Review of Hume Bank Personal Loans: Costs, Fees and Features
How does the Hume Bank personal loan work?
This personal loan can be used to finance a new car, or family vacations, weddings, renovations, debt consolidation or other expenses. The interest rate is fixed, allowing you to easily budget for repayments. The loan also comes with a secured and unsecured option. The interest rate of secured loan is lower than that of unsecured loan.
What are the characteristics of the Hume Bank personal loan?
- Secure and non-secure options. You can choose to secure the loan with the vehicle you purchased or a residential property to fund your personal expenses. Or you can partially secure the loan or opt for the unsecured option. The interest rates for the secured option is lower than that of the unsecured loan.
- Fixed interest. With a fixed rate loan, you know what your monthly repayments will be. Your interest payments will remain constant regardless of the market rate, making it easier to budget for the loan.
- Terms up to 5 years. Loan terms range from 1 year to 5 years.
- Unlimited additional refunds. You can make unlimited additional repayments with this loan.
- Ease of redrawing. You have access to the free and unlimited withdrawal function for your additional payments. You can access it through online banking.
- No prepayment or breakage fees. You will not be charged for making prepayments or paying off your loan before term.
- Flexible repayments. You can make weekly, semi-monthly or monthly payments.
How much does the Hume Bank personal loan cost?
Several fees are associated with this loan. These include in particular the following:
- Principal of the loan.
- Fixed interest of 5.95% per annum (secured) or 9.95% per annum (unsecured).
- $150 application fee.
This loan does not charge monthly or annual account maintenance fees. The comparison rate, which includes interest and fees, is 6.16% per annum for secured or 10.17% per annum for unsecured.
What are the advantages and disadvantages of the Hume Bank personal loan?
- Easy to budget. Your interest payments will remain constant, making it easier to budget for loan repayments.
- Additional refunds and ease of withdrawal. This fixed rate loan allows you to make additional repayments without penalty and to redo those repayments via the unlimited online withdrawal facility.
- No account maintenance fees. You will not be charged monthly or annual fees to maintain your account. This reduces the cost of the loan.
- Short term loan. The maximum loan term is 5 years, which is short compared to similar products in the market.
Am I eligible for the Hume Bank personal loan?
To be eligible for this loan, you must be:
- 18 years or older.
- A citizen or permanent resident of Australia.
How do I apply for the Hume Bank Personal Loan?
You can apply for the loan through its website or over the phone. To apply for the loan, you will need to provide 2 recent payslips, a current statement of your debts, among other documents. You will be contacted within one business day of applying.