Summary

This topic covered Personal Loans.

  • A personal loan is an unsecured funding facility and can be used for almost any purpose.
  • A personal loan to an individual will normally be a regulated credit agreement unless one of the exemptions applies.
  • The minimum and maximum loan amount is determined by the individual lender based on the risk they are prepared to bear.
  • The loan amount can be settled at any time by the customer.
  • No deposit is necessary from the customer, but a fee may be charged by the lender.
  • The loan is paid over a fixed period of time (normally a maximum of 5 years).
  • The customer immediately becomes the legal owner of the vehicle funded by a loan.