Whilst we make every effort to ensure you can afford to repay your loan and it won’t put you in a position of financial difficulty, it’s very important that you consider all options before borrowing money.
There are a number of factors to take into consideration, including the total cost of the loan, the term of the loan, any additional fees, annual interest rates, establishment and administration fees, early repayment fees and whether there are better alternatives.
At Pronto we’re not financial advisors, but we would recommend you speak to an independent third party before entering any financial agreement. Seeking legal advice is also a good option when entering any contract.
If you do wish to use Pronto, then we’ve listed all of the costs of borrowing from us below. Please note that if you default on your loan we do have a credit control process that uses SMS, phone calls, emails and letters to contact you, and these activities will incur further charges. However each loan is different and your loan contract will clearly outline any potential costs involved with being in default.
Annual interest rate (AIR): This is set between 14% and 26% depending on your client rating. This is our own unique system that looks at hundreds of pieces of data to reward safer borrowers and give them a lower annual interest rate. The interest is always fixed for the life of the loan so you know how much you have to repay before you sign the loan contract.
No early repayment fee: We promise to NEVER charge a fee for early repayment. When you customise your loan using our sliders, you can choose how much you want to repay each week, fortnight or month. Unlike a lot of lenders we encourage you to pay as much as you can reasonably afford, because you will save on interest and get the loan paid off sooner.
Establishment fee: This is the fee for receiving, processing and advancing your loan. It’s a one off fee that applies to all personal loans (both new loans and refinances). It is included in your repayments.
Loans of $200-$499: $175.
Loans of $500-$999 : $275.
Loans of $1,000-$20,000: $375.
Administration fee: This is the fee charged to cover the costs of administering your loan. It includes the processing of payments, all customer enquiries and updates, provision of balances and six monthly statements. It is $4.25 per week, but only charged while your loan is active.
Default fee: This is only payable if your loan is in default. It is payable daily, but charged weekly. The default fee covers the costs to the company for loans that are a higher risk, due to being in arrears and is $1 per day while the loan is in arrears.
Default interest: This is the default interest rate for the portion of your loan that is in default. The Annual Interest Rate for the default interest is 22.5%, however this is not charged on the total balance of the loan, only the balance in arrears.