If you need a large sum of money, then you should be prepared to use an asset as collateral. This could be a land title, a house, a car, and so on. If you need a small amount, then you may be able to get the cash without risking the roof over your head by getting an unsecured loan. You will generally pay higher interest and other fees so be mindful of these. Below are some of the criteria for unsecured loans NZ borrowers need to pass:
Citizenship and Residency
Most NZ lenders will only entertain applicants who are citizens or permanent residents of the country. You must also be currently living here and not just visiting. You will have to submit your ID to prove your identity and verify your citizenship. A passport or drivers license will do. It has to be current and valid.
You need to be older than 18 in order to apply, although most applicants are typically much older than this given the other requirements that must be satisfied. This is more of a legal limit to ensure that the person can be involved in such a transaction.
You will need to submit proof of a monthly income, usually through a pay slip or other official papers. The amount that you get monthly will determine the amount that the lender will be willing to give. The higher your salary, the higher you can borrow since you have the means to pay it back. Of course, this is not the only determinant because other factors can affect your ability to honor your commitment.
One of these factors is job stability. The lender will consider the type of job and position you hold, as well as the industry that you are working in. Loans can take several years to pay back so they are interested in knowing whether you are in a position to provide continuous payments throughout the near future. Unsecured loans are not as strict as housing loans or car loans, however, since these are often paid back in two years or less. You should have an easier time with the approval.
Of course, you should also take care of your credit history in order to improve your chance of getting the loan. Some lenders will do a background check to see if you had defaulted on past loans and if these have been resolved. They will also check if you have existing loans and gauge how much these affect your ability to pay back a new one. Others will not mind if you have a bad credit history as long as you can prove that you have a stable income. However, they may charge higher interest.