In New Zealand, personal loans have evolved into an accessible and streamlined finance solution. Gone are the days of visiting a bank branch in person. Thanks to modern technology, you can now apply for a personal loan from the comfort of your home, using your computer, tablet, or mobile phone.

1. Prepare the Essentials: Information and Documents

Before you start your personal loan research, gather the essential documents you know you’ll need for an application:

Your photo ID (like a NZ driver’s licence or passport).
Your income and expenses (include pay slips or download bank transaction history for the previous 2 to 3 months to create a realistic budget).
Details of any existing debts (e.g. credit cards, hire purchases, Buy Now Pay Later).
Banking access to securely submit your information (modern online lenders often use tools like Credit Sense to verify banking data without compromising your login credentials).

Having this information ready ensures your application process is fast and simple, and you’re more likely to receive accurate personal loan quotes.

2. Check Your Credit History

Your credit record plays a big part in a lender’s decision-making:

A solid credit history signals financial responsibility, improving your chances of securing an affordable unsecured loan.
Missed payments, defaults, or new credit enquiries may impact your options.
In NZ, you can check your credit score through agencies like Centrix, Equifax, or Illion—without damaging it.

Assessing your credit score early on helps you plan, and perhaps improve affordability before diving into a personal loan application.

3. Understand What a Personal Loan Is and What “Unsecured Loans” Are

A personal loan, especially an unsecured loan, doesn’t require collateral like a car or home. Instead, approval is based on your creditworthiness and ability to repay.

Nectar Money offers unsecured personal loans from between $2,000 up to $40,000, depending on your personal circumstances.

This flexibility makes personal loans versatile for many uses, such as covering unexpected costs, consolidating debt, or funding a meaningful purchase.

4. Assess Affordability: Can I Afford a Personal Loan?

Before applying, it’s crucial to analyse your finances:

Use a loan repayment calculator to estimate repayment amounts based on different terms.
Understand how much disposable income you have. Do not rely on future windfalls to make repayments.
Ideally, plan for worst-case scenarios like a delay in income or a sudden bill.

Budget carefully and factor in loan repayments alongside other household expenses to assess if a personal loan is genuinely affordable for your circumstances.

5. Shop Around for the Best Personal Loan (Interest Rates and Terms)

To get the best value:

Compare interest rates, loan terms, and any additional fees like establishment or admin charges.
Look for fixed interest rates as they make budgeting easier by knowing exactly what you’ll pay each installment.
Check that there are no early repayment penalties, which allow you to pay off your loan faster if you can.

Interest rates for unsecured personal loans typically range from ~12% to 30% p.a. depending on creditworthiness and loan size.

6. Apply For A Personal Loan: Fast, Secure, and Fully Online

Applying for a personal loan should now be simple:

With everything you need to hand, apply online. Most online loan applications can be completed in a matter of minutes.
The best lenders provide personalised loan quotes immediately, detailing your interest rate, repayment schedule, and maximum borrowing amount.
If approved, the best personal loan providers allow you to electronically sign the loan contract and receive funds on the same day.

7. Confirm You’re Ready and That the Loan Works for You

Before finalising the personal loan application, read it through carefully and confirm:

That the loan fits your purpose (e.g. debt consolidation, home improvement, emergency expenses).
That the loan works within your household budget.
You’re comfortable with the agreed interest rate and repayment structure.

You’ll also want to assess the benefits, like paying off high-interest credit cards with a lower-rate personal loan, simplifying multiple repayments and potentially saving money.

8. Post-Approval: Managing the Loan Responsibly

Once your loan is active:

Stay on top of repayments. Making timely payments will help improve your credit score over time.
If you receive extra money (e.g., a work bonus), consider making extra repayments. Many NZ lenders like Nectar Money do not penalise early repayment of your loan.

With a responsible plan, the right lender, and this checklist in hand, you’re now empowered to make an informed financial decision that suits your unique circumstances best.

Personal finance advice

Unsure of how to manage your money? You can access free personal finance services or pay for professional personal finance advice.

How much can you borrow with a Nectar Money Personal Loan?

With Nectar Money you can borrow unsecured up to $40,000, or as little as $2,000. Use our loan repayment calculator to find out how much you could get.

Getting started with Nectar Money

Do you need a great rate on a personal loan? We’d love to help with your personal loan requirements. Find out how much you could borrow and learn more about our personal loans. You can get started with Nectar Money and get a personalised loan quote online which will include your interest rate, maximum borrowing amount and repayment options.

Nectar Money – we make lending sweeter.*

*Nectar Money’s lending criteria and responsible lending checks apply.