Unsecured Loans NZ

Unsecured loans give borrowers the ability to access a small cash loan, without having to own an asset to be used as security. There are a range of easy unsecured loans in NZ, and at Pronto we offer some of the fastest, fairest unsecured loans in the country. Whether you’re looking for a short term payday loan or you’re planning to spread the repayments out over a longer term, to make the weekly or fortnightly amount more affordable. Our fast unsecured loans are designed for New Zealanders who need a quick cash loan, but want to ensure they’re getting a low interest rate.


What are unsecured loans?

An unsecured loan for New Zealand borrowers is a loan that doesn’t require any security, often referred to as collateral. Whereas most personal loans in NZ need an asset as security, our unsecured loans allow you to borrow without owning an asset. With a secured loan, there is a risk that if you don’t repay the loan then your security (often a car) will be repossessed and sold to cover the loan. But that’s not the case with unsecured loans. This doesn’t mean that you can avoid making payments, as you still sign a standard loan contract and have a legal obligation to repay. There are just different steps taken by the finance company if you don’t repay, most often the pursuit of legal action to enforce the debt.

How do I qualify for an unsecured loan

To qualify for an unsecured loan you’ll need a good credit history. This is a very important part of every assessment when you apply for a loan. With Pronto we look at your comprehensive credit profile, and use that alongside a bank statement analysis and a range of other data, combining it all to create your own unique Pronto Client Rating. This is a figure we use for every loan application, and it allows us to objectively assess each applicant and be sure we only approve loans that we are confident are going to be repaid.

What are the best unsecured loans?

The best unsecured loan in NZ is the one with the lowest interest rate and lowest total cost. When comparing unsecured loans you need to look at the annual interest rate, alongside the credit fees. At Pronto our best unsecured loans have been designed to be some of the fairest in NZ, with low interest unsecured loans available anywhere in the country. You can view our full costs of borrowing and compare it with every other lender in NZ. Be aware to look at the total cost of the loan, as some payday loans have extremely high interest rates and low fees, whereas other lenders have low interest rates and higher fees. We are not a payday lender, but with no early repayment fee you can always pay your unsecured loan off early and significantly reduce the total interest you pay on the loan. We do have a minimum loan term of 26 weeks (182 days) and a maximum term of 5 years (1825 days).

What interest rates are charged for unsecured loans?

At Pronto our annual interest rates for unsecured loans range from 9.97% to 29.97%, depending on your Pronto Client Rating. This has been designed to reward good customers with low interest rates, because they are safer borrowers. As an unsecured loan has a higher risk than a secured loan, your Client Rating will be lower than it would have been if you applied with security to support your application. So if you’re looking for a way to improve your Client Rating and get a lower annual interest rate, you could consider adding a car as security and switching from an unsecured loan to a secured loan.

Are secured loans or unsecured loans better for you?

Each loan is different and will depend on your personal circumstances. Secured loans generally have a lower annual interest rate because the risk is lower. And unsecured loans in NZ will normally have a higher annual interest rate. But a lot of customers don’t own their own car, so it’s not possible to apply for a secured loan. Or alternatively they may already have money owing on the car which means they can’t use it as collateral on a secured loan. When comparing secured and unsecured loans a big difference is often the annual interest rate you receive. So it’s important to weigh up the cost and benefit of adding a vehicle to the application, if you have a choice.

Can you get an unsecured loan with bad credit in NZ?

Unsecured loans generally require you to have a good credit history, as the lender is taking a larger risk without collateral to support the application. However depending on the state of your credit report, there are occasions where you can get a bad credit unsecured loan. If you have a bad credit history, it will be very important that your bank statements show you’re a responsible customer and will be able to afford the loan, offsetting the risk of your bad credit report. The Pronto Client Rating will use your bank statements as a major decision point, alongside your credit history when determining if we can approve your unsecured loan. Generally however a bad credit profile makes it difficult to get an unsecured loan approved.

