The CUA Variable Rate Personal Loan
This personal loan from CUA allows you to borrow $5,000 to $60,000 with no monthly fees and a variable rate of interest, to cover almost anything you’re looking to purchase.
What we love...
The first thing to note on the CUA Variable Rate Personal Loan is its interest rate. Firstly, this is a variable rate personal loan, which means the rate applied may go up or down according to the market. Obviously, if rates fall – and CUA passes on those rate decreases to you – your loan repayment will fall as well, so you pay less back overall.
However, another interesting point to note on this loan is the different rates of interest applied to different loan amounts. Loans ranging between $30,000 and $60,000 have a slightly lower rate than loans between $5,000 and $30,000. If you need to borrow an amount in the higher ranges, it could help you save on interest with that lower rate.
Now to the flexibility of the loan. Happily, CUA offers plenty of flexible features on its Variable Rate Personal Loan. You can choose a loan period of one to seven years, with repayments made weekly, fortnightly or monthly. This allows you to choose a loan that suits your budget, paying off as much as you can, as quickly as you can to reduce the amount you pay in interest overall.
Talking of paying off your loan quicker, this loan allows for that with no penalty. You can make extra repayments with no fee, and you can pay off your loan early – again, with no fee. If you do make extra repayments on your loan, you can access them when you like with the loan’s handy redraw feature.
What’s not so great...
As we mentioned, as a variable rate loan, its rates may rise and fall with the market. That means you will need to make sure you can afford your repayments if your rate rises. Also worth taking into account is the loan’s establishment fee. While many personal loans charge this fee, it is nice to see CUA doesn’t charge an ongoing monthly fee alongside it.