Bank of Melbourne Personal Loans & Car Loans
Introducing Bank of Melbourne
Bank of Melbourne prides itself on being based in Victoria and employing only locals in each of their branches. This gives them a unique understanding of their customers, which allows them to help their customers find solutions that are well suited to their personal situations.
Additionally, they have a serious commitment to helping the community and, as a result, they have considerable investment plans over the next few years. Bank of Melbourne feels that the more the community prospers, the more their customers will prosper, which is what they are dedicated to.
Bank of Melbourne is fully committed to providing their customers with the best possible financial services and products and providing them with a first-class bank of their own.
Featured Bank of Melbourne Personal Loan
Apply for Bank of Melbourne Personal Loan and take an advantage to upgrade your car or consolidate your debt with affordable rates and fees.
- Low interest rate so that you don’t pay more than you need to
- Fixed or variable interest rate options
- Choice of flexible repayment options of weekly, fortnightly or monthly.
- Track and manage your loan repayments using Internet Banking
- Easy to apply and fast approval
- Protect your loan with Consumer Credit Insurance
| Personal Loan | Details | Min Interest Rate | Min Comparison Rate | Min Loan Amount | Min Loan Terms | Apply Fee | |
|---|---|---|---|---|---|---|---|
Bank of Melbourne Secured Personal Loan |
Bank of Melbourne Secured Personal Loan - A handy, easy and fast way to attain your desires with flexible repayment options. | 10.99% | 11.88% | $3000 | 1 year | $195 |   |
Personal Loans: Overview
No matter what your goals or dreams are, Bank of Melbourne has a personal loan on offer that you can use to achieve those goals. Whether you’ve been dreaming of buying a new car, going on a luxury holiday or getting your finances back on track by consolidating your debts, Bank of Melbourne has a solution for you.
Bank of Melbourne offers four different types of personal loans, namely:
- Secured personal loans
- Unsecured personal loans
- Personal Overdraft
- Get Set Loan
All these personal loans come with competitive interest rates and various other benefits, but each one is appropriate for a different type of situation, so let’s take a closer look.
Bank of Melbourne Personal Loans & Car Loans:
Secured Personal Loan
A secured personal loan is a loan where you have to provide some form of security, which is usually an asset. For example, if you want to take out a personal loan to purchase a car, then the car would be used as security for the loan.
Secured personal loans generally come with a lower interest rate because these types of loans are considered to be lower risk for the lender since they have an asset they can recover and sell off to cover the value of the loan if the customer defaults. This also holds true for Bank of Melbourne and you can get a secured personal loan at a highly competitive 10.99% variable interest rate or a fixed rate starting at 10.99% per annum.
The Bank of Melbourne secured personal loan offers customers the option of a variable interest rate or a fixed rate. If you opt for the fixed rate, then the maximum term of your loan will be 5 years, with a minimum of one, while variable rate loans can be taken out for a maximum of 7 years.
In terms of the loan amount, you can borrow up to $80,000, which is significantly more than the unsecured loan. This is because of the lower level of risk involved for the lender, just like with the interest rate.
In terms of fees, you can expect to pay a $195 establishment fee that does not include government charges, such as stamp duty, search fees and so on. You will be charged a $7 monthly administration fee and, if you choose to use the redraw facility, expect to pay $10 per withdrawal.
This is a relatively flexible loan, allowing customers various repayment options, including weekly and monthly, making life a lot easier because you can schedule your repayments with your income. If your income is weekly and you can only make repayments monthly, you are unlikely to put away money every week and you will then end up with one large payment once a month that will be difficult to cover. By opting for a weekly repayment, you can rest easy in the knowledge that you are up to date with your payments and your weekly budget won’t suffer for it.
Additionally, to save money, Bank of Melbourne allows customers to make extra repayments on their secured personal loans as long as they have a variable interest rate. The extra repayments will allow you to pay off your loan much faster, which will translate into substantial savings in interest costs.
