Commbank Small Loans: What Are Your Options?

Commonwealth Bank, also known as CommBank, offers personal loans to its customers. These loans can be used for a variety of purposes, including buying a car, consolidating debt, improving one's home, going on vacation, or getting married. CommBank offers both secured and unsecured personal loans, with the former requiring an asset, usually a car, as security. The bank provides flexible repayment options and competitive interest rates, allowing customers to choose a loan that suits their needs and financial situation.

CommBank's small loan types

CommBank offers three types of small personal loans, each with its own unique features and interest rates. These include secured personal loans, unsecured personal loans, and credit cards.

Secured Personal Loans

Secured personal loans are guaranteed by an asset, usually the car you are purchasing. The lender uses your asset as security, meaning they can take possession of it and sell it to cover the loan cost if you fail to make the agreed repayments. The interest rate for a secured personal loan is usually lower than that of an unsecured loan, making the repayments more affordable. CommBank offers secured personal loans ranging from $4,000 to $120,000, with flexible repayment options and terms ranging from one to seven years.

Unsecured Personal Loans

Unsecured personal loans do not require collateral, which may offer more flexibility than secured loans. The application process may be simpler as you don't need to provide details of the asset you are using to secure the loan. CommBank offers unsecured personal loans ranging from $4,000 to $50,000.

Credit Cards

Credit cards can be used as a small loan alternative, providing quick access to funds with flexible repayment options. CommBank offers a range of credit cards with different features and benefits to suit varying financial needs and preferences.

It is important to note that fees and charges may apply to these small loan types, including establishment and servicing fees. Additionally, early repayment fees may apply for fixed-rate loans. It is recommended to get familiar with these fees and charges before applying for any loan product.

Interest rates and fees

CommBank offers both secured and unsecured personal loans, with the former requiring an asset (in this case, the car being purchased) as security. The interest rates and fees for these loans will differ depending on the type of loan, the amount borrowed, and the loan term.

For unsecured personal loans, CommBank offers loans between $4,000 and $50,000. The interest rate on these loans will determine the repayment amount, with the option to make extra repayments without incurring fees.

For secured personal loans, CommBank offers loans from $4,000 to $120,000. These loans typically have lower interest rates than unsecured loans, making the repayments more affordable. The interest rate is calculated daily by multiplying the loan balance by the interest rate and dividing by 365 days, resulting in the daily interest charge. The monthly interest amount is then determined by adding up the daily interest charges for each day of the month.

In addition to interest rates, there are also fees associated with establishing and servicing the loan. For fixed-rate loans, there may be a fee for early repayment, while redraw fees may apply for variable-rate loans. It is important to note that comparison rates provided by CommBank only apply to the given examples, and different amounts and terms will result in different comparison rates.

Eligibility and requirements

CommBank offers unsecured personal loans ranging from $4,000 to $50,000, and secured personal loans ranging from $4,000 to $120,000. The type of loan you choose will determine the interest rate and, consequently, the amount of your repayments.

CommBank offers personal loans to both new and existing customers. The eligibility and requirements for a CommBank personal loan vary depending on the individual's circumstances, such as whether they are a new or existing customer, and the type of loan they are applying for. Here are the general eligibility and requirement guidelines:

• New customers: New customers will need to provide proof of ID, such as a driver's licence or passport. Other accepted forms of ID include a birth certificate, citizenship certificate, or other government-issued ID. If none of these are available, new customers can provide any two of the following: a household bill, marriage certificate, divorce decree, or change of name certificate.
• Existing customers: Existing customers may not need to provide proof of ID if they are logged in and the bank already has their details. However, they may still need to provide certain documents depending on their situation.
• Secured Personal Loan customers: Customers applying for a Secured Personal Loan will need to provide additional documents, such as confirmation of comprehensive car insurance for the vehicle being used as security for the loan. The customer's name must appear on the insurance policy as the policyholder or co-holder, with CommBank listed as the interested party or secured finance provider. If purchasing a car from a dealership, customers will need to provide a tax invoice from the dealership, including the dealership's details, car details, purchase price, and outstanding balance. If purchasing a car privately, customers will need to provide a completed Private Sales Invoice Form, including the seller's details, car details, purchase price, and outstanding balance.
• Visa holders: Those on a visa with no expiry date will need to provide a copy of their Grant Notice. Visa holders with an expiry date must ensure that their visa expiry date is at least one month after the end of their loan term.
• Other requirements: All customers applying for a CommBank personal loan will need to be over 18 years of age and have a good credit score. They should also be aware of the fees and charges associated with the loan, such as establishment fees, servicing fees, and early repayment fees for fixed-rate loans.

