CUA, or Credit Union Australia, is a financial service provider that offers banking services, loans, insurance, and financial planning advice to its customers. Borrowers can opt for home loans and personal loans through CUA.
Personal loans being offered by CUA share these key features:
- Loans can be used for various purposes, including car purchase, debt consolidation, renovations, holidays, and education.
- The lender offers both secured and unsecured personal loans. Secured loans are only offered if the loan is to be used for the purchase of a new or used car that is not older than 7 years.
- For fixed-rate loans, secured fixed loans are available for amounts between $5,000-$100,000, while unsecured fixed loans can be borrowed for amounts between $5,000-$50,000. Variable-rate loans include unsecured variable loans between $5,000-$30,000, and discount variable loans between $30,000-$60,000 (up to $100,000 if applied in branch).
- The lender offers flexible repayments that can be made on a weekly, fortnightly, or monthly basis.
- Loans may carry a fixed or a variable interest rate, depending upon the loan type.
- A redraw facility may also be offered with the loan, provided the minimum redraw amount is $200 if conducted in a CUA branch.
How Much Does A CUA Loan Cost?
For fixed-rate loans, CUA charges 6.79% (comparison rate 7.16%) per annum for secured fixed loans, and 9.89% (comparison rate of 10.14%) per annum for unsecured fixed loans. For variable-rate loans, applicable rates are 11.89% (comparison rate 12.15%) per annum for unsecured variable loans, and 10.89% (comparison rate 11.15%) per annum for discount variable loans.
CUA charges an establishment fee of $175 on all loan types. The security admission fee of $90 is only applicable to car loans. There are no fees for early repayments and monthly administration.
The following table provides an estimate of the costs you may expect to incur after taking out a personal loan product from CUA.
|Loan Type||Loan Amount||Loan Term||Total Repayment|
|Secured fixed car loan||$5,000||4 years||$5,724|
|Secured fixed car loan||$10,000||5 years||$11,821|
|Unsecured fixed loan||$10,000||5 years||$12,716|
|Unsecured fixed loan||$25,000||6 years||$33,247|
|Unsecured variable loan||$25,000||6 years||$35,087|
|Discount variable loan||$40,000||7 years||$57,337|
Pros and Cons
Borrowing from CUA has the following pros:
- No monthly or early repayment fees
- Flexible repayment terms offered
- Early payouts do not result in a penalty
- Borrowers are allowed to redraw on CUA personal loans
- Online account management facility available
The following cons pertain to the personal loan products offered by CUA:
- Borrowers with a bad credit score may not be approved for a loan
What is the difference between a secured and an unsecured loan?
A secured loan is one whereby the lender keeps a personal asset(s) of the borrower as collateral against the loan amount. This asset offers some security against the risk posed by the borrower. An unsecured loan is given without any collateral assets.
Does CUA offer loans under $5,000?
Yes, you may be able to avail loans starting from $1,000 through the local CUA branch.
My loan contract has pre-set monthly payments, can I change this?
Yes, you can request CUA to change your payment frequency to a weekly or fortnightly basis.
Does CUA charge any fees on making early repayments?
No, the lender does not charge any early repayment fees.
To be eligible for a CUA personal loan, applicants must:
- Be over the age of 18
- Be a permanent resident or citizen of Australia
- Have employment and/or regular income source
- Not currently be in or in the past have declared insolvency or bankruptcy
- Not have any ongoing or pending claims, or in the past
Customers can make general enquiries by dialing 133 282 between 8 AM – 8 PM on weekdays and 8 AM – 4 PM on weekends, AEDT. Feedback and complaints can also be sent through the CUA website.
You can apply online, over the phone, or in-branch, for a CUA loan.
To apply over the phone, please call 133 282 between 8 AM – 8 PM on weekdays and 8 AM – 4 PM on weekends, AEDT.
To apply in a CUA branch, visit the one that is closest to you.To apply online, follow these steps.
Step 1 – Access the online application form and choose your loan
The application form can be found at their webiste after clicking on the Apply now button, as displayed in the image below.
The application form begins by asking you about the loan purpose and amount and then provides you with recommended CUA personal loan products that you can use to fulfill your needs.
For example, if you need a loan to consolidate debt, for an amount of $7,000, the Loan Selector tool will recommend two loan products, including an unsecured fixed loan and an unsecured variable loan.
Step 2 – Submit the online application form
Once you have selected your desired loan product, follow the steps and complete the application form. This form will require you to input the following information, so make sure you have this readily available.
- Details pertaining to your employment, income, personal assets (including money, land, etc).
- Details pertaining to any outstanding debt obligations, such as loans, credit card debt, etc.
- Information presented on your Australian driver’s license, Medicare, and Passport (if available).
After completing the form, submit it for consideration. This entire process (so far) should take about 20 minutes of your time.
Step 3 – Accepting the contract and receiving funds
If the lender finds you eligible for your desired loan product, you will receive an online approval and also the loan contract. This loan contract will contain all terms and conditions that would apply to your loan agreement with the lender. Carefully evaluate all mentioned details, including the loan amount, repayment schedule, and applicable costs, and ensure you will be able to afford the repayments on time.
This contract will be presented online and must be accepted online as well. After you have accepted the contract, send it back to the lender. After CUA has received the loan contract with your acceptance, the lender will disburse the loan amount into your bank account.