If you do make additional repayments and you have an emergency, you can request access to the redraw facility to withdraw some additional cash. However, you might want to avoid using the redraw facility unless it is a serious emergency – your daughter wanting the new iPhone does not qualify – because every extra repayment you make means significant savings and ending up back at square one is pointless unless there is a very good reason behind it.
Bank of Melbourne also makes managing your loan quite simple because you can register for their Internet Banking facility, which will allow you to take care of repayments without having to leave the comfort of your own home. The system can also be used to redraw and make additional repayments on loans that allow it, namely ones with a variable interest rate.
You can also opt to receive electronic statements only, which will save you a lot of clutter and will make it easier to organise your statements as you can download them to your computer and do it electronically. If you still want paper statements, you can print up to two years of statements online, which is a useful feature, especially if you’ve misplaced previous ones.
Click here to apply for Bank of Melbourne Personal Loan
Unsecured Loans
An unsecured personal loan is a loan where no security is required and as a result, the interest rates are slightly higher than secured loans and the loan ceiling is also lower. However, this is a great option if you aren’t looking to borrow a significant amount of money or simply don’t have an asset you can offer up as security.
The Bank of Melbourne unsecured personal loan still comes with competitive rates, even if they are slightly higher than secured personal loans. Thus, you can expect to pay 14.74% on variable rate loans and 14.35% per annum on fixed rate loans.
Variable rate loans can be taken out for a maximum of seven years and a minimum of one year, while fixed rate loans are available for a maximum of five years, just like with secured personal loans.
The other features are similar to the secured personal loan, namely you can enjoy the same flexible repayment options, a redraw facility, Internet Banking and more.
Note that you can make extra repayments on variable rate loans with no fees or penalties involved but if you want to make additional payments on a fixed rate loan, then expect to pay some additional fees.
The main advantage of an unsecured personal loan is that you don’t have to provide any form of security. Thus, you can take that holiday you’ve been dreaming of or renew your wardrobe or anything else you can think of without worrying. However, it is recommended that you think long and hard before you go into debt for something you don’t really need because you never know what the future might bring and you might have difficulty paying off your loan in the future. Just make sure you’ve worked out all the figures in advance and are certain you can still make the payments in any event, even if you lose your primary source of income.
Personal Overdraft
If something can happen then it will, and the worst things seem to happen whenever you don’t have enough free cash available to deal with it. For example, your car breaks down and you have to pay $1,000 to repair it but you don’t have the cash available at that moment. So, what can you do? After all, you need your car to travel to and from work.
The Bank of Melbourne unsecured personal loan is the perfect solution for you because you can access the funds at any time, 24 hours a day and you will only pay interest on the money you use. Furthermore, there is no minimum repayment or fixed repayment amount, meaning that you can pay back the money whenever you can. Remember, though, that the faster you pay it back the less you will have to pay in interest.
The Bank of Melbourne unsecured personal overdraft comes with a variable interest rate of 17.25% and your credit limit can be as low as $500 or as high as $20,000. Note, though, that there is no guarantee you will get that much as it depends on your personal financial situation when you apply, just as there is no guarantee that you will even be approved for this loan.
There is no expiry date, meaning you can enjoy the benefits of your overdraft for as long as you choose. You can also apply online, like with all other personal financial products offered by Bank of Melbourne and it won’t take longer than 15 minutes to fill out the application. During business hours, the bank claims applicant will receive a response within 60 seconds.
Overall, the Bank of Melbourne unsecured personal overdraft can provide a great buffer for those moments when Murphy decides to visit you. You’ll always have the cash you need available for anything from fixing a broken pipe to repairing your car or anything else you can imagine.
However, it is advisable that you don’t spend the money just because it’s available. The idea is to have an emergency fund and, before you use any of it, make sure that you really have an emergency and it’s not just a desire to replace the fridge or the TV because you feel you just must have the brand new model, for example.
