What you need to know about the new Coles personal loan
As Aussies across the nation avoid strawberries at their next grocery shop, many could be adding a personal loan to their shopping basket instead.
Coles Financial Services has announced they will be adding personal loans to their product lineup and to give Aussies a loan that best suits their circumstance, Coles will offer personalised rates for top borrowers.
With the Coles Personal Loan, Aussies will be able to borrow between $5,000 - $50,00 to repay between 3 - 5 years.
In terms of fees, the Coles Personal Loan features a $10 monthly and late payment fee, plus a $199 establishment fee.
Rate discounts for flybuys members and other shopping perks are also available.
Flybuys members who apply for a Coles Personal Loan will receive a variable rate starting from 11.99% (12.94% comparison rate^^), while non flybuys members can snag rates from 12.99% (13.93% comparison rate%^^).
Up to 12,000 extra flybuys points per loan per year are also up for grabs, as shoppers will be able to earn one extra point per dollar spent - totalling up to $60 worth of value every year.
And each time a Coles credit card, insurance or personal loan customer redeems 2,000 points, they’ll get $10 off their grocery shop at the checkout.
How the Coles personal loan stacks up
To give you an idea of what your repayments might look like with the Coles Personal Loan, we decided to take our personal loan repayment calculator for a spin.
Say you were a non-flybuys member taking out a Coles Personal Loan at the starting variable rate of 12.99% (13.93% comparison rate%^^). If you borrowed $10,000 to repay over three years, you would have a monthly repayment of $337 with the total interest paid sitting at $2,128.
And if you’re a flybuys member borrowing the same amount with the discounted 11.99% variable rate (12.94% comparison rate^^), you’d pay $332 in monthly repayments and a total of $1,955 in interest.
When compared to the average variable rate in our database of 12.23%, on the same terms, your monthly repayments would drop to $333 and the total interest paid at $1,997.
However, while this new offer is enough to entice dedicated flybuys shoppers, Mozo Director, Kirsty Lamont has reminded Aussies to think long term when it comes to applying for a personal loan.
“Being able to get your hands on 12,000 extra flybuys points and $10 off your grocery bill can entice any savvy flybuys shopper,” she said.
“But it’s still important to consider the overall value of the loan, factoring in the fees, rate and other loan features, like a redraw or extra repayment facility.”
So if you’d like to compare your options before signing up, you can check out our personal loan comparison tool.
^ 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 for the amounts and terms below, 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. ^ Based on $10,000 over 3 years ^^ Based on $30,000 over 5 years