The National Australia Bank Revolutionises Personal Loans - 25 July 2005
Monday, 25 July 2005
The National Australia Bank (NAB) has launched an Australian first-to-market product that is tipped to revolutionise the way people finance 'life event' projects - such as getting married, having a baby or renovating a house.
Available for amounts of $5,000 to $35,000, NAB 's Personal Project Loans (Personal Project Loan and Personal Project Loan Direct) give customers flexible access to an approved loan amount using a Visa Card, NAB Telephone Banking or National Internet Banking over a 90-day period.
This means customers have 90 days starting from when the account is opened, to buy big ticket items with minimum purchase amounts of $500. For the Personal Project Loan purchases are interest free during the 90 days. Customers can then pay off the borrowed amount via structured repayments over a period of up to seven years.
A variation on the Personal Project Loan, the Personal Project Loan Direct, is also available to customers who prefer a no frills, lower cost option. This has all the features of a Personal Project Loan, except it has a lower interest rate instead of an interest-free period, and can only be applied for online and over the phone.
General Manager Cards and Personal Loans at NAB, Mr Andrew Maitland, says the Personal Project Loans are perfect for an event such as a wedding, when you have to make a variety of purchases over a defined period.
"Customers told us they want a product that gives them the flexibility to access funds easily and the convenience of planned repayments over time, to help keep them on track," Mr Maitland said.
"The approved amount gives people control of their budget and the structured repayments mean there is an end point for paying off the loan. And if customers spend less than the amount budgeted, they only pay interest on the money they've spent."
Mr Maitland says the Personal Project Loans will benefit people facing life decisions like moving out of home, getting married or starting a family.
"The Personal Project Loan combines all the great elements of regular personal loans, such as low interest rates and structured repayments, with the positive benefits of a Visa Card, letting you make multiple purchases in-store, online, or over the phone,” Mr Maitland said.
For more information about the National Personal Project Loan, call 13 13 12 between 8am and 9pm EST, Monday to Friday.
Please refer to the table on the next page for key features of National Personal Project Loans.
Key features of National Personal Project Loans
| Personal Project Loan | Personal Project Loan Direct | |||||||
| Interest type | Variable | Variable | ||||||
| Payment access period* | 90 days | 90 days | ||||||
| Interest free period* | 90 days# | 0 days (no interest free days) | ||||||
| Interest rates |
|
$10,000 - $19,000 12.00% $20,000 - $35,000 11.40% |
||||||
| Credit Limit | $5,000 - $35,000 | $10,000 - $35,000 | ||||||
| Minimum transaction amount ($20 fee for transactions under $500) |
$500 | $500 | ||||||
| Structured repayments | Yes | Yes | ||||||
| Repayment frequency | Monthly | Monthly | ||||||
| Early repayment without penalty | Yes | Yes | ||||||
| Access to funds | Visa merchants Internet Banking Telephone Banking National branches |
Visa merchants Internet Banking Telephone Banking |
||||||
| Application method | nab.com.au, 13 13 12 or National branches |
nab.com.au and 13 13 12 |
||||||
| Application fee | $100 | $100 | ||||||
| Monthly service fee | $5 | $5 | ||||||
| Repayment period of Up to 7 Years | Up to 7 years | Up to 7 years |
*Beginning the date your account is open.
#For purchases only (balance transfers attract an introductory interest rate)
Please note: Information is current as at July 2005 and is subject to change. Applications for National Personal Project Loan and National Personal Project Loan Direct are subject to the National's standard credit assessment criteria.
For further information, please contact:
Mikala Sabin, Corporate Affairs, National Australia Bank
Phone: 03 8634 1572 Mobile: 0404 863 976
* The information contained in this media release is for media advice purposes only. The contents are true and correct at time of publishing/issuing, however may change over time. For further information about NAB products or rates, please go to Interest Rates, Fees & Charges
