We know financial jargon can get confusing! That’s why we’ve broken down everything you may need to know right here so you can get on with applying for a loan with ease. If things still don’t make sense, reach out to us on 0800 760 000 or come into a branch to see us.

Administration Fee

A fee that covers the administration costs incurred by Instant Finance for your loan and can include transactions fees we incur from banks as well as the ongoing provision of compliant systems to manage your loan account. This is a fee charged with every paid instalment.


This is when your account is overdue. You may have missed one or several instalments. If you need help, we can work out an arrangement that will fit your circumstances.


Everyone who takes out a loan is a borrower and they are committed to repaying the debt.

Credit Record

Your credit record includes all the times you’ve been given credit by a bank or company and whether you paid what is due in time. It also includes any inquiries made about your credit history whether credit has been provided or not. Any application where a financial transaction or multiple financial transactions are likely to occur if the application is approved, is likely to generate a credit record check.     

You’ve had credit if you’ve ever:

  • Had a loan
  • Asked your bank for an overdraft
  • Got a credit card or store card to buy something
  • Needed a payday advance
  • Bought something on hire purchase, including interest-free deals from stores
  • Signed up to a power, phone or tenancy contract.

Debt Consolidation Loan

‘Consolidating’ when talking about debt, means taking out a new loan which is used to either instantly pay off all or significantly reduce other existing debt. In simple terms, a debt consolidation loan removes the complications of juggling multiple loans from multiple lenders and puts them together into one loan with one repayment to make.

Establishment Fee 

This is a one-off set up fee for your loan, covering the cost of processing you’re application and the loan account set up. The fee amount will depend on the amount of new money borrowed and can range from $95 to $270.


A loan instalment is the regular sum of money due to be paid as one of several equal payments for your loan, spread over an agreed period of time.

Interest Rate

Interest is the cost of borrowing money. It's the amount we charge a borrower for the ability to take out a loan. With any loan you take out, interest will be charged. This is referred to as an annual percentage and is calculated on the loan amount for the period of the loan. 

Lending Criteria

Lending criteria are the factors used by lenders to determine whether or not to approve a new loan. These can differ depending on the loan provider but typically there will be criteria similarities. For Instant Finance, this includes things like the borrower being over 18, affordability based on Income, credit record with us and others, what security you can provide, living in New Zealand and having valid photo ID.

Payment Protection Insurance

Payment Protection Insurance is a type of insurance designed to cover you for a loan payment should you not be able to make the payment for reasons like being made redundant or if you’re unable to work due to sickness or injury. It can even pay off the loan In the event of death. We can talk to you about the different options available and help you select the appropriate cover for your needs.

Per Annum

Per annum is a term used to describe a yearly or annual period of time which is typically associated with an interest rate, for example 19.95% per annum.

Personal Loan

A personal loan is a loan taken out as an individual from a lender, as opposed to other loan types like business or commercial loans, mortgages, credit cards or overdraft lending.

Secured Loans

A secured loan is a loan where the borrower provides one or more of their assets like property or car as security for their loan. This gives greater confidence to the lender they will get their money back and can allow greater sums to be loaned out. 

Unsecured Loans

Unsecured loans are loans where there is no requirement for the borrower to provide any assets as security for their loan but because the risk to the lender is higher you can expect the Interest Rate to be higher too.

Variation Fee

This is a one-off fee charged if your loan terms are formally changed during the course of your loan.