Description of product
A Consumer Loan is the product used to purchase a car, boat, motor bike, computer etc or to do an extension or renovation on your home for personal use.
The item is used as security for the loan however you have ownership from the beginning of the contract. Upon the final payment you get clear title to the item. A Consumer Loan is regulated under the terms of the Consumer Credit Code.
Features
• Terms range 1 to 5 years.
• Interest rate can be fixed or variable for the life of the loan.
• You can pay your loan via the convenient method of direct debit or BPay.
• You can make a deposit to the transaction of any amount.
• Payments can be made as often as you like (ie weekly, fortnightly) via the BPay method.
• Other costs associated with the transaction can be financed eg rego & insurance.
• You can specify a larger final payment (known as a balloon).
Benefits
• Payments can be structured to suit your individual needs, with your budget and cash-flow taken into consideration.
• With a fixed interest rate you are protected against the market fluctuations.
• More frequent payments reduce your interest charged and the term of your loan.
• By financing other costs and insurance you can preserve your cash for other purposes.
• A deposit will reduce your repayments and your interest charges by reducing the amount borrowed.
• A Balloon payment has the effect of lowering your regular monthly payments and making your car more affordable.
GST
GST is not payable on any part of the Consumer Loan transaction however maybe payable on the purchase price of the vehicle or other items like insurance.