Top Reasons People Take Out Financial Loans

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Although personal loans are still regarded as something of a taboo subject when discussing finance with friends, they are more common than you might think. There are numerous reasons why people want to take out personal loans, and here at NOW FINANCE we offer a wide variety of personal loan options to fit the needs of our customers and to help them get what they want, NOW.

To explore the reasons why people take out financial loans, here’s a look at the most popular loan types here at NOW FINANCE.

1.      Car Purchase

Personal loans towards the cost of buying a new car are our most popular loans. They account for 24% of all loans settled here at NOW FINANCE, with an average loan amount of $14,000.

These loans include people buying family cars in addition to single individuals who might choose to buy a performance car.

As well as providing car purchase loans, we also provide specific loans for car repairs and upgrades. Both are also popular loan types with our customers, with car repair loans and auto upgrade loans representing a combined 3% of all settled loans.

View our car finance loans or view all our vehicle loans here.

2.      Debt Consolidation

There are numerous reasons why people choose to take out a debt consolidation loan. Most commonly, people look to consolidate their existing debts as a means of trying to reduce their level of debt and/or so they can get debt free quicker. Individuals with credit card debts often find consolidation the most useful, as they can clear their balance and get a date when they are going to be debt free rather than continuing to make minimum payments that just about service the monthly interest.

Debt consolidation loans account for 21% of all loans settled by NOW FINANCE, with an average value of $21,000.

3.      Medical Expenses

Whether you are looking to undergo a cosmetic surgery procedure or have emergency medical bills to pay, NOW FINANCE offers personal loans to help you cover your costs and avoid the stress that these events can bring.

Our medical expenses loans can be used for everything from breast augmentation and facelifts to laser eye surgery, hair restoration, and dental treatment.

Overall, medical and dental finance combined is responsible for 16.5% of all loans settled here at NOW FINANCE, with an average loan amount of $10,500.

View our medical and dental finance options here.

4.      Home Improvement Loans

Improving our home is a great way to both increase our quality of life as well as the value of our property. With a NOW FINANCE home improvement loan, our customers have the option of undertaking home renovations such as redecorating or refitting a kitchen, pursuing outdoor projects such as a swimming pool installation or the building of new decking, or simply buying all new furniture for their homes.

Home renovation and furniture loans combined account for 15.5% of all loans settled by NOW FINANCE, with the average loan value standing at $27,000.

What home improvements would make a real difference to your life?

View our home improvement loans here.

5.      Travel Loans

Travel is often considered one of the best ways for individuals to broaden their minds. Whether you’re a singleton who enjoys having a few weeks to yourself away from home, or have been waiting years to take a family vacation, a travel loan can help you get that dream trip you’ve been thinking of, whether you wish to visit somewhere in Australia or take a real once in a lifetime overseas vacation.

Travel loans account for 7% of all the loans we settle with an average value of $13,000.

View our travel loan options here.

6.      Wedding Finance

Our wedding day is usually the most important day of our lives – until we have children – and naturally it’s a time when we want to ensure that everything is perfect. While family members are usually more than willing to help cover wedding costs, sometimes to truly get that dream day you may require some extra finance, which is where a NOW FINANCE wedding loan could come in.

Wedding finance accounts for 2% of all loans settled at NOW FINANCE, with an average wedding finance loan amount of $17,000.

View our wedding loans here.

How Could a Personal Loan Help You?

Do you require a personal loan for any of these reasons? Is there another aspect of your life that a personal loan might help with?

You can view all of our personal loan options here to see how NOW FINANCE could help you. Once you have decided that a NOW FINANCE personal loan can be of use to you, you can get your interest rate before applying and then progress onto your application if you’re happy with the rate and payments that will apply to your loan.

If you have further questions you can speak to one of our personal loan experts on 1300 275 669.


Disclaimer:  This article contains general comments and recommendations only. This article has been prepared without taking account of your objectives, financial situation or needs.  Before taking any action you should consider the appropriateness of the comments made in the article, having regard to your objectives, financial situation and needs. If this article relates to the acquisition, or possible acquisition, of a particular credit product you should obtain and consider the relevant disclosure documents before applying for the product.

Things you should know

Applications for finance are subject to NOW Finance’s lending and approval criteria. Terms and conditions may apply.  No establishment, account keeping or early repayment fees will apply. Charges such as default or enforcement costs may apply if you do not comply with the terms of your loan. Settlement times may vary depending on individual circumstances. Loan repayment terms range between 18 months to 7 years.  For unsecured loans you can borrow between $5,000 to $50,000 with interest rates ranging from 5.95% p.a. (5.95% p.a. comparison rate*) to 17.95% p.a. (17.95% p.a. comparison rate*).  For secured loans you can borrow between $15,000 to $100,000 with interest rates ranging from 4.45%p.a. (4.45% comparison rate*) to 15.45% p.a. (15.45% p.a. comparison rate*).

*About Comparison Rates

The Comparison Rate is designed to help you understand the overall cost of the personal loan. It combines the amount of the loan, loan term, repayment frequency, interest rate, fees and charges into a single rate to show the total true cost of the loan. The comparison rates for the NOW Finance loans are based on a loan of $30,000 over 5 years. WARNING: The comparison rates given are true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Due to the fact NOW Finance does not charge any establishment, account keeping or early repayment fees, the true cost of the loan or Comparison Rate will always equal the interest rate quoted.


our confirmed guaranteed personalised rate may change if you provide NOW Finance with incorrect personal information or security details.  In some circumstances, NOW Finance may require further information from you in order to provide you with your guaranteed personalised rate.

NOW FINANCE is a trademark of Now Finance Group Pty Ltd ACN 158 703 612 Australian Credit Licence number 425142, as agent for NF Finco 2 Pty Ltd ACN 164 213 030