Bulls raging over the colour red, eight glasses of water a day, goldfish with 3-second memories – what do they all have in common? They're myths, and they've been busted.
Sure, we might not know much about bulls or fish, but we're taking on some myths of our own, specifically: common misconceptions about personal loans, and busting them. We're taking on these myth-conceptions one by one, to help you discover how personal loans can be an effective tool to help you grow your business in ways that are easier than you might think.
"Personal loans don't add value to your business"
Personal loans are a great way to help clients access additional funds for things like home renovations without having to extend their mortgage.
By using a personal loan instead extending their mortgage, your clients could save thousands over the life of their loan, even if their personal loan interest rate is higher than that of their mortgage.
"Personal loans are more expensive"
While rates on personal loans might look more expensive than mortgage rates, based on monthly repayment amounts, it’s not always quite that simple.
Because of interest costs over an extended period of time, a mortgage extension can often end up costing your client more in the long run than a personal loan would, even if the personal loan carries a higher interest rate and a higher monthly repayment during the term.
For example, at today's rates of around 5% p.a. for a mortgage, a $50,000 extension would cost around $50,000 over the 30-year term. Compare that to a $50,000 personal loan with a 5-year term at 8.99% p.a. – the total cost would land around $13,442*. That's no small difference!
"Personal loans are too hard and time-consuming"
Personal loans are a useful tool that can help you build your business and your clients renovate their homes – and with less effort than you might've thought.
A personal loan application can be completed in just 10 minutes, and can earn you valuable commission with minimal effort and minimal time commitment. If you’re not writing personal loans for your clients, you could be missing out on valuable income.
"My clients don't need personal loans"
Personal loans are used by a wide variety of borrowers, and are flexible enough to be used for almost anything. In fact, most Plenti personal loan borrowers work full time, and more than half are homeowners. That means, that if you’re not in the business of writing personal loans, you could be missing out.