single rate so that you can compare the real cost of loans side by side.
2. Find a loan you’ll qualify for
If you’re applying for a personal loan, you can use Mozo’s free Rate Matcher tool to see which loans you qualify for and the interest rates you’ll likely get.
3. Read the fine print
Once you’ve narrowed down your options and read the fine print and eligibility criteria, it’s time to apply.
Just because you are applying for a loan online, you still need to meet the bank’s lending criteria. The amount of money you will be able to borrow will depend on a range of factors such as your income, assets and liabilities and it will also depend on the type of loan you are seeking and which lender you go with. To get an estimate for a home loan, try our home loan borrowing calculator.
Once your application is approved some online lenders offer same day funding for personal loans and business loans. With home loans the time it takes to get your loan funded will depend on a number of factors such as your settlement date, if buying a new home or if you are refinancing , the time it takes your old lender to transfer to the new lender.
The benefit of a fixed rate loan is that for the whole duration of the loan, you will know exactly how much your repayments will be month to month. Many people find that fixed rate loans help them to budget more effectively. There are some restrictions to fixed rate loans to be aware of such as whether you can pay out the loan early without penalty such as break cost fees.