Squirrel launches no-fee personal loans

The adviser has started the roll-out of its "Homeowner’s Loan" product, which will provide up to $70,000 of financing to Squirrel customers. The product is aimed at owner-occupiers rather than property investors.

Loans will be funded through Squirrel's peer-to-peer lending platform by retail investors, according to the company's marketing manager Marita Kerry.

Kerry said the product, to be launched next week, was New Zealand's first no-fee personal loan: "As far as we’re aware there’s no other loan in the market that gives homeowners this flexibility and the ability to get stuck into a home renovation as quickly and easily as this product allows." She described the proposition as a "consumer finance product that allows homeowners to tackle a renovation without having to talk to the bank".

The loan can be used for renovations, upgrades, and other big purchases needed to improve a home, such as new kitchens, bathrooms, or swimming pools. Customers will receive a rate of 7.95 percent p.a.