How to Get a Bank Loan

Getting a bank loan can seem like a daunting task these days with so many banks are closing and people with bad credit rating suffering financial distress. Banks, in particular, tend to demand healthier financials, strong business and personal credit scores, and a personal guarantee. And applying usually takes several months to a year: the entire process could last up to about three months, even. But if you’re able to qualify for an unsecured bank loan, it could be an affordable means to keep cash flowing or obtain funds for your business.

As mentioned earlier, there are many bank loan companies today that offer unsecured application form, including brick and mortar and online lenders. You will find many local and regional bank loan offices as well as online lenders willing to approve your application. You may need to provide additional information, such as your income and employment, to ensure that your loan amount matches income requirements. If you do not own property or other assets to use as collateral, you may have to use your home as collateral. Many traditional banks and lending institutions only make loans to borrowers who are homeowners or who have some kind of collateral to use.

Interest Rates

The bank loan interest rates charged on an unsecured loan will depend on the company and your specific situation. Your credit rating and income level will affect what the lender will offer you the best rates. Typically, unsecured loans are made for shorter durations of say thirty years or less; interest rates will naturally be higher. Because of this, some might suggest that people with bad credit might have better luck securing shorter financing terms through a bank loan than through a traditional bank loan.

However, bank loan interest rates and terms will not necessarily be the lowest. You may have to shop around a little to find a lender who will approve you for financing terms that meet both your income and loan requirements. Also, even if your bank loan application is approved, you will not generally qualify for the lowest interest rates available. You may still have to pay closing costs or service charges to repay the bank loan.

Your lender will likely require you to make monthly payments during the term of your bank loan. Depending on your bank loan interest rate and terms, these monthly payments will be either above or below the amount you would pay with a traditional mortgage payment. The bank loan repayment terms should be clearly defined for you to accurately calculate how much your monthly payments will be.

As with any loan, there are pros and cons associated with bank loans. Some of the pros associated with bank loans are the convenience and speed at which the money can be accessed. Also, these types of financing often provide smaller payment instalments over a longer time than traditional mortgages or personal loans. Other pros are that this type of financing is not considered a high-risk investment because the funds are provided by a bank that is FDIC insured. And, bank loans offer a flexible repayment option and variable interest rates, which can help you plan for future financial security.

There are also some cons associated with bank loan applications. While bank loans often have a shorter repayment term, they usually carry higher interest rates due to the additional risk of lending money to individuals with less than perfect credit. Additionally, many bank loan applicants are required to submit collateral to obtain approval for a bank loan. If the applicant fails to make payments on the loan, the bank can sell the secured property to recoup some of its losses. Some lending institutions may even require applicants to go through a credit check process to get approval for a bank loan.

Homeowners may be able to apply for these loans through their local banks, credit unions, or mortgage brokers. Also, they can be applied online through non-traditional lenders such as internet banks, community banks, bank-sponsored organizations, and credit unions. Non-traditional lenders tend to have slightly lower costs and generally have better loan terms than traditional lenders. For most borrowers, non-traditional lenders offer the opportunity to find a bank loan that best fits their needs. The key is finding the lender that is right for your needs.

Car Insurance Companies ID Cards – Reasons to Have One

Comparison shopping is essential if you want to save money on car insurance premiums. Here is why: Insurance companies typically look at very similar criteria, but yet they have their special secret sauce when it pertains to setting premiums. So no two companies will charge wildly different prices for the same driver. It just doesn’t work that way in the real world.

Comparison

However, this is not to say that one should never take the word of the insurance company’s quoting process. If you have all the relevant and useful information you can compile a car insurance estimate on your own. The key piece of advice here is to comparison shop not just online but also offline. Offline quotes tend to be more accurate as they are reflective of the policies offered by various insurers.

So what you should compare minimum coverage rates, deductibles, frisks involved in accidents, the various levels of your choice of deductible, and the various ways you can save money. 

