GE takes price lead in personal loans

GE Money began marketing a low-price personal loan with a headline interest rate of 8.74 per cent. GE said the personal loan, marketed as “GEnie” was aimed at a market that was due for a shake-up. GE Money won’t charge any monthly fees but will charge an application fee of $155 for loans of more than $2,000. The financier will accept applications for loans as low as $500. The interest rate is among the lowest of any interest rates on offer for personal loans in Australia, and compares with rates on personal loans from major banks of more than 12 per cent in most cases. The low interest rate from GE Money also reflects an increasing effort by the US-based financier to cultivate demand at low price points, in contrast to a long history of promoting consumer credit at very high interest rates.