How Does a Better Start Personal Loan Work?

With a Latitude Better Start Personal Loan you pay no interest and no repayments for the first three months of your loan term. You’ll also have a fixed interest rate for the life of your loan.

Put your feet up to take a breather in the first three months of your loan, or start paying it back to save on interest – the choice is yours.

If you’ve ever had a few debts, coming from a few different places, you can imagine what it might be like to manage all those repayments at once. Bit stressful? Overwhelming? Or, you might relish the challenge.

To combat that feeling of being overwhelmed or to simply streamline your finances, a debt consolidation loan could be the answer for you. You’ll have one easy-to-manage payment, rather than juggling several. We’ll reach out to your credit providers directly to repay the debts, so you don’t have to go through the hassle yourself.

So, has this handy new offer piqued your interest? Is it for you? We’ve explained it below, and here as well.

Who’s eligible?

If you’re a new Personal Loan customer at Latitude, and apply for a debt consolidation loan of $20,000 or more, you may be eligible.

What happens in the first three months?

In the first three months of your loan term, you’re not required to make any repayments and no interest is charged.

But, stay with us, you may choose to make repayments within the first three months and this will reduce the amount of interest you pay overall.

No repayments and no interest – now you’re talking!

So, when do I make my first repayment?

You don’t need to pay any repayments or pay interest in the first three months. The first repayment is due and interest charges will start after the three month, no payment, no interest period.

Seems like a long time, right? Don’t be alarmed, we’ll send you email and SMS reminders, so you’ll know when your first repayment due date is coming up.

How a better start personal loan works infographic

What happens to the loan term?

It gets longer. No seriously, you’ll get the three-month breather (if you choose to) and that will then extend your loan term by three months on the tail end. For example, a three-year loan term will become three years and three months’ long.

What about fees?

No fees for the first three months, that includes account keeping fees. If you elect to make an optional payment(s) in the first three months using BPAY® or Australia Post, a payment handling fee applies. You also won’t pay any interest for the first three months.

Now that is a breath of fresh air.

How the debt consolidation process works infographic

What if I pay my loan back super quickly?

Firstly; great job. Secondly; there may be a fee if you pay back your loan super quickly. Here’s how it works:

  • $300 Early Termination Fee (ETF) if you pay your loan off within the first half of your loan term. For example, halfway through a three-year loan term would be 29.5 months, to account for the additional three months in length;
  • $0 within the second half of your loan term.

Check your calculations with our personal loan repayment calculator – you may still save on interest and repayments by paying it off quickly.

How can I manage my loan?

Short answer: easily. Long answer: by using a few different channels. You have the choice of the below:

  • The Latitude App: view your balance, due date, repayment amount, and more;
  • We’ll send you a statement every 6 months;
  • Contacting our call centre on 13 28 26.

If you’re interested in a Latitude Better Start Personal Loan, you can apply now or find out more here.