Bendigo Bank Personal Loans
While you have likely heard of the Big Four banks here in Australia, you may not know which bank takes out fifth spot. Well, in case you were wondering, it’s Bendigo Bank. As Australia’s fifth largest retail bank, Bendigo Bank has more than 1.9 million customers, served by more than 7,000 employees, and is a top 100 ASX listed company with more than 110,000 shareholders.
Proudly part of the Bendigo and Adelaide Bank Group, Bendigo Bank can trace its origins back more than 160 years. Established in two great Australian communities, Bendigo in Victoria and Adelaide in South Australia, the bank actually started out as building societies, created to help Australians buy their own homes.
Over the years, it has grown considerably, while expanding its range to include banking, loans, insurance and investment products. Despite its growth, however, the bank has still retained that desire to help its customers as it serves the surrounding community.
What does this mean for you as a potential borrower? If you choose Bendigo Bank as your lender, you can choose from a wide range of personal loans, including green loans and personal loans for students, with secured and unsecured options to choose from. Bendigo Bank backs that up with competitive rates and fees, excellent customer service and an extensive branch network in more than 500 locations Australia-wide.
While Bendigo Bank offers personal loans designed to fund green projects and personal loans for students, we’re going to look at its standard personal loans first. Perfectly flexible, these personal loans can be used for almost any purpose, whether that’s a holiday, home renovations, a car or consolidation of debt.
Within this category of loans, Bendigo Bank offers both secured and unsecured options.
Secured Personal Loan
With a secured personal loan from Bendigo Bank, you would secure an asset against the loan, using that asset as collateral. What does this mean exactly? When you choose this type of loan, you place an asset of value – typically your home or car – against the loan, guaranteeing the loan should you fail to repay it.
This has both pros and cons.
- You reduce the risk for the lender, which can make it easier to get approved. Before approving any loan, lenders have to assess the risk of lending to you as a borrower. If you are deemed high risk, the lender may choose to reject your application, after deciding you may be unable to repay the loan.However, by choosing a secured loan, you can reduce the risk for the lender. While you will still have to meet the lender’s eligibility criteria, demonstrating that your circumstances will allow you to fully repay the loan, that secured asset backs the loan, creating collateral the lender can use should you be unable to repay the loan in full.
- That lower risk can also mean lower rates on the loan. Rewarding you for lowering their risk by placing an asset against the loan, most lenders offer lower rates on secured loans than unsecured loans. This can make the loan more affordable overall, reducing the amount of interest you pay, while lowering your repayments.
- You risk losing your asset if you are unable to repay the loan. Obviously, you have to be aware of the risk to you as a borrower before choosing a secured loan. If you cannot repay the loan, the lender may have the right to repossess the asset secured against the loan, to then sell it to recoup its costs. This makes it ever-important to only apply for a loan that you know you can afford to pay back.
Unsecured Personal Loan
On the other hand, an unsecured personal loan requires no collateral. Again, there are pros and cons to choosing this type of loan.
- If you don’t have an asset of value, you can still get a loan. Whether you don’t have an asset worthy of using as collateral on a loan, or you simply don’t want to risk using the asset you have, you can still get a loan, as long as you meet the lender’s eligibility criteria.
- There is no asset to lose, should you fail to repay the loan. With no collateral placed against the loan, you stand to lose less if you are unable to repay the loan for whatever reason. With that being said, you will still face serious consequences if you fail to pay off the loan, the least of which will include a hit to your credit report.
- You will likely pay higher rates. Unsecured personal loans tend to have higher rates than secured personal loans. This will increase the cost of borrowing, which may result in you paying higher repayments, or stretching the loan over a longer period to make it more affordable. Either way, your interest costs will likely be higher.
- You will need to work harder to prove your eligibility. While all borrowers have to prove their ability to repay a loan, if you opt for an unsecured personal loan, you may have to work harder to be approved. You will need to have good credit, and you will need to show you have a steady employment history, with a sufficient income to cover both your repayments and all other outgoings.
Aside from the fact that Bendigo Bank’s personal loans are secured or unsecured, most other loan features are pretty similar for both types of loan.
- Loan Term. You can choose to repay your loan over one to seven years. This means you can repay your loan over a short period if you have the funds to cover larger repayments, or you can opt for a longer term to make your repayment schedule a bit more manageable.TIP: Choosing a longer loan term will usually result in higher interest costs. While it’s important to make sure you can afford your repayments each month, avoid extending the loan term more than you need to, or you may end up paying over the odds in interest.
- Fixed Rate. Bendigo Bank offers a fixed rate on its personal loans. This means your repayments will always remain the same throughout the life of the loan. This can make it easier to budget, as you always know what your repayment will be. It can also let you lock in a rate, safe in the knowledge that your rate – and repayment – will never go up.
