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Frequently asked questions - Personal Loans
Who can apply for a Personal loan? How much can I borrow? How long does it take to apply and how fast can I get my loan? Do I need to provide security? What is a Comparison rate? Will my interest rate be variable or fixed? How is interest calculated and when is it debited? How do I make loan repayments? Can I make additional payments or repay my loan early? Can I redraw extra payments I make on my loan? How do I register for the redraw facility? What does the CANNEX rating mean? How do I pay the application fee?Can I take out insurance cover on the loan? Can I increase my loan in the future?
Who can apply for a Personal loan?
You need to be 18 years of age or over and a Teachers Mutual Bank member or eligible to become a member.
How much can I borrow?
Depending on the purpose of the loan, your income and financial commitments, you can borrow amounts ranging from $2,000 up to $80,000. Use the loan calculators on this website to assist with this.
How long does it take to apply and how fast can I get my loan?
Phone and online applications take approximately 10-15 minutes and you should receive conditional approval within 24 hours (weekdays). You will then need to provide confirmation of your employment and income and accept our letter of offer. Once received and contracts are signed, the funds will be disbursed according to conditions of your loan and your instructions. Loans can also be applied for at any of our offices or by completing and mailing or faxing the application.
Do I need to provide security?
In most cases no however, in some circumstances we may ask for security such as motor vehicle mortgage.
What is a Comparison rate?
All lenders must disclose a comparison rate in their loan advertising. The comparison rate is designed to reflect the total annual cost to a borrower of a loan. It includes the interest payment and fees and shows all costs in one rate, or the average annual percentage rate (AAPR).
Will my interest rate be variable or fixed?
Our personal loans have a variable interest rate meaning the interest rate can go up or down during the term of the loan depending on how the overall economy is performing. We monitor this on a regular basis to ensure you always have a competitive interest rate.
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How is interest calculated and when is it debited?
Interest is calculated on the daily reducible loan balance and debited on the last calendar day of the month.
How do I make loan repayments?
You can choose weekly, fortnightly or monthly repayments by one the following methods
- Direct from your salary
- Periodical payment from your S1 Everyday or S2 Bill Paying account
- Phone or internet banking
- Electronic transfer or deposit from another financial institution
Can I make additional payments or repay my loan early?
Yes, this can be done at anytime with no penalty or charge.
Can I redraw extra payments I make on my loan?
Yes, once you have registered you can redraw any deposits made to the loan in excess of your repayments provided your loan always remains one payment in advance. There is no fee and no minimum redraw amount.
How do I register for the redraw facility?
A registration form to complete is included with the loan documents you receive after approval of the loan. Once you return these forms and your loan is funded, we will register the facility for you. Also see Redraw information in the Manage your personal loan section on this website.
What does the CANNEX rating mean?
Many of our loans have been awarded a star rating by CANNEX an independent financial services group who provide a product comparison based on the interest rates and features of a product. You will see a CANNEX logo next to these products and the number of stars awarded.
How do I pay the application fee?
When you submit your loan application we will ask for authorisation to debit the fee from your loan account on approval or from your savings account if you withdraw your application or let it lapse.
Can I take out insurance cover on the loan?
Yes. Loan Repayment Insurance* is an optional insurance cover to protect your loan or repayments in the event of sickness and accident (disability), unemployment and death. It must be taken out at the time of application.
*Disability and unemployment cover are provided by Allianz Australia Insurance Limited AFS Licence No. 234708 ABN 15 000 122 850 (Allianz), Death Cover is provided by Allianz Australia Life Insurance Limited AFS Licence No. 296559 ABN 27 076 033 782 (Allianz Life). Allianz acts as Allianz Life’s agent in offering Death Cover. Teachers Mutual Bank Limited., acts as an agent for Allianz not as your agent.
Can I increase my loan in the future?
Yes, you can apply to increase your personal loan. Any request is regarded as a new application and normal lending criteria applies.
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