Top four reasons why Kiwis use personal loans

May 1, 2023

In New Zealand, fast online personal loans are a popular financial tool for Kiwis to access the funds they need, when they need them. Personal loans can help you quickly sort out sudden expenses, no matter the circumstance.

This MoneyShop blog will take a look at the top four reasons why you may need to use a personal loan.

1. To cover unexpected expenses

One of the main reasons people take out personal loans is to cover unexpected expenses. These may include medical bills, car repairs, or unexpected home renovations. This is because personal loans come with quick and easy approvals, offering a convenient way to efficiently access funds when needed.

Check out MoneyShop’s emergency loans here.

2. Debt consolidation

Suppose you have multiple debts, such as credit card or loan debts. In this case, personal loans can consolidate these debts into manageable payments, helping you save on interest and simplify your monthly payments.

This can help you budget more efficiently and can actually help you save money in the long run.

Learn more about debt consolidation loans.

3. Financing large purchases

Personal loans are also often applied for, to help finance larger personal purchases. These include home appliances, furniture, cars, and even Vacations!
Personal loans provide easy access to the funds required for these expenses without putting pressure on your savings account.

4.Personal emergencies

Personal emergencies, such as illness or job loss, can arise unexpectedly. You may use personal loans to cover these emergencies and maintain financial stability during difficult times.
Should you need to take out an emergency loan, luckily, these come with flexible repayment options, meaning it is easy for you to repay the loan and get back on your feet!

Learn more about MoneyShop emergency loans.

Overall, Kiwis use personal loans for all kinds of reasons, such as paying for unexpected expenses, consolidating debt, financing purchases, and covering emergencies. With quick and easy approvals, flexible repayment options, and competitive interest rates, personal loans offer a convenient way to access the funds you need to achieve your financial goals.

Get a fast cash loan with MoneyShop

If you want to apply for a personal loan, we make the process as easy and stress-free as possible! The MoneyShop team is New Zealand’s most trustworthy loan provider, with competitive rates, streamlined online service, and helpful loan information. Contact our friendly team if you want to talk about small or sizeable fast loan options.

*MoneyShop loans are subject to responsible lending checks and standard approval criteria. Interest rates and fees vary based on your loan type and amount. For full details, please see our Privacy Policy, Terms & Conditions, and Costs of Borrowing page.

This information is general in nature and isn’t financial or professional advice. MoneyShop does not guarantee the accuracy or completeness of this content, and we recommend seeking personalised advice before making financial decisions

Our costs and terms

Loan amount

Borrow between $200 and $20,000, depending on your situation. Example: $3,000 over 78 weeks = $58.87/week.

Loan terms

Choose a term from 3 months to 3 years. Repay weekly. We’ll show your full schedule upfront.

Interest rate

The interest rates are 29.95% for loans with security or refinanced from existing loans, new unsecured loans are also 29.95%. The rate is fixed for the whole of the contract. Interest charges are calculated by multiplying the unpaid balance at the end of the day by a daily interest rate. The daily interest rate is calculated by dividing the annual interest rate by 365. Interest is charged when instalments fall due.

Default interest rate

MoneyShop doesn’t charge default interest. If your account falls behind, a $1 daily arrears fee may apply until things are back on track. Reversed payments incur a $5 fee, and missed‑payment contact may involve a letter fee (up to $50), a $5 phone fee, or an $80 + GST home‑visit fee. Any third‑party recovery costs are passed on at cost.

Establishment fees

One-time setup fee based on loan size:

Fee	Cost
$200 to $499	$65.00
$500 to $800	$160.00
$800 to $5,000 for three years or less	$300.00
$800 to $5,000 for three years or less	$300.00
$5,000 to $15,000 for three years or less	$310.00
Over $15,000 for more than three years	$455.00

Some loan setup costs come from third parties — such as credit checks, PPSR searches, and security‑registration fees — and these are passed on at cost. Your account also has a daily administration charge of 55c while it’s open. We send statements every six months, and extra statements are free by email or $5 if printed. If you repay your loan early, an administration fee of $50 (averaged) may apply, along with any third‑party deregistration costs.

Rate type

Your rate stays the same for the whole loan. No surprises. No hidden fees.

Repayment frequency

Pay weekly. Example: $1,500 over 52 weeks = $44.83/week.

Example: Borrowing $3,000 over 78 weeks

Weekly repayment: $58.87
Total repayments: $4,592.86
Includes: Interest, $300 establishment fee, $0.55/day admin fee
Does not include: Any optional or default-related fees

This example assumes a fixed interest rate of 29.95% p.a., no missed payments, and no early repayment. Actual costs may vary depending on your loan amount, term, and repayment history.

Want to check your rate with our personal loan calculator?

Learn more about loan costs, interest rates, and fees on our Cost of Borrowing page.