3 Simple steps to achieve a low interest rate on your personal loan

3 steps to achieve low interest rate
Get a lower interest rate on your personal loan

Loan approval doesn’t have to be a complicated mission when you need money for that personal investment that perhaps no one else fully understands, however, it means something to you.

There will come a time when you need to renovate your home, whether it is a new kitchen or bathroom, or perhaps you have a big idea that you need to invest some money in and you don’t have access to any capital of your own.

Whatever it might be, a personal loan will assist you on this mission and it doesn’t have to cost you any limbs in the process!

With all the online tools at your disposal, it’s actually one of the easiest things you’ll do with an internet connection and some enthusiasm. Sitting at home, with no distractions around, just you and the world wide web, you can quickly load all the information that you need to in order to apply for a personal loan.

It might be easy to get the process underway, but how easy is it to get the best rate? How easy is it to ensure the terms and conditions match your needs? Well, the short answer is that it’s not as easy. We’re also smart enough to know that in most cases, cheap is not also better, so then where is the line between getting the best bang for the buck?

We believe we can show you exactly how to find that elusive line and walk away with the best deal when it comes to a low-interest rate with exceptional rewards. Take a peek below, we have 3 useful financial tips!

Personal loan calculator

The interest rate of a loan will vary based on your credit score and risk profile.
This personal loan calculator is for illustration purposes only.
The use of this loan calculator is subject to our terms of use.

Firstly, achieve a great credit score

This is, of course, one of the predominant factors when lenders consider your loan approval. A poor credit score will count against you. If it’s bad and you know it is, improves it before even searching for a loan website.

Creditworthiness is an essential checkbox to receiving a favoured rate, i.e. a low-interest rate when it comes time to loan application approval. If you are a reliable payer, you are trustworthy, if you’re trustworthy, you will receive a decent interest rate – it’s that simple!

So, if your score is unknown to you, it’s a good idea to determine what it is by using a handy site that offers the tools to do the job.  The best part is it costs you nothing, so you have nothing to lose and you’ll be better off for having looked it up.

Tried it? Do you have a low score? Now’s the time to improve it. Even though it’s going to take a little time, it will work out better in the long run. You’re looking at saving thousands of rands if you just wait a bit and improve your score as opposed to taking up the offer of a loan for people with bad credit. Those rates are far too high to afford in the long term. 

3 ways to go about improving your score are firstly paying your bills every month and on time. Secondly, you should try to consolidate any outstanding debt, and lastly, pay off your credit card debt.

Compare different loan options

Shopping? Yes, where lenders are concerned, New Zealanders truly have their pick of the litter. Remember though, being eligible for a loan doesn’t take up the first option that comes your way. You have to remember that if it’s a long-term payment, there is a lot of money to lose and a lot to be saved just by choosing the best lender in NZ.

Shop for deals on rates, shop for minimum charges, and even shop for the most ideal terms and conditions.

All this shopping and not much time seem to be the biggest issue when it comes to choosing a lender. But thanks to technology, we’re able to make decisions in no time at all with the help of handy loan sites that point you in the right direction straight off the bat with comparison tools that are easy to use.

Large banks have good coverage, while credit unions are able to offer better rates and terms. Kiwis that are self-employed are therefore safe since they will get help one way or another. With your current bank or provider, you might be able to score better rates just for being a current client. So, it’s always a good idea to check them first. Not that we want you to avoid a shopping spree, but if you can get this one in the bag, the sooner the better!

Choose secured finance

Secured loans are no doubt a far better option than unsecured loans when looking at the interest rate your loan will attract. This route means telling your provider that you are not to be seen as a risk and therefore should be rewarded with a lower rate of interest.

Just by offering collateral, a bank will immediately have less risk on their books since they can repossess or take ownership of your collateral in the event that you cannot afford to repay the loan in full.

Popular & reliable direct lenders offering Personal loans

  1. Squirrel Money Personal loan

    Squirrel Money

    • Loans up to $20,000
    • Term up to 3 years
    • Interest from 8.95%
  2. ANZ Personal loan


    • Loans up to $50,000
    • Term up to 7 years
    • Interest from 13.90%
  3. Oxford Finance Personal loan

    Oxford Finance

    • Loans up to $50,000
    • Term up to 5 years
    • Interest from 10.95%
  4. Geneva Finance Personal loan

    Geneva Finance

    • Loans up to $50,000
    • Term up to 5 years
    • Interest from 11.95%