Guest kalamingo Posted December 26, 2011 Share Posted December 26, 2011 Hi all, I am looking to get a new car that cost about $25,000. I will probably need a loan of $15,000 to be repayed in 1 year. I am currently under a bridging visa after applying for a subclass 886 visa, and have been employed full time for over a year. I've never gotten a loan before so I have some questions I need advise on. 1 - Can I get a loan while on a bridging visa? 2 - is $15k, re-payed within a year seen as a considerable low figure loan and easy to get approved? 3 - What documents will I need to provide to secure the loan? e.g. payslips etc? and most importantly, 4 - Will banks contact my company for verification and discuss my visa status? (This is because when I joined my current company, they allowed bridging visa applicants, but they have now changed the rules and I want to avoid unnecessary chatter about my visa status if the banks do call to verify employment. There shouldnt be any issues, just a sensitive topic at work nowadays. Are they legally allowed to speak of my private details with my employer? Would be great to hear from someone that actually works in a bank in this area. Quote Link to comment Share on other sites More sharing options...
Guest The Pom Queen Posted December 27, 2011 Share Posted December 27, 2011 Can't really help apart from saying yes you can get loans on temp visas. Welcome to the forum and I hope someone is able to answer your questions, Andrew Williams a member on here may be able to help. Quote Link to comment Share on other sites More sharing options...
Quinkla Posted December 28, 2011 Share Posted December 28, 2011 Loans are difficult to get if you are on a temporary visa, but not always impossible. My experience is that finance companies will not want to touch you with a bargepole - but you may get more joy from your bank. They will ask for your visa status but do not ask for evidence - although making a false declaration would be a serious matter that could invalidate your visa. The lender should not ask your company for anything - you will provide payslips and a letter from the company if they ask for it but the will not contact your employer directly. $15,000 over one year would have high repayments and would look unusual - hence perhaps trigger alarm bells. It would be more normal to schedule a loan of that size over three to seven years. Quote Link to comment Share on other sites More sharing options...
Guest kalamingo Posted December 28, 2011 Share Posted December 28, 2011 Thanks for the replies guys. I haven't yet contacted finance companies, but I wouldnt want to make a false declaration to my Bank just for the safety of my visa. All banks ask the question of whether I am a PR upon enquiries, so I guess sadly I'll have to rule them out. I am however surprised that $15k over a year would trigger alarm bells. I thought that would make them more incline to approve the loan seeing as I am promising to pay back within a shorter period of time, and loaning only half the cost of the vehicle. But I do thank you for raising it, would love to hear more comments from other people with experience with loans. Quote Link to comment Share on other sites More sharing options...
Quinkla Posted December 28, 2011 Share Posted December 28, 2011 I am however surprised that $15k over a year would trigger alarm bells. I'm sure you would only consider such a loan if you could afford it. But the reason it would set alarm bells ringing is that the average Australian wage is $70k, give or take. If a quarter of that goes on tax, it leaves $52k and repayment of a $15k loan over 1 year would cost over $16k. That would mean spending nearly a third of take home pay on the loan - which is beyond most people. Obviously, if you have higher income then the loan is more affordable, but given the averages explains why it would raise eyebrows. Banks want to lend money as it is one of the main ways they make profit. Their favourite customers are ones who have secure repayments and borrow over a longer term - hence paying them more interest and fees. They don't like risk and don't like short term loans. Banks do not necessarily rule you out if you are on a temporary visa - I have had loans with both NAB and ANZ on a temporary visa - but finance companies would not consider lending for a longer period than the remaining validity on your current visa. Best of luck - and do let us know how you get on. Quote Link to comment Share on other sites More sharing options...
Ben Pham Posted March 19, 2018 Share Posted March 19, 2018 Dear everyone, I am holding bridging visa A at the time being. I am looking for a loan around $10,000.00. Anyone know which finance company or bank can support for lending? Thanks Quote Link to comment Share on other sites More sharing options...
Marisawright Posted March 19, 2018 Share Posted March 19, 2018 2 minutes ago, Ben Pham said: Dear everyone, I am holding bridging visa A at the time being. I am looking for a loan around $10,000.00. Anyone know which finance company or bank can support for lending? Thanks What do you need the loan for? Quote Link to comment Share on other sites More sharing options...
Ben Pham Posted March 19, 2018 Share Posted March 19, 2018 (edited) I need to pay for my visa fee and also purchase a bike for more convenience in transport Edited March 19, 2018 by Ben Pham Quote Link to comment Share on other sites More sharing options...
Ben Pham Posted March 19, 2018 Share Posted March 19, 2018 22 minutes ago, Marisawright said: What do you need the loan for? I need to pay for my visa fee and purchase a bike Quote Link to comment Share on other sites More sharing options...
Marisawright Posted March 19, 2018 Share Posted March 19, 2018 19 minutes ago, Ben Pham said: I need to pay for my visa fee and purchase a bike I don't like your chances of success. What you are asking for is an "unsecured loan". With a car loan, if you can't make your loan repayments, they can repossess the car. If you don't make your loan payments, what can they do? Quote Link to comment Share on other sites More sharing options...