Bank of Melbourne Get Set Loan
The Get Set Loan is a flexible line of credit that allows you to pay interest only on the balance you have used. The funds can be used for virtually anything, from school fees to landscaping and anything else you can think of. The advantage of this type of loan is that you can withdraw funds whenever you choose and you can redraw any repayments you have made as this loan is structured similar to a credit card.
Additionally, the loan never expires and there is no set repayment term, allowing you to accomplish much more than a regular secured or unsecured personal loan would. The maximum loan amount is $50,000 and the minimum is $5,000.
As already mentioned you pay interest only on the money you have used, which is a very attractive feature of this loan. The rate is 17.39% and is variable.
Having a line of credit can be incredibly useful, especially since you can reuse the funds, even if you have only made a single repayment. However, as with any other type of loan, make sure that you use for something that will benefit you in the long term. For example, renovating your kitchen or upgrading your home are all worthy projects since they add value to your home but revamping your wardrobe might not be such a great idea.
Remember, the more money you use, the more interest you will pay, so once you do tap into your line of credit, do your best to pay it off as soon as possible to save money. You can always access the money again.
In terms of fees, expect to pay a $150 establishment fee and an administration fee of $9 every month. You will also have to pay a fee of $9 for every transaction that is honoured which goes over your available limit.
When it comes to repayments, you will have to pay a minimum of $50 or 1.25% of your outstanding balance, plus the monthly interest cost and administration fee.
Bank of Melbourne Personal Loans & Car Loans: Common Features
All Bank of Melbourne personal loans can be managed via Internet Banking, making life a lot easier for you. This way you can always see what your outstanding balance is and can even make payments from the comfort of your own home, at any time of day or night.
The Bank of Melbourne website also provides some useful tools, including a personal loan repayment calculator and a loan comparison tool. With the calculator you can work out how much your repayments will be on a weekly, fortnightly or monthly basis. Note, though, that these are just estimates since there is no way of knowing how much you will be able to borrow until after your application has been analysed.
The loan comparison tool is extremely useful as it will help you determine which type of Bank of Melbourne personal loan is the best option for you.
You can also opt for loan protection with a range of insurances offered by Bank of Melbourne, including Get Set Protect Insurance for your Get Set Loan or personal credit protection for the other loan types offered by the bank.
The Benefits of Personal Credit Protection
Life is always changing and unexpected events do occur. In fact, it’s probably safe to say that we should all expect the unexpected to happen on a regular basis. While this might not be a problem in general, when these unexpected occurrences affect your income, things can become serious, especially when you have a loan you need to repay.
Personal credit protection helps people meet their personal loan repayment obligations if they unexpectedly lose their source of income due to sickness, job loss, accident or death. This way you won’t have to worry about any additional financial strain on either you or your family is something does happen.
Additionally, you can make a claim without having any other benefits affected, such as workers compensation, sick leave or Centrelink.
So, with personal credit protection you won’t have to worry about your repayments because they will be covered for however long you are unable to work or in the case of involuntary unemployment. In the worst case scenario, namely if you pass away, this policy will pay your loan in full up to a maximum of $50,000 so your family will not have to deal with additional financial distress.
Getting personal credit protection is easy and it requires minimal paperwork. You can apply either when you apply for a new personal loan from Bank of Melbourne or when you are refinancing an existing loan at any branch or via telephone. The premium is charged only once and is included in the loan you are applying for.
Debt Consolidation with Bank of Melbourne
One of the easiest ways to get your debt under control and reduce the amount of money you are paying in fees and interest costs is by consolidating all your debts under a single loan. Thus, if you have multiple credit cards and store cards with outstanding balances, and a car loan, for example, you can consolidate all these debts under a single Bank of Melbourne personal loan, which will make it easier for you to manage your debts as well as helping you save money.
