RAA Non-Member Secured Loan

How does the RAA Member Secured Loan work?

This is a fixed rate personal loan offered by RAA. You can receive a discount on your interest rate and establishment fee if you join as a member, making the loan cheaper. How much you pay in interest will depend on the amount borrowed. The higher the borrowing amount, the lower the rate. The funds can be used for a variety of purposes, including home improvement, debt consolidation, travel, study and refinancing. You can also use the funds to purchase a new or used motor vehicle, motorbike, boat, jetski, caravan or camper trailer. A deposit may be required for the purchase of jetskis, motorcycles or imported vehicles. You will incur a charge if the loan is repaid early in the first 2 years.

What features does the RAA Non-Member Secured Loan offer?

• Secured loan. With a secured loan, you have access to lower interest rates and higher borrowing amounts. You can use your property as security or other registered goods.
• Fast pre-approval and approval. You can get pre-approval in 7 working hours
• Fast funding. You can receive funding within 24 to 48 hours from settlement.
• Fixed rate. The loan comes with a fixed rate, making it easy to predict repayments.
• Borrow up to $100,000. You can borrow from $8,000 up to $100,000. You may also be able to borrow more if the lender approves it.
• No ongoing fees. There are no ongoing fees associated with this loan.
• Loan terms up to 7 years. Loan terms vary from 3 to 7 years for the purchase of a car, boat, caravan or camper trailer. The loan term for the purchase of a motorcycle or jetski is 3 to 5 years.
• Flexible repayment terms. You can make either monthly or fortnightly repayments, either through direct debit, BPAY or direct credit.

How much does the RAA Non-Member Secured Loan cost?

There are a number of costs associated with the RAA Non-Member Secured Loan. These include the following:

• Loan principal.
• Fixed interest rate of:

• • For loans from $8,000 to $24,999 - 13.05% p.a.
  • For loans from $25,000 to 34,999 - 10.60% p.a.
  • For loans from $35,000 to $54,999 - 9.90% p.a.
  • For loans from $55,000 and over - 9.60% p.a.

• Establishment fee of $399.
• Personal Properties Securities Registration (PPSR) fee of $8.

You may also be charged the following:

• An early termination fee of $225. This fee will apply if you repay the loan in the first 2 years.

What are the pros and cons of an RAA Member Secured Loan?

Pros

• No ongoing fees. That means you won't have to pay monthly or annual fees.
• Large borrowing amount. You can borrow up to $100,000 or even more if the lender approves it.
• Fast pre-approval and fast funding. You can get pre-approved in 7 working hours and receive funding within 1-2 days of settlement.

Cons

• Interest rate is lower if you borrow more. If you want to borrow a small amount, your interest will be higher than if you borrow more.
• Asset can be repossessed if you default. As this loan is secured, your asset can be repossessed if you default on the loan.

Am I eligible for the RAA Non-Member Secured Loan?

To be eligible for this loan, you will have to meet the following criteria:

• Be over the age of 18.
• Receive a regular income and be able to meet your repayments.
• Have a valid Australian driver’s licence.
• Reside in SA or Broken Hill NSW
• Be an Australian citizen or permanent resident
• Be able to offer security in your name.

How do I apply for the RAA Non-Member Secured Loan?

You can apply for the loan online through the RAA website. To apply for the loan, you will have to provide the following:

• Proof of identity.
• Residential and employment details for the past 2 years.
• Financial details, including income, assets, expenses and liabilities.

Once you apply, you will be informed of the outcome of your application within 7 working hours. The loan contract will be available for signing the following business day. You will receive the funds either via BPAY or EFT within 1 to 2 days from settlement.

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