Reduce Costs

There are many ways you can reduce costs with car insurance. Here are some of the best ways:

First, you should always have the bare minimum liability insurance requirements. The minimum is often the only thing you should have since it is not nearly enough to pay for damages or injuries caused by a car accident. Bodily injury coverage can help pay the medical expenses of those who are injured in an accident. However, bodily injury coverage is not enough to cover repair costs for your car.

Also, you should consider increasing your deductible to lower your car insurance premium. Of course, you would have to increase your deductible significantly above the minimum coverage. This is because the cost of repairs is deducted from the amount that you are liable for when you cause an accident. You would have to incur an additional deductible above and beyond the minimum coverage to make up for this expense. You can raise the deductible at any time by discussing it with your car insurance agent.

Shop Around

It is a good idea to shop around. Get car insurance quotes from several different companies by getting online quotes. By shopping around, you can find the company with the cheapest rate. However, shopping around is not always easy to do. To find the cheapest rate, you may need to change car insurance companies.

When searching for vehicle insurance online, you might also want to check with your employers and ask whether or not they offer discounts for car insurance coverage. Some employers offer discounts for car insurance when employees have a certain number of car insurance policies. Additionally, car insurance discounts may be offered for good drivers who have safety habits. If you have never had an accident or ticket, you will probably be able to qualify for a good driver discount. Good drivers often get a lower rate because they are safer drivers and statistically, these people are more likely to drive safely than those who have had accidents or tickets.

Raising your deductible can also help to reduce your car insurance rates. 

Deductible 

Your deductible is the amount that you would have to pay in the event of a car accident before your insurance company would pay the rest of the cost. By raising your deductible, you can lower the cost of your coverage.

Another way to lower car insurance costs is to choose the right coverage for your situation. If you have a perfect driving record, you may not need to consider collision coverage. However, if you have an accident or ticket, you should consider liability coverage. With liability coverage, the insurance company takes the hit for any damages to your car. You should check with the average car insurance rates for your area to see how much the liability coverage costs. Consider adding more coverage for added protection.

Records 

You should also keep records of any car accidents or tickets that occur, as these can be valuable in the event of a lawsuit against you. Many car insurance companies require you to carry car insurance id cards with you at all times, so you should keep your card in a safe place, such as in your glove compartment. The car insurance company will need to access your car insurance id cards in an emergency, and it’s always best to be prepared.

A good idea is to compare quotes from a variety of car insurance companies before making your final decision. This will allow you to find the most affordable price, depending on which type of coverage you choose. Make sure that your deductible is high enough that you won’t end up paying any premiums. Ask the insurance company for a complete list of items that will result in high costs, and do your homework before purchasing. Car accidents are usually very expensive, and you want to make sure that you won’t be responsible for any of them. Check out your options today, and get the coverage that you need.

Car Insurance

Medibank International has a wide range of car insurance products to protect you, your family, and your new purchase.

Underwritten by some of the worlds biggest companies, you can feel confident that Medibank International has the strength, size & support, together with a refreshingly enthusiastic level of customer service for those times of need.

We have put together some information about car insurance, including Green Slips, GAP Cover, loan protection annd extended warranty insurance, for your perusal below. Get a car insurance quote online.

What does Medibank International have to offer?
Competitive insurance, finance, hire purchase and leasing for cars, trucks, vans, boats, office equipment, machinery, tractors, equipment, caravans, motorcycles, business furniture & fittings, and more.

Secured personal loan? 
Minimum loan is $5,000.00. Motor vehicles preferably no more than 8 years old. (Classic, import, prestige vehicles, and older trucks will be considered). The finance will be secured on your purchase at a fixed interest rate that will not go up over a 3 to 5 year term. Medibank International also provides a wide range of insurance products for motor vehicles, trucks and boats, and a unique 2nd chance finance service for people with bad credit or just having difficulty getting a loan.

