Media Release: New Zealand’s best value personal loan lenders revealed

Along with its 2019 Star Ratings Report identifying lenders offering outstanding value to borrowers, canstar.co.nz releases research showing New Zealanders can save thousands by consolidating debt.

Boutique and non-bank lenders again stood out in this year’s canstar.co.nz’s car and personal loan star ratings. Of the 11 providers assessed, four emerged as providing outstanding value for borrowers. Lending Crowd, NZCU Baywide, Harmoney NZ and The Co-operative Bank were rated by Canstar analysts as providing the best overall value to consumers.

Canstar New Zealand general manager, Jose George said along with competitive pricing, canstar.co.nz’s 5-star products offered features that made the borrowing process simpler and easier to understand for borrowers.

Recent research from canstar.co.nz found using personal loans to consolidate consumer debt such as credit and store card balances or a bank overdraft will not only make managing debt simpler, but it can also save Kiwis thousands of dollars per year in interest. The research shows that $10,000 debt refinanced from a credit card at 20.95% interest to a five-year personal loan at 8.29% interest will save approximately $3,770 over the term of the loan. Moving a $10,000 debt from an overdraft at 19.95% to a personal loan at 8.29% will save approximately $3,450.

George says all New Zealanders know paying down debt is the best way to get into a good financial position, but many don’t know how, and are stuck in high-interest vehicles that can result in higher levels of debt year-on-year.

“Quite simply, using the right products to pay off debt can save you thousands of dollars,” says George. “The bigger the debt, the more important it is to find a product that allows you to pay it off as quickly, and as cost-efficiently as possible.”

Full results of the canstar.co.nz car and personal loans ratings can be found here.

A $10,000 personal loan compared with credit card and bank overdraft over a 5-year term

Rate Application fee Monthly payment Total cost
Personal loan (good credit) 8.29% $242 $204.15 $12,491.28
Standard bank credit card 20.95% $48.81 $270.25 $16,263.95
Bank overdraft 19.95% $61 $264.66 $15,940.64

 

Winners 2019 canstar.co.nz Personal Loans Star Ratings:

Outstanding Value – Car Loan/Secured Personal Loan

This recognition goes to car loan or secured personal loan lenders that
provided outstanding value on secured loan products for the purposes of
purchasing a car. A total of 33 five-year term loan products offering $20,000
and over across 11 providers were rated. To determine the rating, Canstar
compared pricing (80% weighting) and features (20% weighting) offered by the
products.
The winners, in alphabetical order, are:

  • Harmoney NZ – Unsecured PL A-1-A5 Credit Rating
  • Lending Crowd – Secured Personal Loan A1 – 5 year fixed
  • NZCU Baywide – Secured Personal Loan – Orange
  • The Co-Operative Bank – Personal Loan Unsecured A++ to A Credit

Outstanding Value – Unsecured Personal Loan
This recognition goes to unsecured personal loan providers that provide
outstanding value on loan products for the purposes of debt consolidation or
holidays. A total of 23 three-year term loan products offering $10,000 and
over across 10 providers were rated. To determine the rating, Canstar
compared pricing (80% weighting) and features (20% weighting) offered by the
products. The winners, in alphabetical order, are:

  • Harmoney NZ – Unsecured PL A1-A5 Credit Rating
  • NZCU Baywide – Unsecured Personal Loan – Orange
  • The Co-Operative Bank – Personal Loan Unsecured A++ to A Credit

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