- Repayment Frequency. Bendigo Bank allows you to choose weekly, fortnightly or monthly repayments. This could make it easier to allocate your paycheque when it comes in, allowing you to spread your outgoings more evenly.
- Additional Repayments. Unlike many fixed rate personal loans, Bendigo Bank allows borrowers to make additional repayments when it suits them. Paying extra onto the loan in this way allows you to chip away at your loan, paying it off faster as you pay less in interest.
- No Fixed Break Costs. While many lenders charge high break costs when paying off fixed rate loans early, Bendigo Bank charges a very small early repayment fee.
- Redraw. When you make additional repayments, you have the option to withdraw them at any time using Bendigo Bank’s free online redraw facility. This could encourage you to pay in more when you can, safe in the knowledge you can redraw those funds in the future.
- Low Fees. As with many lenders, Bendigo Bank charges fees on its personal loans. However, these fees are pretty reasonable. Check out the fee schedule for more details.
Time to go into a bit more detail on those fees. When choosing a Bendigo Bank personal loan, you will pay both an application fee as a one-off establishment fee, and an ongoing monthly fee. If you opt for a secured personal loan, you will also pay a one-off document preparation fee and security processing fee, providing details of the asset being used to secure the loan.
While paying off the loan, you will pay no fees for online or manual redraws. You will, however, pay a default fee if your loan is in arrears. There is a small early repayment fee to pay should you repay your loan before the original term.
Green Personal Loans
Moving on to Bendigo Bank’s green personal loans. As the name suggests, these ‘green’ loans are designed to allow borrowers to fund green projects. Again, there are secured and unsecured options available.
- Using a secured green loan from Bendigo Bank, you can purchase an ‘A’ rated vehicle emitting less than 130g of CO2 per kilometre.
- Using an unsecured green loan from Bendigo Bank, you can use the funds to invest in green projects or products, which could include solar power systems, solar hot water, grey water treatment systems, or top energy saving white goods.
- Rewarding borrowers for ‘going green’, these loans offer lower rates than the bank’s corresponding secured and unsecured personal loans.
- With these loans, you will pay a fixed rate that will not change over the life of the loan.
- Choosing weekly, fortnightly or monthly repayments, you can create a repayment schedule to suit your budget, repaying the loan over one to seven years.
- You can make additional repayments when it suits you – with the option to redraw those repayments should you need to, using the bank’s free redraw facility.
- Loan amounts start at $2,000. The amount you will be approved for will depend on your personal circumstances.
- Bendigo Bank helps to keep costs down with low establishment and ongoing fees. There is also a very small early repayment fee if you pay off the loan early.
Student Personal Loans
Another way Bendigo Bank sets itself apart from other lenders is the fact that it offers personal loans to students. As long as you can provide proof of part time or full time study or apprenticeship on application, you can apply for a loan to buy a car to get you to and from uni, or to cover essential student costs such as text books.
- While you will have to provide details of what you want to use the loan for, Bendigo Bank’s student personal loans seem pretty flexible in terms of purpose.
- You can opt for a secured loan or unsecured loan, depending on your needs, and whether you have an asset you can use as collateral.
- You can take advantage of lower rates as a student. Both the secured and unsecured loan for students offers lower rates than the bank’s corresponding everyday personal loans. Opting for a loan with a lower rate can make the loan affordable, allowing you to pay less in interest.
- You can benefit from a fixed rate. If you like to budget carefully, you can rest easy knowing your repayment amount will remain the same each and every month.
- You can borrow as little as $2,000. Bendigo Bank will determine how much you can borrow depending on your income, employment status and credit history.
- You can repay the loan over one to seven years, making repayments either weekly, fortnightly or monthly. This allows you to create a repayment schedule that works for you.
- Despite this being a fixed rate loan, you can make additional repayments whenever it suits you. This could help you chip away at your loan to pay it off faster, with a seriously small early repayment fee to cover should you pay the loan off before the original term.
- Should you need access to those additional repayments at any time, you can withdraw them using the bank’s online redraw facility with no fee to pay.
Why Bendigo Bank?
- It offers a large selection of loans. Thanks to its size, Bendigo Bank can offer a number of different types of loans to suit all types of borrowers.
- It provides flexible options. Instead of being locked into a loan, you can take advantage of Bendigo Bank’s flexible features that allow you to access and repay your loan as it suits you.
- It prides itself on its customer service. Not only does Bendigo Bank offer a quick turnaround on applications, it also offers excellent customer service day to day.
Want to find out more about what a Bendigo Bank personal loan could do for you? Simply click on the loan you are interested in to get the inside info.