Unsecured Loan Limits Increase As Cost Of Living Continues To Bite

Friday, 12 April 2024, 12:23 pm
Press Release: Loansmart

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.

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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