Secured loans
What are they?
A secured personal loan is a loan guaranteed by an asset such as a car. The bank uses this asset as security, which means if you are not able to make the agreed repayments, the lender can take possession of the asset and sell it to cover the loan.
Kina Secured Personal Loans
A Kina Secured Personal Loan is different to a Credit Card in that you offers a single payment from us for the approved amount into your bank account. The money then needs to be used to make the purchase that was detailed in your application. Once you receive the funds, you will start making repayments which can be either fortnightly or monthly.
With a Kina Secured Personal Loan, you may borrow from PGK 1,000 to PGK 50,000. Repayment terms range from 6 months to a maximum of 5 years with repayments either fortnightly or monthly. The good thing about our secured loans is they are fixed at an interest rate of 20% p.a. so your repayment amount will not change, making it easier to plan ahead.
Repayments
The repayment consist of the principal and interest. If you are employed, the repayments will come directly from the account that your salary is paid into. If you’re self-employed, the repayments will be taken from your primary transaction account.
Interested in our secured loans? Find out more here.
Show them how opportunity cost works
As your child gets older, they’ll become better at weighing decisions and understanding different outcomes. Help them understand the value of their current savings by comparing the cost of one item to another. For example, if your child wants to buy a bag of lollies, let them know they may not have enough money to buy a plush toy. This teachable moment will help with saving later in life.
Unsecured loans
What are they?
Unlike a secured loan that sees your assets being used as security by the bank, an unsecured loan is not secured against an asset like your car or your property. An unsecured loan can be used for a range of things including a holiday, wedding or medical expenses to name a few.
Kina Unsecured Personal Loans
A Kina Unsecured Personal Loan gives you access to funds for a fixed term.
You can borrow from PGK 1,000 to PGK 75,000 with servicing requirements being 30% of your gross salary or less, and 30% of net cash flow or less if you are self-employed.
Repayments
Repayments are at a fixed rate of 26% p.a, meaning your payments are set and you know exactly how much is going to the loan each time. There’s also a fixed set up fee of PGK 300 which is payable once the loan is approved.
Interested in our unsecured loans? Find out more here.
Motor vehicle loans
What is this?
A motor vehicle loan is a loan specifically taken out to cover the cost of a vehicle purchase.
Kina Motor Vehicle Loan
With the Kina Motor Vehicle Loan, you can borrow as little as PGK 20,000 through to an uncapped amount based on your ability to replay the amount borrowed. The minimum term for a Kina Motor Vehicle Loan is 1 year.
Our set up fee is a fixed fee of just PGK 500. The amount is payable once the loan is approved, there is also an ongoing fee of PGK10 per month.
With a fixed rate of just 18% p.a and the ability to make payments either fortnightly or monthly, your repayment amount will remain the same so you can plan ahead.
Interested in our motor vehicle loans? Find out more here.
Tips for managing repayments
Taking out a loan can be a big financial commitment, luckily there’s lots of ways to help you manage your repayments more effectively.
Create a budget
Your first step is to set a budget that looks at your monthly or fortnightly repayments as well as your other mandatory expenses. Having a clear view of where your money is going will help you identify other incidental expenses and cut down your spending to remain on top of your repayments.
Set up direct debits
One of the best ways to stay on top of your repayments is to have automatic direct debits set up. This way, as long as there are sufficient funds in your account, you will not miss a repayment and incur any penalty interest on the overdue amount.
Consolidate your loans
The more loans you take out, the more difficult you may find to keep up with your repayments. To help, you can combine your loans into one, using debt consolidation. Taking a debt consolidation loan will cover all your ongoing loans in one; you now only pay your debt consolidation loan.
While debt consolidation can make repayments less complex, only do this if the interest rate on this loan is lower than the combined interest on your other loans, and you have a good credit score and a low debt to income ratio.
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