Back to blog categoriesHow Much Can I Borrow for a Personal Loan in NZ? Comparison by Glimp
Jan 11, 2022
Personal Loan
Are you looking for the best personal loan in NZ? Whether it's for mortgage, education, home renovation, or future travel plans, we set your expectations on how much you can borrow for this type of loan.
Borrowing money from a friend is the same as applying for a loan. The only difference is that you cannot negotiate the amount of interest on a loan with a lender. Lenders might be a bank or a corporation that specialises in lending.
If you borrow money from a friend, you may not have to pay interest if you fail to pay on time. A bank, on the other hand, will charge you for every delay, modification, and, in some cases, top-up payment charges on your loan.
Why get a personal loan?
A personal loan is intended to give additional funds in instances where you do not have enough money in your account. This could be due to an emergency, or when you need to pay multiple bills that are due ASAP.
A personal loan can also be used in the following situations:
- Debt consolidation - Pay off multiple debts due including credit card debt.
- Emergency assistance - Pay hospital bills, unexpected car repair, or even funeral expenses.
- Car financing - When you want to buy or lease a car, specifically for paying the first installment.
- Home renovations or moving costs - Fix or make upgrades to your home.
- Travel expenses - But plane tickets or pocket money during a trip.
- School fees - Pay tuition and other miscellaneous fees.
- Moving costs - Cover for major expenses when moving to a new place or another country.
Read: Balance Transfer Credit Card Vs. Personal Loan
Do I need to give security for a personal loan?
There are two types of personal loans: secured and unsecured. A secured personal loan requires a collateral, usually an item or possession of good value and condition, in case you defaulted in your payment.
While an unsecured personal loan doesn't require any collateral, it tends to have a higher minimum loan amount and stricter requirements than a secured loan.
Read: Need Cash? Discover These Personal Loans Options In NZ
Can I get approved for a personal loan even if I have bad credit?
Borrowers with low credit scores may be approved for low-interest personal loans if they meet specific requirements set by the lending company.
Use a personal loan calculator to find out how much you'll need to repay monthly. This can assess the amount of money you can borrow, the repayment period, and the loan term.
| Lender | Secured Personal Loan Amount | Unsecured Personal Loan Amount |
| ANZ | - | $3,000 to $40,000 |
| ASB | minimum of $2,000 | minimum of $20,000 |
| BNZ | - | $1,000 to $30,000 |
| The Co-Operative Bank | - | $3,000 to $50,000 |
| Gem Finance | - | minimum of $2,000 |
| Harmoney | - | $2,000 to $70,000 |
| Lending Crowd | $5,050 to $200,000 | $2,000 to $50,000 |
| Max Loans | $1,000 to $50,000 | $1,000 to $50,000 |
| Unity | $2,000 to $60,000 | $2,000 to $60,000 |
| Westpac | - | up to $50,000 or higher |
| Nectar | - | $1,000 to $30,000 |
Read: Car Finance vs. Personal Loans
Apply for a personal loan
Before applying for a personal loan, make sure you carefully evaluate your needs. When you do get approved, make sure you read the fine print before signing the contract.
To be sure, always compare personal loan rates and providers with the help of glimp.
Read More Articles
+
Excellent service. Responsive and easy to deal with. Got me an awesome deal on Broadband. Well worth calling to see what they can do. 👍
Really great service, helped us save about 30% on power plus a free $100 sign up bonus. Very fast and efficient.
Very helpful and informative. Lovely chatting with them on the phone, helped me find a power supplier, pretty simple and straight forward
So easy to use, very helpful and got a great deal with my power and gas