Essential Simple Tips for Securing Your Ideal Loan Successfully

Simple Tips On Getting Your Loan

What are some simple tips for getting a loan?

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

So, you want to get a loan? Here are some simple tips that might help you make more informed decisions about the type of loan you buy, and from whom.

As you would probably be aware, a loan varies according to:

The amount borrowed;
The interest rate;
The type of rate (fixed or variable);
The term (length in years) of the loan;
Deposit (downpayment);
Associated fees (broker, origination, prepayment etc.);
Insurance required by the lender.

When you get a loan, you are buying money for more than it cost the lender. Simple.

Car Finance- Quick & Easy

If you are in the market for a new or used car, then we're in the market to help you arrange the money. Our car loan & leasing finance service is backed by a national panel of car loan specialists who will establish your eligibility, find lender/s offering the best deals for your situation - and help you through the approval and settlement process. No charge to you - and no obligation to proceed with any recommendations offered.

... start your car loan here ...

If you are comparing loan offers, it is a mistake to consider the interest rate alone. Depending on the type of loan, there may also be arrangement fees and *prepayment penalty* clauses to consider. Therefore, you should be sure to take into account the total cost of your loan when comparing options - and definitely before committing.

Keep a copy of every cheque you write for your loan. If you call your lender about your loan, make sure you get the full name of the person with whom you speak. Make a note of it. You may be dealing with a large bureaucracy, and will need to refer to this conversation later.

Do a budget. Make sure you use realistic figures. Keep all of your receipts, or keep a record, for all of the money that you spend for a month. Use that to help you compile the first draft.

Be prepared to review and update it regularly. A co-ordinated budget allows you to get the most loan for your money without beggaring yourself, while getting rid of wasteful spending.

Where possible you should avoid loans that contain combinations of the following attributes:

Short-term;
High up-front fees;
High rates;
Balloon payments;
Excessively high late fees;
Prepayment penalties.

These loans can potentially swallow up any equity you may have, and ruin your financial position.

Beware of prepayment penalties. Many 'no fee' credit lines have a pre-payment penalty. There is no need to agree get a loan which contains any significant prepayment penalty, if you have good credit. One of the smartest things someone can do with a loan is to prepay it.

All you need to do is contact your lender and ask for its prepayment procedure. Then, every so often, check the loan balance the lender sends you, to make sure the additional payments have been accounted properly.

Be wary of promises of getting a loan quickly. Many borrowers are told that their loans will close within a particular time. They don't make payments on existing debts, in anticipation of the new loan.

After several delays, they can become delinquent, with no money from the new loan. Some mortgage companies then order new credit reports, and charge the borrowers higher fees, and a higher rate, because of the delinquent loans, which resulted from delays caused by the loan company!

Submit a neat application form; it shows you're business-like and efficient. It will be read and assessed by a human being; appearances count.

Only pay up-front fees to well-known or highly recommended institutions. While most institutions are reputable, it is always best to be cautious.

Don't sign documents without reading them. As soon as possible, before you close the deal, review the documents you'll be signing, and make sure you understand them, so you won't have to sign them in a hurry.

Keep your credit line as small as possible. You could be turned down for other loans, even when your credit line has a zero balance, since a large credit-line indicates a large potential outgoings.

If your spending is out of control, don't get a home equity credit line to pay off your credit cards. Don't put your home at risk by spending large amounts on your credit cards, after paying them off with your credit line.

Pay off small debts before the due date. Cancel credit cards you are not using. Loan officers tend to count the total line of credit - even if you owe nothing - as a liability. They will only cloud the picture. Close credit lines that you have no intention of using in the near future. Also look closely at the interest rates and fees, when deciding which cards to keep.

Choose a lender with a clean record with the industry watchdogs in your country. The mortgage industry receives a great number of complaints against it. In Australia, mortgage and finance brokers of any kind must be licensed with A.S.I.C, and all licensing information for brokers can be found on the A.S.I.C. website.

Shop for rates when the market is calm. Rates change from day to day, so compare lenders. The quotes you get should all be from the same time period.

Check your payments are correct - Do the mathematics. There's a one in ten chance you could be paying more than you should.

If you find yourself in a dispute with a lender about a payment or another issue, don't send correspondence to the same address you send your payment. You need to deal with the decision-makers, not the account clerks.

