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Early repayment. You can pay off your debt before the end of the loan term if you come into some cash. But watch out for early repayment fees. Many lenders levy a penalty for early repayment, which could wipe out any potential interest savings. Some lenders also charge arrangement fees for personal loans, which you should factor into your cost calculations. Payment protection insurance. A lender will probably try to sell personal loan rates westpac protection insurance (PPI) sometimes known as Accident, Sickness Unemployment cover when you take out a loan.
PPI is intended to cover the loan payments if you cannot work, perhaps if you lose your job or fall ill and it can be useful.
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