Ben Pham Posted March 19, 2018 Share Posted March 19, 2018 11 hours ago, Marisawright said: I don't like your chances of success. What you are asking for is an "unsecured loan". With a car loan, if you can't make your loan repayments, they can repossess the car. If you don't make your loan payments, what can they do? Thanks for your advice. Actually i have an approval from RCB already and now just wait for my PR. And i am looking for the second job but i dont have any vehicle yet, that’s the main reason i look for a loan. Quote Link to comment Share on other sites More sharing options...
Marisawright Posted March 20, 2018 Share Posted March 20, 2018 3 hours ago, Ben Pham said: Thanks for your advice. Actually i have an approval from RCB already and now just wait for my PR. And i am looking for the second job but i dont have any vehicle yet, that’s the main reason i look for a loan. What does that have to do with anything? You still don't have any assets to offer as security for the loan. Quote Link to comment Share on other sites More sharing options...
Ben Pham Posted March 20, 2018 Share Posted March 20, 2018 7 hours ago, Marisawright said: What does that have to do with anything? You still don't have any assets to offer as security for the loan. Yes, that’s why i need some of your advice in this forum. If i have PR already i dont have to ask you guys for this issue. I really understand that all the bank can’t support for bridging visa so i am asking if anyone know any finance company can support for us in this situation. I have an appoved letter from ACT Government already for my RCB (Regional Certifying Body) so PR is just matter of time to granted Quote Link to comment Share on other sites More sharing options...
Quinkla Posted March 20, 2018 Share Posted March 20, 2018 If I were a bank, I would not offer a loan for a visa application fee because if the visa is not granted, the applicant would have to leave Australia and I would have no means to get the loan repaid. Depending on circumstances, a loan on a temporary visa could be do-able. But on a bridging visa, I think an unsecured loan is improbable. Quote Link to comment Share on other sites More sharing options...
Ben Pham Posted March 20, 2018 Share Posted March 20, 2018 5 minutes ago, Quinkla said: If I were a bank, I would not offer a loan for a visa application fee because if the visa is not granted, the applicant would have to leave Australia and I would have no means to get the loan repaid. Depending on circumstances, a loan on a temporary visa could be do-able. But on a bridging visa, I think an unsecured loan is improbable. Thanks for your advice. We are all known that bridging visa can’t get a loan from bank. So that we look for finance company. So if it’s really impossible here in Australia that’s fine. We can we until PR is granted. So that just normal. Nothing is special to discuss or giving advice. Bridging visa is unsecured, yes it’s correct but when we are holding that visa we also employed as fulltime and the purpose for the loan is purchasing a vehicle. So if any negative issue happen they can possess the bike. And we also have the superannuation and when we loan they always ask for direct debit. So just direct settle in that Quote Link to comment Share on other sites More sharing options...
Marisawright Posted March 20, 2018 Share Posted March 20, 2018 (edited) 54 minutes ago, Ben Pham said: Bridging visa is unsecured, yes it’s correct ... So if any negative issue happen they can possess the bike. And we also have the superannuation and when we loan they always ask for direct debit. So just direct settle in that You misunderstand. When I say "unsecured loan", I am NOT referring to your visa. Lenders are in business. They won't lend to you unless they are very sure they'll get their money back. A "secured loan" is when you get a loan to buy a thing, like a car or a bicycle or a house. If you don't keep up the payments, the lender will take the thing. They will sell the thing to get some of their money back. An "unsecured loan" is when you get a loan for something which the lender cannot sell, like your visa. Even if they take your bike, that will only pay back a small amount of the loan, so that doesn't help. What will happen if you don't pay? They won't get much money back. Direct debit makes no difference - what if you have no money in your bank account? To get an "unsecured loan", you must be able to show you have a secure job with a good salary. You don't have a secure job because you might not get your visa, and if you don't, then your job will finish. I don't believe any lender will lend to you for that reason. If you do find someone, they will probably be a "loan shark", someone who is charging very, very high interest rates. You could end up owing them $30,000, $40,000 or even $50,000 in interest for your $10,000 loan. Edited March 20, 2018 by Marisawright Quote Link to comment Share on other sites More sharing options...
Ben Pham Posted March 20, 2018 Share Posted March 20, 2018 10 minutes ago, Marisawright said: You misunderstand. When I say "unsecured loan", I am NOT referring to your visa. Lenders are in business. They won't lend to you unless they are very sure they'll get their money back. A "secured loan" is when you get a loan to buy a thing, like a car or a bicycle or a house. If you don't keep up the payments, the lender will take the thing. They will sell the thing to get some of their money back. An "unsecured loan" is when you get a loan for something which the lender cannot sell, like your visa. Even if they take your bike, that will only pay back a small amount of the loan, so that doesn't help. What will happen if you don't pay? They won't get much money back. Direct debit makes no difference - what if you have no money in your bank account? To get an "unsecured loan", you must be able to show you have a secure job with a good salary. You don't have a secure job because you might not get your visa, and if you don't, then your job will finish. I don't believe any lender will lend to you for that reason. If you do find someone, they will probably be a "loan shark", someone who is charging very, very high interest rates. You could end up owing them $30,000, $40,000 or even $50,000 in interest for your $10,000 loan. Yes, thanks for your explanations. I am having a full time job with annum salary package. So that’s why i join in this forum to ask if anyone already got the loan when holding bridging visa and have a full time job with the contract like me can help me out. And my situation is i transfer from my working visa to lodge for PR so is it possible to look for a loan now? Quote Link to comment Share on other sites More sharing options...
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