Unsecured personal loan? 
Minimum loan is $3,000.00. Suitable for holiday loans, debt consolidation, furniture, and for all general purpose use, even old cars & boats unsuitable for the secured finance mentioned above with terms up to 7 years offered. The interest rates offered are either fixed at a competitive rate or a variable interest rate allowing you to take advantage of possible interest rate drops.

Note: This unsecured product is not available in all areas

Personal or business finance? 
Business finance (hire purchase, chattel mortgage or lease) is available to both company & individuals, providing the goods are to be used predominantly for business use, ie more than 50% business usage. For example, taxi drivers, mobile sales reps, couriers, etc could qualify for lease or hire purchase. A school teacher driving to & from work would not qualify. Call Medibank International or speak to your tax adviser. Business finance is usually lower interest rates, and there are many structures available to maximise your budget or tax benefits.

How long does it take to get approved? 
Usually just a few hours, however complex or difficult applications can take a few days. Once approved original finance documents must be signed and the supplier will be paid directly usually within 1-2 days.

Can I get my finance approved before purchasing? 
Yes, providing you can give us an idea of what you’re intending to purchase. Getting pre-purchase approval before you go shopping is a good idea, allowing bargaining power on the showroom floor. Medibank International needs to assess the total amount of finance against the current market value of the item. We must also approve your supplier, as there are many fraudulent vendors in the market place.

Medibank International considers things such as: have you ever filed for bankruptcy, do you own a home, how much is your current income, how long have you been employed at your current job, how long have you lived at your current address, do you have a credit rating, what is your net worth, and so on. The financial officer will then apply some maths to ascertain your credit status, determine the security over the loan, your current debt level, your income, and your ability to repay the debt. From this Medibank International will determine how much money you can borrow. You can do the sums yourself to determine your monthly budget. Simply deduct your expenses from your after-tax earnings.

Are your interest rates competitive?
Medibank International will consistently monitor current interest rates to maintain and offer the most competitive deals in Australia. We challenge you to try & find a better deal. Medibank International will help you beat those banks. However, the interest rate offered may vary by several per cent depending on whether you are a high or low-risk borrower. Contact Medibank International and get a quote now, then compare us with the banks using the comparison rate schedule.

I’ve got a bad credit rating?
Medibank International will always provide you with the most competitive offers it has available, however those with high risk, bad credit ratings or ex-bankrupts may try the 2nd chance product available. This 2nd chance option is more lenient & lax in relation to approval, however is generally a higher interest rate to cover the higher risk.

Can I buy a car privately? Can I buy from a dealer?
Dealer, auction, private sale and re-finance are welcome. Some used vehicles may require a vehicle inspection prior to payment – please discuss with our staff prior to purchase. Call Medibank International before buying your new car – we have access to huge discounts on most new cars.

Do I need to provide anything with my application? 
In most cases, No! If you wish to discuss your application please call and speak to one of our professional consultants on 1300 555 159, or simply apply online.

After a completed application is approved, we may ask for 100 point ID such as Driver’s Licence, Medicare Card etc.

When do I make my first payment? Can I make extra payments?
The first repayment will be due 14 days (if fortnightly) or one month (if monthly) after settlement of a personal loan. Business finance applicants have the first monthly repayment due on the day of settlement. Remaining payments are deducted from your nominated bank account. Extra payments of any amount can be made at any time by cheque, cash, direct deposit and BPAY where applicable (some fees may apply).

The Medibank International personal loan and in fact all loans have monthly or ongoing account keeping fees, these may vary from Financier to Financier and State to State, if you are unsure during your application process, please call 1300 555 159 (toll free) to discuss this with one of our professional consultants. Business applicants are subject to pay any government taxes, stamp duty, REVS, FID, GST and any other government charges – varies in each state.

Once approved, there is a once only fee to cover these costs and those involved with the set up, approval and/or establishment of your loan. This fee varies based on finance amount, state location, & product. Contact us to get an exact quote.

There is no fee if Medibank International does not approve your application.

Have more questions?
Contact us now. Our refreshingly enthusiastic staff will be happy to help.