There are hundreds of different financial institutions that offer personal finance in todays market. In addition to the major banks, loan companies and brokers are an increasingly popular choice for borrowers.
Australia’s major banks have recently suffered from bad publicity due to their raising of interest rates in excess of the rise recommended by the Reserve Bank of Australia. This has meant that more and more Australians are now exploring alternative loan options.
While banks and smaller loan companies offer quite similar interest rates on personal loans, banks have always had an added sense of security not available with other lenders, explaining their consistent popularity. However, the National Credit Code which was recently introduced by the federal government means that all lenders are now governed by the same legislation, and must offer similar rules and protection practices for all.