There are many types of personal loans offered by lenders in New Zealand. The most commonly available loans are listed below and are generally available to anyone with a reasonable credit score and borrower profile.
There are also many specialist types of loans that are offered by certain lenders that are tailored toward certain uses or purchases.
Our personal loan guides provide detailed information to help borrowers better understand each step of the personal loan application and approval process.
Each of the guides below covers a unique part of the personal loan process, beginning with how to find and choose a lender.
Before you apply for a personal loan, you’ll want to know how much you can afford to borrow. One of the easiest ways to estimate this is to use a loan calculator.
Simply enter the details of any loan offer you find into one of the calculators below, and you can quickly view the repayments you’ll make over various repayment frequencies.
If you're experiencing financial hardship and struggling with debt, you may find speaking to a financial expert can help determine your next steps.
You can speak to an expert for free by calling the MoneyTalks helpline operated by FinCap on 0800 345 123.
MoneyTalks Helpline operates between 8 a.m. and 5 p.m. Monday to Friday, and between 10 a.m. and 2 p.m. on Saturdays.
Generally, you can borrow up to $50,000 with an unsecured personal loan, and up to $75,000 with a secured personal loan. Most lenders will also have a minimum borrowing amount, which can vary between $200 and $3,000, depending on the type of loan you apply for.
It’s recommended that, before committing to any personal loan application, you engage a qualified financial advisor to assess your personal circumstances and advise on the most appropriate loan for your financial situation.
Approval speed on personal loans will vary between lenders. In general, banks have the slowest approval speed on personal loans, while online lenders can offer same-day (some even offer instant approval) approval on the majority of personal loan applications.
You can consider an unsecured personal loan or a secured personal loan if you're wishing to purchase a vehicle, although you may wish to consider a specific car loan product if you only plan to use the funds to purchase the vehicle.
You can, however, there are many specific business loans in New Zealand that may be better suited to acquiring finance for your business - such as a loan for business vehicles, or a business line of credit to access variable funding when needed.
The best way to compare personal loan interest rates is to shop around. Use comparison sites, speak to a broker or visit the websites of lenders you’re considering and check for yourself. Use the comparison rate to compare personal loans as this expresses the true cost of the loan.
Personal loans generally use fixed rates, which stay the same, or variable rates, which can change over time. Whether a fixed or variable rate is better for you depends on your circumstances and your goals. If you want to pay your loan off early without incurring extra fees, a variable-rate loan may be an option. If you want to pay the minimum amount and keep your repayments the same a fixed rate may be better.
Generally secured personal loans have lower interest rates than unsecured personal loans. That’s because lenders consider them to be lower risk. To pay less interest on your personal loan, pay the loan off faster, make extra repayments and make sure you secure a loan with low fees.