Personal Cash Loans in New Zealand

Personal Cash Loans in New Zealand
Personal cash loans in New Zealand

If you're looking for a cash loan in New Zealand you're probably going to end up getting it in the form of a personal loan.

These versatile loans encompass a wide range of finance types and can be used for anything from buying your dream car to paying off an overdue bill.

From buying a vehicle, purchasing your dream wedding dress, and upgrading your home to covering travel expenses, paying overdue bills and buying groceries when there’s simply too much month at the end of your money – a personal loan can help you achieve your goals or, help you get by during difficult times.

They can be as small as a payday loan of just a few Dollars or as large as a vehicle loan which can go up to hundreds of thousands of Dollars. Loansfinder is dedicated to helping you find out what loan providers have to offer, what type of loan is right for you and how you can use credit to your advantage.

If you're ready to find a lender that matches your needs and financial circumstances then you're in the right place because LoansFinder was designed with this exact purpose in mind. Below this article you will find a grid which includes a range of personal loan providers. You can click on each lender and read more about them and the products and services which they offer to assist you in selecting the most appropriate lender for your needs. 

Getting a Personal Loan in New Zealand

The best way to find a loan quickly and easily is to work with an online lender. Most online lenders offer quick online loans that do not differ from the traditional ones offered by storefront lenders. In fact, many lenders that started off as storefront lenders now operate online in an attempt to stay competitive and provide an even faster and more convenient service to their clients.

By making use of this site you will find complete information on New Zealands top lenders and their loan products including interest rates, fees and terms and conditions. Registered online lenders, and particularity, those which we have listed below can be trusted, as they are registered and have been approved as compliant sources of finance. A compliant lender is simply one which has shon to adhere fully to the rules and regulations that all lenders must abide by in New Zealand.

Qualifying for Credit

Registered lenders are legally required to grant personal loans only to applicants who have sufficient disposable income to repay them. In order to assess the applicant's affordability, the lender takes into account the person's gross, net and disposable income.

If you earn a high salary, but you have several active loans, you will have a smaller disposable income and your chances of approval will be lower. That is why lenders look into the whole picture.

Each lender sets the income requirements for personal loan approval individually. These requirements are not regulated by the Credit Contracts and Consumer Finance Act 2003. Similarly, it is the responsibility of the borrower to calculate the affordability of the loan before accepting an offer.

When you apply for a loan, the lender will perform a credit check in addition to income assessment. If you have a clean credit record, you will have the best chances of getting approved. That is why it pays off to be a responsible payee and to keep a check on your credit record so as to ensure that errors are corrected.

Getting a Loan Online

When taking out an online loan you will typically have to fill out, and submit, an online loan application form as found on the website of the particular lender. The lender will then use your personal data to ensure you qualify for a loan.

In order to qualify for a loan you would typically have to show the lender that you are earning a stable income, are a NZ resident, are over the age of 18, are not in excessive debt and that you are not bankrupt or in financial distress. 

After you fill out and sign the neccessary documents, you can fax your supporting documents or scan them and send them via email. If you qualify for a short-term loan or personal loan of any form, you will be sent a set of documents which will include a loan agreement.

You will have to read this document and sign and submit it for your loan to be credited. A quick loan is typically wired to your bank account upon the receipt of the signed loan contract but can take anything up to 24 hours depending on the loan amount and the bank with which you bank.

Finding the Right Loan

When searching for a loan provider easy access and speed are important benefits to have, but you have to look into the features closely to ensure that they match your needs and ability to repay. The first feature to pay attention to is the interest rate. Loans with a shorter term typically have higher interest rates.

Fees add to the cost of borrowing as well and unless you are taking into consideration the APR or, Annual Percentage Rate of the loan these fees will not be included in the cost of the loan. You have to calculate the total cost of the loan given all interest and fee charges to ensure that you will be able to repay it. 

In New Zealand, the rights of consumers taking out loans are protected by the Credit Contracts and Consumer Finance Act 2003. The Act does not set interest rate limits, but determines the methods which lenders are allowed to use in order to calculate the rates. Lenders are also required to disclose the terms and conditions of their loans fully and clearly.

Repaying your Loan

You should prepare a monthly budget based on your income and expenses that includes the loan payments. You should do your best not to overspend, especially on things which you do not actually need and instead you should set aside some emergency cash to get you through at least 6 months without your typical income.

Personal Loan Types & Options

The personal loans on offer in New Zealand can be classified into two types depending on their term. The different terms correspond to different loan amounts and repayment structures. Let's take a closer look at the two main types of loans.

Short & Mid-Term Loans

These loans can have a term of between 30 days and 10 years. Quick cash loans, payday loans and auto loans belong to this group. Credit cards and overdrafts fall into this term category as well, even though they are not loans but lines of credit.

With a short or mid term loan, you can typically borrow between NZ$100 and NZ$30,000. You may be able to borrow more as well. It all depends on your income and on your ability to repay the loan. Most short and mid term loans are unsecured and as a result, the lender assumes a higher risk and charges a higher interest rate.

The lender takes into account the credit record of the applicant when determining the interest rate as well. Riskier borrowers also have to pay higher interest.

Long Term Loans

Long term loans have repayment terms that exceed 10 years. Most of these loans are for large amounts. They are typically secured against an asset and this asset is usually the house of the borrower. They commonly include home loans, home equity loans and debt consolidation loans.

Overall, unsecured personal loans are useful for dealing with cash emergencies and for financing small purchases and projects. They are easy to get especially for people with high disposable income and good credit history. They should not be used for repaying other loans because they have higher interest rate compared to their secured counterparts.

Secured loans on the other hand can be both of a short and long term nature but, are typically used for long term loans of large amounts. If you have debt repayment problems it is best to avoid trying to use a personal loan to repay debts, but rather you should use debt counselling and debt consolidation as primary options.


Personal Loans – New Zealand lenders