Suggested loans for debt consolidation are the unsecured personal loan, the secured personal loan or the Get Set Loan. All of these have competitive rates but remember, that if you do have an asset you can use as security, such as a car, you can get a much better rate with a secured personal loan.
Purchase a Vehicle with Bank of Melbourne
If you want to buy a car, a motorbike or even a boat, you can safely turn to Bank of Melbourne as they have the perfect solution. You can opt either for the Bank of Melbourne Secured Personal Loan or the Bank of Melbourne Unsecured Personal Loan. However, it is advisable that you opt for the secured loan simply because the rate is more attractive.
Note, though, that with a secured loan, the car being used as security should be no older than 12 years when the loan expires. So, if you are opting for a variable rate loan for 7 years, the car you purchase now cannot be more than 5 years old.
If, however, you want to buy an older vehicle or an imported one, your best option is the unsecured personal loan.
Take a Trip with Bank of Melbourne
You’ve been working hard for years but have never gone away on holiday because there was always something else to deal with, some other priority. Well, isn’t it about time you take some much needed time for yourself to have a little fun, whether it’s with your whole family or just your significant other?
Or have you been postponing your wedding or honeymoon simply because you can’t afford to go away somewhere to enjoy some time together? Well, Bank of Melbourne offers some great options for you so you can finally go away on that trip you’ve been dreaming of forever.
You can choose either the unsecured personal loan or the Get Set Loan, as both have competitive rates, and you can finally enjoy your holiday without stressing out over financial issues.
Save Money by Minimising Fees and Interest Costs
Bank of Melbourne offers quite a few personal loans, designed to suit most people’s needs. All these loans are flexible when it comes to the loan term, repayment options and offer great rates, but that doesn’t mean you shouldn’t do everything you can to save money.
So, first you need to decide on the type of loan that is better for you. For example, a fixed rate loan means that your repayment will always be the same and you won’t suffer from increased interest rates. You can make additional repayments, but there is a limit on how much you can pay in advance before you are charged some fees, so be careful.
With a variable rate loan you have more flexibility as you can make additional repayments without incurring any fees. Note, though, that your rates will fluctuate throughout the loan term but this can sometimes be a good thing, especially when interest rates drop.
One way to save money is to set your payments on auto-pilot. This way you will not miss the due date and have to pay fees for being late or missing a payment completely. Simply set up direct debit to make the payment on the same day that you receive your wages and you can sit back and relax. It’s important that you make sure you choose the date wisely so that you have money available in the account when the payment is to go through or you will incur even more fees and penalties.
Of course, the best way to minimise interest costs is to pay off your loan as fast as you can. The faster you pay off your loan, the less interest you will owe but be careful, especially with fixed rate loans, because the break out fees might negate any interest savings you make.
How to Apply for a Personal Loan from Bank of Melbourne
Applying for a Bank of Melbourne personal loan is extremely easy. It can be done online in a matter of minutes and the only requirement is that you are over 18 years of age and are a permanent resident of Australia.
The application itself only takes 10 to 15 minutes to fill out, but make sure you have the following information handy to make the process easier:
- If you have a driver’s licence, make sure you have the number handy;
- Weekly income after tax;
- Information regarding your personal financial situation, including savings, investments and assets;
- Any other debts you have, their repayment amounts and how much you still owe on each – this includes store cards and credit cards.
- Once you have filled out the application and submitted it, Bank of Melbourne claims that you will receive a response virtually immediately regarding the outcome. Note, though, that a credit check and verification of the details provided will be conducted prior to final approval and you might have to provide the bank with additional details.
With Bank of Melbourne you can realise your dreams and achieve your goals as they offer a wide range of personal loans that are flexible and feature competitive rates and fees. So, if you want to buy a new car, go on holiday or even finance the redecoration of your home, you can do all this and much more with the personal loans, especially in terms of buying new cars you can consider Secured Personal Loan offered by Bank of Melbourne.
Click here to apply for Bank of Melbourne Personal Loan
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