Interest rates on unsecured interest only loans/overdraft facilities

[TPI]

Hi,
Anyone know what is the lowest interest rate that one could get on an unsecured interest only loan or overdraft facility?
Most I have seen are 11-13%+.
Is it possible to get 7-8% on such loans, say for a 100k loan?
Thanks.

 

[tobe]

its dificult to get unsecured finance past about $30 or $50k usually, so there isnt much competition to lower the interest rate if you do manage to get finance. Perhaps give us some more information so we can comment further. is, are you self employed? what is the purpose of the funds etc.

 

[Paul@PFI]

Unsecured $100K loan ??? LOL. Larger unsecured loans from banks are usually made to existing customers with other assets and bank security on other assets the bank holds. ie almost an unregistered mortgage. Unsecured loans are often capped around $40K....or think credit card limits. Serviceability based on personal income etc. Takes a good income to get a $100k card limit. Or a Amex black (Centurion Card) without any limit. However you cant apply for that - Its invite only and the annual spend is hefty. So is the application fee + annual fee.

One form of unsecured loan can be invoice financing. The receivables are counted as an asset and a floating charge given. Typically only a business can get this form of finance.

Otherwise, bikies maybe ?? 10% in cash per month + your left nut.

 

[Brady]

Purpose of the funds it critical to unsecured funds especially with lower rates.

Old man works for ANZ in agri business, was telling me last week that there clients are able to borrow up to ~$500k unsecured @ ~6-7% pretty easily.

 

[Paul@PFI]

I used to work in a major bank Treasury and was involved in capital / risk adequacy. Agri is a weird science. Its not quite what its portrayed.

They have your balls in the bottom draw of the mortgage area. They lend against crops etc unsecured. There is still a fixed & floating charge there plus deeds to the farm. If crops fail they still got the land.

 

[TPI]

Thanks for the replies.

I already have a 100k facility that I've never used at a fraction under 10% interest, I'm just investigating how much lower I can get this interest rate down to.

If it can somehow get to 7-8% then it may become useful as a small alternative source of finance for longer-term investments.

 

[Rolf Latham]

Purpose of the funds it critical to unsecured funds especially with lower rates.

Old man works for ANZ in agri business, was telling me last week that there clients are able to borrow up to ~$500k unsecured @ ~6-7% pretty easily.

ANZ are quite good with cashflow lending across the board...........but "unsecured" ..........that isnt in my experience, They will lend without bricks and mortar, but do have intrinsic security in direct control over the income producing asset

ta
rolf

 

[Colin Rice]

Good for two years @ 5.9% up to 60k and relatively easy to attain I've heard, but once past the two year mark you get slammed.

http://www.citibank.com.au/aus/lending/loans_readycredit.htm

Disclaimer: Read the T&C before proceeding.

 

[TPI]

Good for two years @ 5.9% up to 60k and relatively easy to attain I've heard, but once past the two year mark you get slammed.

http://www.citibank.com.au/aus/lending/loans_readycredit.htm

Disclaimer: Read the T&C before proceeding.

Thanks Colin, this product is not too bad actually, you can get up to 48k (80% of 60k as per the T&Cs) without doing a balance transfer at 5.9% for 2 years, after which of course the interest rate jacks up to 19%+.

But not a bad interest rate for unsecured finance for 2 years.

 

[danwatto]

I saw ads for that and was tempted good deposit. But will negatively affect borrowing capacity.

If not paid off in 2 years.. Ouch. Ok if it's something short term.