Kiwis now have access to higher borrowing limits on unsecured
loans.
Loansmart is increasing its limit on
unsecured borrowing from $50,000 to $75,000.
Managing
Director Murray Greig says the increase is in response to a
rise
in demand for personal loans on the back of the ongoing
cost of living crisis.
“Our increase in loan limits
also acknowledges that things cost a lot more than they did
a few years ago.
“Things like building costs and
travel have risen dramatically, but our unsecured lending
limits were the same.
“This move brings us in line
with what Kiwis are facing at the moment, and allows us to
continue to help them achieve their goals.”
Most of
Loansmart’s lending is unsecured, meaning there is no
collateral taken out against the loan.
This type of
loan is popular with people needing to borrow smaller
amounts, or who need cash in a hurry.
Unsecured loans
are fast to approve because there is no need to check things
like the value of assets being put up as
collateral.
There are still many finance
companies and banks offering unsecured personal loans with
limits up to $50,000, so Loansmart’s higher lending limit
provides customers with much-needed
relief.
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According to Murray Greig, as
more of people’s incomes go to living expenses, they find it
harder to save for car purchases, holidays, and home
improvements.
“Even if they manage to save a decent
amount, they will find that the cost of those things has
gone up and may still be too expensive.
“Since
inflation has increased the price of almost everything, it’s
a good time for us to adjust our unsecured lending
limits.”
Latest statistics show average household
spending in June 2023 was nearly
$1600 per week, more than 18% compared with four years
earlier.
Spending on food alone has increased nearly
30%, while health care costs have increased
18%.
Homeowners are particularly feeling the pinch, as
many have seen
their interest rates jump from less than 3% to more than
7% in a relatively short period of time.
Due to this,
many homeowners are left with very little disposable income
and must choose between going without or finding other
sources of funding.
About
Loansmart
As a trusted finance broker,
Loansmart provides loans to consumers all across New
Zealand.
For 15 years it has arranged lending for its
customers with low cost loan providers offering interest
rates between 9.95% to 29.95%.
As an online-online
provider, Loansmart aims to make borrowing easy with its
quick and easy application process, same-day approval
(subject to responsible lending criteria), and fair
rates.
Its tagline – “We jump through hoops so you
don’t have to!” – exemplifies its mission to take the
hassle out of getting a loan.
For more information
about Loansmart please visit https://loansmart.co.nz/.
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