Application process

Applying for a small loan from CommBank involves several steps, and the specific application process depends on the type of loan you are seeking. Here is an overview of the application process for personal, home, and business loans offered by CommBank.

Personal Loans

Applying for a personal loan with CommBank can be done online and may be quick and easy if you have the necessary documents on hand. The required documents may vary depending on your individual situation and whether you are a new or existing CommBank customer. For new customers, you will need to provide proof of identification, such as a driver's licence, passport, or proof of age card. If you do not have these documents, you can visit your local branch with any two forms of identification, such as a household bill or bank statement.

If your application is approved, and you receive your salary through a CommBank account, the bank may request proof of income. Additionally, if you have debts with other financial institutions, you may need to provide a recent bank statement or account statement that details your debt repayments or credit limit. For a secured personal loan, you will need to provide confirmation of comprehensive car insurance for the vehicle being used as security.

Home Loans

Applying for a home loan with CommBank also requires providing personal details and information. For a straightforward home loan application, you will need to provide proof of identity, income, and existing debts or liabilities. Similar to personal loans, the required documents depend on whether you are a new or existing CommBank customer. New customers will need to provide photo identification, such as a driver's licence or passport, and proof of address, such as a household bill.

If your salary is not deposited into a CommBank account, you will need to provide additional documentation, such as bank statements for the last three months (or six months if casually employed), your most recent payslip, or an employment contract detailing your wage. You may also be asked to provide a breakdown of your monthly living expenses, including food, transport, and utilities.

Business Loans

When applying for a business loan with CommBank, you may be asked to provide various documents, including financial statements, proof of income, and identification. These documents help the bank understand your business's financial situation. If you are applying for asset finance, you may need to provide additional information. Your financial statements typically consist of a balance sheet and income statement, preferably prepared by an accountant.

General Tips for Loan Applications

To improve your chances of loan approval, it is recommended to manage your finances effectively. This includes paying your bills on time, maintaining a good account history, and demonstrating budgeting and money management skills. Additionally, it is important to consider your expenses and ensure that your income can support the required loan repayments. Checking your credit rating and history is also advisable, as this can impact your loan approval and interest rate.

Repayment options

CommBank offers both secured and unsecured personal loans. For secured personal loans, the repayment period can range from one to seven years. These loans require an asset, typically the car being purchased, as security. If the borrower fails to make the agreed-upon repayments, the lender can take possession of the asset and sell it to cover the loan cost. Unsecured personal loans are also available from CommBank, with borrowing amounts ranging from $4,000 to $50,000.

The interest rate on a CommBank loan will determine the repayment amount. The interest is calculated by multiplying the loan balance by the interest rate and dividing it by 365 days to get the daily interest charge. At the end of the month, these daily interest charges are totalled to get the monthly interest amount. This amount is adjusted for weekly or fortnightly repayments. Making extra repayments can help reduce the interest paid over time, and CommBank allows for this without incurring fees for early repayment.

There are a few fees associated with CommBank loans that borrowers should be aware of. There are establishment and service fees, as well as a fee for early repayment for fixed-rate loans. For secured personal loans, there is also a requirement to have comprehensive car insurance for the vehicle being purchased, with CommBank listed as the interested party or secured finance provider.

Frequently asked questions