Can beneficiaries get unsecured loans in NZ?

Yes New Zealand beneficiaries can get an unsecured loan from Pronto. The most important thing with our unsecured loans is your Pronto Client Rating, which combines your comprehensive credit profile, with a thorough assessment of your bank statements and a range of other data to create a wholistic assessment of you as a borrower. If you have a high Pronto Client Rating and are a beneficiary in NZ looking for an unsecured loan, Pronto can likely help out. Our unsecured loans are available to WINZ beneficiaries and those on a sickness benefit, as long as you’ve got a good credit profile, low fixed expenses and we can prove that you’re comfortable and able to afford the repayments.

How do secured loans and unsecured loans affect your credit report?

Both secured loans and unsecured loans in NZ will appear on your comprehensive credit profile, and as long as you repay them, they will show future lenders that you met your obligations. Each credit bureau uses your repayment history in a different way when maintaining your credit profile, but the key with any loan is to ensure you keep up to date and make payments as intended. Your credit profile isn’t just about showing you can repay debt, it also takes into account how much debt you have at any one time. So it may not be the best idea to take a number of loans out under the assumption that the repayments will have a positive impact on your credit score, if the total amount of debt has the potential to negatively affect your profile. There is no one size fits all, as it depends on your unique circumstances. But it may be a good idea to get a copy of your own credit report through Centrix at Check My Score. The team there will be able to answer any specific questions you have about your own credit report.

What can you use an unsecured loan for?

Our easy unsecured loans are available throughout NZ, and can be used for a whole range of reasons. You can use our unsecured loans to

  • Pay for a rental bond. If you’re moving into a new flat, the bond is a big expense. A number of our customers have used an unsecured loan to help them get into their new home.
  • Repair your car, whether it’s new tires, get a WOF or even some fancy new seat covers.
  • Cover unexpected medical expenses.
  • Purchase furniture or electronics, especially if you’re moving into a new home or flat.
  • Cover your bills until payday. Whilst we aren’t a company that offers payday loans, our unsecured loans do have the option of being repaid with no early repayment fees, so if you want to settle the loan early you can save a lot of money on interest.
  • Put a deposit on a holiday. Whether it’s booking accommodation or reserving a rental car, our small unsecured loans can help you plan your trip in advance.
  • Pay for school supplies. Whether studying yourself or getting the kids all of the necessary items for school.

What’s the difference between payday loans and unsecured loans?

A payday loan in NZ is one that’s designed to be repaid over a matter of weeks, often just four weekly payments. And as a result of the small amount borrowed payday lenders charge extremely high annual interest rates. We don’t offer payday loans at Pronto as we believe they’re an unfair financial product, that charges too much interest and has repayments that place borrowers in an unnecessarily difficult position.

So as an alternative to payday loans, we offer low interest unsecured loans NZ wide. These have been designed to have more affordable repayments, spread over a longer term. And most importantly, no early repayment fee. So if you want to settle the loan at any time, you won’t be penalised, you’ll actually save money by paying less interest. Our unsecured loans are a great alternative to payday loans, and we highly recommend that you compare our costs of borrowing with any payday lenders if you’re looking for a small unsecured loan.

Who gets an unsecured loan in NZ?

We have thousands of Kiwi customers and our unsecured loans are designed for the ones we know can afford it. You do need to have a high Pronto Client Rating to get an unsecured loan, so a good credit history and bank statements showing you’re in control of your money are both really important. Our unsecured loans are used by a full range of Kiwis throughout New Zealand. Whether you’re a nurse, business person, school teacher, builder, receptionist, factory worker, airline pilot, office worker or even a professional sportsperson, we’ve lent to them all. You can see what our actual customers think our our great unsecured loans here.

How can I get an unsecured loan with Pronto Finance?

You can apply online using our easy slider below, and we’ll assess your unsecured loan application with our 9 minute processing promise.


unsecured loans