Alex Bank offers up a competitive personal loan
Say hey to Alex.Bank. An Aussie digital lender that's solidified itself in the personal loan game and is now looking to expand its banking horizons.
Previously 'Alex', in July 2021 Alex.Bank was granted a restricted banking licence by the Australian Prudential Regulation Authority (APRA). Now recognised as a restricted deposit-taking institution by APRA, Alex.Bank has the ability to operate as a 'limited banking business' for the next two years.
Unlike other aspiring neobanks who kicked off with transaction and savings accounts, Alex switched things up and introduced its inaugural product in July last year: the Alex.Bank Personal Loan.
Currently on the Mozo database, the average unsecured fixed and variable personal loan rate sits at 9.47%. However, the Alex.Bank Personal Loan comes with fixed rates starting as low as 4.99% p.a. (4.99% p.a. comparison rate*).
“We're operating in that prime lending space so we really are here for borrowers who really want to be responsible with money,” founder and chief financial officer of Alex.Bank, Craig Fenwick said.
“We offer loans from $2,100 all the way up to $30,000 and potentially larger amounts in time as well, at terms that are based on the customer's requirements. So we try to personalise loans by offering simpler and fairer credit.”
Our in-house experts loved this product so much they crowned it Best New Loan Product as part of the 2021 Mozo Experts Choice Award for Personal Loans.
If you want to learn more about this award-winning personal loan product, take a peek below!
Alex Personal Loan
Alex Personal Loan
- Fixed rates from 4.99% p.a. (4.99% p.a. comparison rate*)
- Establishment fee waived for applications before 8 December 2021
- Free extra repayments
After a personal loan from an Aussie digital lender? Meet the Alex.Bank Personal Loan. This product comes with competitive fixed rates from 4.99% p.a. (4.99% p.a. comparison rate*), flexible repayment options and no ongoing fees. Borrowers can choose from a weekly, fortnightly or monthly repayment schedule and also make free extra repayments. Plus, if you pay your loan off early, there’s no early settlement fee! Plus, if you apply by 8 December 2021, Alex.Bank will waive the $295 upfront establishment fee. Also remember, this is an unsecured loan so you won’t have to put up assets as collateral.
Why choose Alex?
The founders at Alex.Bank say that the aspiring neobank is built on delivering three key things: simplicity, fairness and lack of friction.
“Simplicity's a core element of lending. So we built a personal lending process for customers to apply that involves them having the confidence to give us their data and we can use smart technology to get them an answer very quickly, and then get them their funds very quickly,” Fenwick said.
“One of the things we hold really dear is the notion of fairness and making sure that we give a price which people find agreeable to them based on their risk.
“But it’s also making sure that we aren't introducing friction into the process by keeping our upfront fees as low as we can and not having any ongoing fees, other than a relatively small fee for people should they miss a payment.”
According to Alex.Bank, the target application time for customers is as little as a swift three minutes. (However, for some applicants the process may end up being longer).
And while the Alex.Bank Personal Loan is the only product on offer at the moment, this aspiring neobank doesn’t want to stop there. Fenwick says that once the company’s full banking licence is approved by APRA, they’ll look to expand into more lending and deposit products, such as a savings account.
Want to see how the Alex.Bank Personal Loan stacks up against the rest? Jump over to our personal loan comparison table to check out more lenders!
* WARNING: 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. 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.
^See information about the Mozo Experts Choice Personal Loan Awards
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