Loan cap up as Kiwis face rising living costs
In response to the ongoing cost-of-living crisis affecting New Zealand, Loansmart has announced an increase in its unsecured loan limits from $50,000 to $75,000, in a move aimed at providing greater financial flexibility to Kiwis struggling with escalating expenses.
Adapting to economic pressures
Murray Greig (pictured above), managing director of Loansmart, said that the decision was driven by the need to adapt to the economic realities faced by many New Zealanders.
“Our increase in loan limits also acknowledges that things cost a lot more than they did a few years ago,” Greig said in a media release.
He pointed out significant increases in costs such as building and travel, which necessitated a revision of the lending limits.
“This move brings us in line with what Kiwis are facing at the moment, and allows us to continue to help them achieve their goals,” Greig said.
The popularity of unsecured loans
Unsecured loans, which do not require collateral, are particularly appealing in today’s economy. They are often sought by individuals who need quick financial assistance or smaller loan amounts. Unsecured loans are quickly approved as they require no asset valuation for collateral.
Economic strain on consumers
With recent statistics highlighting a near 18% increase in average household spending over the past four years, and specific spikes in food and healthcare costs, many New Zealanders are finding it increasingly difficult to manage their finances.
Homeowners have been especially hard hit, with interest rates soaring from below 3% to over 7% in a short period, leaving many with little disposable income.
“Since inflation has increased the price of almost everything, it's a good time for us to adjust our unsecured lending limits,” Greig said.
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