Published: Sunday, 1st Aug 2021
Author: Paige Estritori

Business Loans Articles

From Application to Expansion: The Complete Roadmap to a Successful Business Loan Journey

For many Australian entrepreneurs, a business loan is a vital step towards achieving growth and success. Access to capital can fuel expansion, help manage cash flow, and provide the necessary resources to capitalize on new opportunities. However, navigating the journey from application to approval, and eventually, to expansion, presents its own set of challenges. - read more

From Setbacks to Success: Overcoming Credit Challenges and Fueling Business Growth

In the dynamic world of business, navigating credit challenges is a reality for many Australian business owners. These challenges can stem from various sources, including unpaid customer invoices, unexpected expenses, or the complexities of managing cash flow. Such hurdles often come at inopportune moments, leading to recurring stress for entrepreneurs trying to maintain a stable financial standing. - read more

Alternative Funding Options for Your Australian Business

When it comes to starting or expanding a business in Australia, securing funding is often a top priority. However, traditional funding options, such as bank loans or government grants, can be difficult to obtain for small businesses. - read more

How to Improve Your Credit Score Before Applying for a Business Loan

Your credit score is a crucial factor that lenders examine when you apply for a loan. It acts as a numerical representation of your creditworthiness, helping lenders to determine the risk involved in offering you a loan. Essentially, it helps them predict your ability to repay the loan based on your past financial behaviour. - read more

Startup Loans vs. Business Lines of Credit: Which is Better for Your Company?

Starting a new business is an exciting journey, but it often requires a significant amount of funding to get off the ground. Whether it's for purchasing equipment, hiring staff, or marketing your new venture, securing the right type of financing is crucial for success. - read more

A Growth Blueprint: Crafting a Financial Plan for Expanding Enterprises

Financial planning plays a crucial role when businesses are poised for growth. As enterprises expand, a well-crafted financial plan acts as a guiding framework to navigate the complexities that come with scaling operations. This plan helps in ensuring that resources are meticulously allocated and potential financial hurdles are effectively managed. - read more

Mastering Cash Flow: Essential Tips for Expanding Your Business's Working Capital

Cash flow is the lifeblood of any business, signifying the money that flows in and out of your operations. It's essential for covering daily expenses, paying employees, and capitalizing on growth opportunities. Maintaining a healthy cash flow ensures that a business can meet its obligations and invest in its future. - read more

Finance News

NAB Continues to Dominate Australia's Expanding Business Lending Market

06 Mar 2026: Paige Estritori

In January 2026, Australia's business lending landscape reached a significant milestone, with authorised deposit-taking institutions (ADIs) reporting a combined total of $1.2 trillion in loans to non-financial businesses. This marks a 9.3% increase over the previous year and a substantial 53.9% growth since January 2020. Among the major players, National Australia Bank (NAB) continues to lead, boasting a loan book of $261.1 billion, reflecting an 11.6% year-on-year growth. - read more

Westpac's Bold Move to Reinforce Its Business Lending Focus

06 Mar 2026: Paige Estritori

In a strategic effort to bolster its presence in the business lending sector, Westpac Banking Corporation has announced a significant restructuring of its operations. The bank plans to replace a substantial number of in-branch tellers with business bankers, aiming to enhance support for small and medium-sized enterprises (SMEs) across Australia. - read more

Renown Lending's Nationwide Expansion to Support Australian SMEs

06 Mar 2026: Paige Estritori

In response to the escalating demand for small and medium-sized enterprise (SME) financing, Renown Lending has announced an expansion of its funding pool from $250 million to $400 million. This substantial increase is designed to provide fast and flexible funding solutions to SMEs across all Australian states. - read more

NAB's Business Lending Surges by 7% Annually

26 Feb 2026: Paige Estritori

National Australia Bank (NAB) has reported a significant 7% year-on-year growth in its business lending portfolio, bringing the total to $336.2 billion. This growth underscores NAB's commitment to supporting small and medium-sized enterprises (SMEs) across Australia. - read more

CBA's Business Lending Hits $168 Billion Mark

26 Feb 2026: Paige Estritori

The Commonwealth Bank of Australia (CBA) has announced a substantial 12% increase in its business lending portfolio, reaching $168 billion in the first half of 2026. This growth rate exceeds the bank's compound annual growth rate of 10.7%, indicating a strong performance in the business lending sector. - read more

RBA's Cash Rate Hike to 3.85%: Implications for SMEs

26 Feb 2026: Paige Estritori

The Reserve Bank of Australia (RBA) has raised the official cash rate by 0.25 percentage points to 3.85%, marking the first increase in over two years. This decision, driven by persistent inflationary pressures, has significant implications for small and medium-sized enterprises (SMEs) across the country. - read more

Commonwealth Bank's Business Lending Reaches New Heights

18 Feb 2026: Paige Estritori

The Commonwealth Bank of Australia (CBA) has reported a significant 12% increase in its business lending portfolio, reaching $168 billion by December 2025. This growth underscores the bank's commitment to supporting Australian businesses and reflects a broader economic confidence among enterprises. - read more

Click for more Finance News

Need Help Finding a Loan?

All finance quotes are provided free (via our secure server) and without obligation.
We respect your privacy.

Knowledgebase

Price-to-Earnings Ratio (P/E):
A valuation ratio of a company's current share price compared to its per-share earnings.