PLEASE NOTE: NOW FINANCE HAS EXPANDED ITS NO FEE OFFERING ACROSS TO LOANS AMOUNTS UP TO $50k. AT THE TIME OF PUBLISHING THIS BLOG OUR NO FEE AMOUNTS WERE ONLY FOR A MAXIMUM OF $15k LOAN AMOUNT. PLEASE REFER TO OUR LATEST ARTICLE HERE
At NOW FINANCE, we’re always looking for ways to innovate and improve the experience you have when borrowing from us.
All new loans between $5,000 and $15,000 NOW have no fees!
As of September 21st 2020, no fees apply on unsecured loans between $5,000 and $15,000.
What does this mean for you?
It means you won’t ever have to pay an establishment fee, monthly account keeping fees or early repayment fees but other charges might apply if you do not comply with the terms of your loan.
Introducing our new minimum interest rate
We’ve also recently introduced a new minimum interest rate of 6.95% p.a. (comparison 8.56% p.a.*) down from the previous 7.45% p.a.
That means if you’re eligible for our baseline rate, you’ll pay 0.5% p.a. less in interest over the lifetime of your loan, as well as not paying any fees!
The table below highlights how much you could save from these changes, based on a representative example of borrowing $10,000 over 3 years.
|Amount Borrowed||Interest Rate||Comparison Rate||Weekly Repayment||Number of Weekly Repayments||Total Repayable||Fees Applicable||Savings|
|$10,000||7.45% p.a.||12.98% p.a.||$77.42||156||$12,077.52||$868||$0|
|6.95% p.a.||12.48% p.a.||$77.00||$11,993.28||$868||$84.24|
6.95% pa (no fee loan)
What benefits do these loans offer to customers?
At NOW FINANCE, our customers are at the heart of everything we do. By offering no fees on personal loans between $5,000 and $15,000, we enable you to enjoy a great range of benefits.
Benefit 1: One of the lowest comparison rates around for unsecured loans
Customers who are eligible for our lowest interest rate of 6.95% p.a. will have access to a personal loan with one of the lowest comparison rates in the market.
Remember, when you get your rate on the NOW FINANCE site, the rate you see is the rate you’re guaranteed to get if we approve your loan application. Many lenders allow you to get an estimated rate, but this may change once you submit your application. Once you’ve gotten your NOW FINANCE interest rate, you can apply with confidence.
Benefit 2: Your potential borrowing power increases
When you take out a personal loan where fees apply, these may take up a considerable chunk of your borrowing capacity.
As the table above illustrates, the fees on a loan of $10,000 over 3 years amount to over $800^. As these fees don’t apply, you might find you can afford to borrow more. Essentially, you could additionally borrow the amount you’re going to save in fees!
Having the capacity to borrow $11,000 instead of $10,000 might not feel like a huge jump. However, it could make a significant difference in your life, especially if you’re looking for a loan to help fund your wedding, consolidate debt or purchase a new car.
Benefit 3: An ideal personal loan for refinancing existing borrowing
If you have an existing personal loan and have less than $15,000 in remaining repayments, you could refinance this to a NOW FINANCE No Fee Personal Loan. Refinancing allows you to change your rate, repayments and loan term to better suit your current circumstances.
Benefit 4: Consolidate smaller, yet potentially expensive, debts
If you have a handful of credit cards with low credit limits, even if they’re maxed out, they might not seem that big a deal.
Yet, if you’re only making the minimum repayments each month, you might already be on the revolving debt hamster wheel. Chances are, sooner or later you’ll be looking for a way off.
Even if you don’t get our lowest interest rate, a small debt consolidation loan could help you pay off that debt. Long-term, this could put you on the path to a brighter financial outlook.
The table below highlights the potential advantages of consolidating your debts into a NOW FINANCE No Fee Personal Loan.
|Borrowing Facility||Amount of Borrowing||Comparison Rate||Repayment Schedule||Time to Clear Debt (Minimum Repayment)||Total Repayable|
|NOW FINANCE No Fee Personal Loan||$10,000||6.95% p.a.||$71.11 per week||3 yrs||$11,093.16^|
|Zip Money Loan||19.90%+ p.a.||Minimum monthly repayment of 3% or $80, whichever is greater, plus $6 per month outstanding balance fee||11 yrs, 2 mths||$19,231^|
|Credit Cards (Combined)||17.00%~p.a.||Minimum monthly repayment of 3% or $20, whichever is greater||16 yrs, 9 mths||$17,352^|
+Standard Zip interest rate of 19.90% p.a. after 3-month interest-free period. Zip may offer other promotional rates at its discretion (Finder.com.au 2020)
~Average credit card interest rate is 17.00% (Savings.com.au 2019)
As you can see, while consolidating these debts into a personal loan may mean you’re paying more in the short term, in the long-run you have the potential to save thousands of dollars and clear your debts far quicker.
Benefit 5: An excellent alternative to things like BNPL
Buy Now, Pay Later (BNPL) is one of the fastest-growing finance sectors in Australia. However, BNPL can quickly become expensive. If you want to buy something more expensive but can’t clear your balance before the interest-free period ends and fees kick in, your debt can snowball.
A small personal loan with no fees could be a great alternative. The interest rate means your total repayment will likely be smaller than if you were to use BNPL. Choosing a BNPL option might only be worthwhile if you are sure you can clear your balance before the end of the interest-free period.
Likewise, a smaller loan with no fees might also work out cheaper than putting a purchase on a credit card. If you’re concerned about your ability to repay more than the minimum repayment each month, a loan may allow you to budget more easily.
As well as enjoying these specific benefits, you will also continue to enjoy access to your own Australian-based personal loan advisor alongside all the other benefits of choosing NOW FINANCE.
How do I apply for a NOW FINANCE No Fee Personal Loan?
Our loan application process is still as simple and as hassle-free as ever.
You don’t have to do anything differently to apply for a NOW FINANCE No Fee Personal Loan. All NOW FINANCE personal loans between $5,000 and $15,000 will automatically have no fees applied.
All you need to do is get your rate, and decide whether you’d like to apply when you know what your interest rate will be. Remember that even if you’re not eligible for the 6.95% p.a. interest rate, you still won’t pay any fees, so your comparison rate will still be lower than it ordinarily would. You can learn more about interest rates and comparison rates here.
If you have any questions about applying for a personal loan, our customer service team is here to help you. You can give us a call 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
^ Illustrated fees, rates and repayments accurate at time of publishing (21 Sept 2020) and are subject to change.
Zip Money interest-free payments, Finder.com.au website, 18 February 2020, Hive Empire Pty Ltd. Available from https://www.finder.com.au/zipmoney [14 September 2020]
Credit Cards 101, Savings.com.au website, n.d, Savings.com.au Pty Ltd. Available from https://www.savings.com.au/credit-cards/credit-cards-101/ [14 September 2020]