Cash Loans

Application Process

Lenders offer these unsecured loans both online and in-store. An online loan application can be completed through online forms, with supporting documents like bank statements retrieved via secure tools. In some circumstances, it is possible to receive an instant decision and have funds in your account on the same business day. For in-store applications, funding usually takes anywhere from 30 minutes to 24 hours from the time of submitting supporting documents (where needed) and signing the loan agreement.

Upon loan approval, cash is usually transferred to your bank account. The time taken to receive the funds will vary, however, if your bank account is NPP-enabled or you bank with certain providers, the money could be with you within minutes. If you completed applying in person, you might have the option to receive cash instead of a bank transfer.

You need to meet the basic requirements to be eligible:

• Be an Australian resident or permanent citizen
• Have proof of identification
• Have a valid mobile number/email address.
• Receive regular income for at least 3 months
• Centrelink benefits do not exceed 20%-50% of the total income depending on the lender.
• Have an active bank account

Lenders will also require 90-days worth of bank statements. This is a regulatory requirement to check your income and borrowing transactions to determine your ‘affordability’ – capacity to pay off your loan on time.

Loan Cost

The typical fees you can incur include:

• Establishment Fees: There is an establishment fee of 20% of the loan amount for loans $2,000 and below. For loans above $2,001, the establishment fee is $400.
• Monthly Loan Fee: For loans $2,000 and below, the monthly fee amounts to 4% of the loan total.
• Interest rates: For loans amounting to $2,001 and above, a maximum interest rate of 48% is included in the payable amount.

Other fees to consider are default and a late repayment fee, which should not exceed 200% of the total loan amount. Be sure to review all fees and costs associated with your loan when you receive your loan contract and before signing.

Repayment Options

These loans are typically repaid in weekly, biweekly, or monthly instalments. Some loan providers such as Cash Converters allow early loan repayments with no penalty, with early settlement reducing the total cost of the loan.

Loan repayment terms are also dependent on the total loan amount, with loans $2,000 and below limited to a  maximum repayment period of 1 year. Loans above $2,000 can be repaid for up to 26 months.

• Revolving credit line/credit cards: Credit cards and line-of-credit offer flexible payment terms and will not impose early repayment fees for the outstanding loans in your account.
• Credit Unions: If you are a member of a credit union, you may make use of credit union loans they extend to their members. While you cannot take out an emergency cash loan with credit unions, you will have longer payment terms and more manageable payment rates.
• Bad credit loans: For individuals who have bad credit history and are not eligible for cash loans, you may consider taking out bad credit loans to improve your credit score or to consolidate your loans. However, bad credit loans usually include a subprime interest rate which covers the risk taken by the lenders in extending the loan to you in the first place.