A New Heading toward a New Horizon
It’s been a very unique start to the ‘20s decade. Unprecedented many say.
However, opportunities have arisen to allow Australians all over to access money in new and smarter ways.
Australian GDP and the future: Snapshot
Consumer behaviour, in many areas, has bucked the downward trend forecast in the wake of the pandemic, with household incomes and average monthly savings increasing considerably over the past 12 months.
With an average household income of $118,000 and an aggregate happiness index of 84%, optimism for a positive financial future is encouraging. And with it the notion that Australian’s are better poised to capitalise by investing in the future. And with it the notion that Australian’s are better poised to capitalise by investing in the future.
Find more statistics at Statista
The Universal Adoption of ‘The New Normal’
Without the redundant and painfully obvious reminder that a global pandemic has turned the world on its head, the concept of ‘the New Normal’ applies to more than just community hygiene and a decentralised workforce.
The Reserve Bank has repeatedly slashed cash interest rates to reduce pressure on the lending to allow businesses the room to navigate the perils of COVID-19 with enhanced cash flow. A trend that may continue for some time.
The trajectory of businesses digital transforming their sales and customer relationships is in overdrive. In a bid to reach customers directly. In a new, decentralised digital world.
And we’re yet to see how Australians as a whole, will evolve the way we all consume and purchase.
Everything has changed.
What We Know, What We’re Expecting
From the outset of the 2021-2022 financial year, the lending market has seen a rapid increase in engagement within the digital space. Specifically online loan inquiries.
Globally, the number of small and medium-sized enterprises (SMEs) is flourishing and therefore driving up demand for consumer and business loans under six-figure amounts. Start-up costs, initial overheads, and a need to increase cash flow are some of the main factors driving this upward trend despite the wider impact COVID-19 is having on the business landscape.
Additionally, with the majority of Australian’s having spent most of the past two calendar years in lockdown, personal projects such as home renovations, landscape and pool installations as well as consolidating existing debts and budgeting have dominated demand for personal loans. These are just a few examples of where lending has responded as the smart solution.
With average personal loan interest rates at all-time record lows, and a new breed of non-bank lenders now rewarding customers with strong credit history lower interest rates, , there has never been a better time to access affordable finance for small and medium-sized loans.
Advantages of personal loans for borrowers in the new Australian market:
Higher Credit Score Means Lower Interest Rate.
Your credit score is a leading indicator for lenders on your historical repayment performance and the likelihood of you repaying a loan. These credit scores are made available to lenders by credit bureaus such as Equifax, Illion and Experian. Having a good credit score may mean you will be rewarded with a lower interest rate. Competitive interest rates paired with the additional benefits of having no early exit fees or penalties for paying the loan off early, puts borrowers in control of their finances.
Personal Loans Are Increasingly Accessible.
Lenders are increasingly accessible with online-enabled pre-approvals that don’t affect your credit score. Embedded loan calculators and free quotes mean you can gain a sense of the affordability of the loan and whether it is suitable for you.
Many Loan Lending Apps Use Soft Credit Score Inquiries To Protect Your Score.
Many non-bank lenders are able to use online tools such as an online portal to ask for basic information such as average income and geolocation and pre-emptively weigh the lending risk using a combination of their own repayment data and industry data made available by credit bureaus. What this means is that you can have your request considered by a lender without the lender needing to make formal inquiries into your credit score, which would have a negative impact on your score.
Using online quoting, lenders and borrowers can gain the knowledge needed to safely access funds whilst avoiding any negative impact.
Small to Medium Size Personal Loans for Big Dreams
With future consumer confidence and supporting financial indicators, the ability to access credit has never been stronger for Australian’s. Whether your looking to complete some home renovations, plan a wedding, purchase a car, or just need additional funds, the ability to access credit on your terms as never been greater, and simpler than you might think.
So if you’re in need of a small to medium size loan to kick start your next big idea or make your latest dream a reality, head over to our inquiry page and get started.