bank australia low rate personal loans
TRANSCRIPT
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Low rate personal loansPresented by Jason Beale
March 2016
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Introduction - Looking for a personal loan
• Is the interest rate competitive?•What are the fees and charges?• Is there flexibility with loan repayments?•What is the service like?•What are the bank’s values?
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Content
•Who is Bank Australia?• The Big Four Banks vs. Bank Australia• Example loan calculation• Benefits of a personal loan from Bank Australia
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Who is Bank Australia?
• Operating since 1957
• In 2011 mecu (Members and Education Credit Union)
became Australia's first (and largest) mutual bank
• Mutual banks are customer-owned banks that reinvest their
earnings into better rates and services for their members
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Who is Bank Australia?
• In 2011 mecu (Members and Education Credit Union)
became Australia's first (and largest) mutual bank
• Mutual banks are customer-owned banks that reinvest
their earnings into better rates and services for their
members
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• In 2015 the bank’s name changed to Bank Australia
• Known for its conservative, responsible approach to
banking
• Committed to values-based business practices that
promote positive environmental, social, and economic
outcomes
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The Big Four banks
Personal loaninterest rates
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Bank Australia
Personal loaninterest rates
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Example loan calculation
• Jack is a hip young
hairdresser with a
steady job who
usually catches the
train to work
• He wants to buy a
motorcycle so he can
ride to work instead
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Example loan calculation
• Jack is also
concerned about
the environment
• So he decides to
buy an all electric
Zero FX 5.7
• It sells for $18,990
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Loan calculationTo determine the fixed payments and total interest we need
• Amount borrowed (Principal) • Interest rate• Repayment frequency (Weekly, Fortnightly, Monthly)• Length of the loan (Term)• Additional fees and charges
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Loan calculationBank of Australia personal loan
• Amount borrowed (Principal) = $18,990• Interest rate = 12.39%• Repayment frequency = Weekly• Length of the loan (Term) = 5 years• Additional fees and charges = no fees
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Loan calculationNational Australia BankMonthly fees ($10 p/m over 5 years) 600Interest (26,249-18,990) 7,259TOTAL COST $ 7,859
Bank AustraliaEstablishment fee 150Interest (25,498-18,990) 6,508TOTAL COST $ 6,658 YOU SAVE $ 1,201
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Loan calculationNational Australia Bank
Monthly fees ($10 pm over 5 years) 600Interest (26,294-18,990) 7,259 TOTAL COST $ 7,859
Bank Australia (Home Owner Rate)
Establishment fee 150Interest (23,266-18,990) 4,276TOTAL COST $ 4,426 YOU SAVE $ 3,433
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Benefits of Bank Australia’s Personal Loan
• Lower interest rates
• No monthly fee
• Discounted rates for home owners
• Flexible repayments
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Benefits of Bank Australia’s Personal Loan
• Not-for-profit, customer-owned bank
• Committed to sustainability and community development
• Personal service at six branches across Melbourne
(CBD, Fitzroy, Kew, Mt Waverley, Taylors Lakes, Ringwood)
and at 11 branches across country Victoria
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Other things to consider
• Bank Australia has a conservative lending policy
• Be ready for a detailed financial assessment
• And a careful application process
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FAQs
• What are the fees and charges?Establishment fee is $150, waived where loan is for sustainable home improvements. No monthly fees.
• What is the minimum loan amount?
$1,000
• What terms are available?
Minimum: 1 year. Maximum: 10 years
• How often can I make repayments?
Weekly, Fortnightly or Monthly
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FAQs• Can I make extra repayments?
Yes, plus redraw facility if you are a home owner
• Do I need security for the loan?
Unsecured loans possible up to $20,000 or $30,000
• Is the interest rate fixed or variable?
Variable interest rates apply
• Can I pay out the loan early?
Yes. There is no penalty for early repayment
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Question Time
https://bankaust.com.au