Life throws curveballs. Sometimes, those curveballs demand a financial solution bigger than your savings account. Thankfully, a personal loan can be your trusted sidekick, helping you tackle unexpected expenses to be prepared for whatever lemon life throws at you.

But navigating the world of personal loans can feel like you’re deciphering an ancient text. Interest rates? Repayment terms? Prequalified vs. approved? It’s enough to make your head spin.

That’s where National Finance’s personal loan expertise comes in. Learn more about navigating personal loans and how you can apply for one in this blog, from acing the application to repaying it like a pro.

Assess if you need a personal loan.

Personal loans are no easy river to cross, so knowing where you’re headed matters.

These loans offer a lump sum to tackle larger expenses, from car purchases to home renovations, debt consolidation to dream vacations. However, the key is clarifying your exact borrowing needs.

Is getting a personal loan the answer to your financial needs? You could opt for opt for a personal loan from the banks, you need to make sure you have at least a hole day to line up, and your approval will take months. You could consider the growing trend of informal finance known as loan sharking. However, interest rates for these types of credit can be high and challenging to repay.

If a personal loan satisfies your financial needs, you must think about your borrowing power. It determines your ability to get a loan, such as credit score, income, and expenses.

Check your personal loan eligibility

Have you given taking a personal loan much thought? Then, you can proceed now to know if you’re eligible to get one.

Most financing lenders, including us at National Finance, require personal loan applicants to be:

• At least 18 years of age
• A Papua New Guinean citizen or permanent resident, or hold a visa if not a resident or a migrant
• Employed by an approved employer
• Be able to repay debt in accordance with National Finance lending assessment

(CDB) Credit Bureau Data

CDB in Papua New Guinea records your credit history and previous lending conduct. The Credit Bureau Data displays your ability to pay loans on time, credit accounts, and past defaults. It assesses how financially responsible you are. Generally, the less adverse findings, the better the chances of your application being approved, along with more favourable borrowing terms.

Unsecured loans

These involve no collateral, making them easier to apply for. But beware, the lack of security for lenders translates to higher interest rates and stricter approval criteria.

Get an estimated interest rate

Many lenders offer loan calculators – estimated interest rates based on your basic information of your loan terms. These are called soft enquiries, meaning they don’t impact your credit score and aren’t seen by other lenders.

Why use the loan calculator first?

• Compare rates and terms. Get personalised offers from multiple lenders to find the best fit for your budget.
• Estimate repayments. Understand how payments might affect your finances before committing.
• No obligation. Pre-assessment doesn’t lock you into a full application.

Remember, pre-assessment isn’t a guarantee of loan approval, and a formal credit check will still be required later.

Shop around for the best offers.

Now that you’ve confirmed your eligibility and estimated interest rates, it’s time to shop around!

Comparing loans from different lenders helps you snag the best deal for your needs. Here’s what to remember:

• Fees inclusive. Don’t just compare interest rates. Look for hidden fees like application, monthly service, and late payment charges. Some lenders offer fewer types of fees, but the individual charges might be higher.
• Comparison rate. The comparison rate aims to showcase the true cost of a loan, including interest and major fees. While helpful, remember to check the fine print to understand the calculations behind the comparison rate.
• Loan term. A longer loan term means lower monthly payments, but you’ll pay more interest in the long run. Choose a term that balances affordability with total cost.
• Purpose check. Some loans have restrictions on how you can use the funds. Ensure the loan aligns with your intended purpose, whether it’s a car purchase, renovation, or debt consolidation.

Comparison websites can be helpful but remember, they might not cover all options and may earn commissions for recommendations. Do your research independently to ensure a complete picture.

Ready for your personal loan application?

Are you now ready to find the best financial lender for your personal financial needs? Contact our expert team of personal loan professionals at National Finance PNG. Whether you are facing imminent school fees, unexpected medical bills, need funds to purchase a reliable work vehicle or just replace a fridge or washing machine, National Finance are on call to help navigate your finances. Contact us today.