Sometimes, you need a slightly larger short term loan. Lenders have been increasing their maximum loan amounts, so if you need a loan up to $4,000 you have a few options available. You can also borrow $4,000 from banks and credit unions if you are eligible. Find out about all of your options below.
Financial hardship
If you're experiencing financial hardship and would like to speak to someone for free financial counselling, you can call the Financial Counsellors hotline on 1800 007 007. It is open from 9:30am to 4pm, Monday to Friday. When comparing short term loans, ensure you take into consideration any fees, charges and rates you may be charged. It's important to weigh up all your options before applying for any form of credit.
⚠️ Warning about Borrowing
Do you really need a loan today?*
It can be expensive to borrow small amounts of money and borrowing may not solve your money problems.
Check your options before you borrow:
For information about other options for managing bills and debts, ring 1800 007 007 from anywhere in Australia to talk to a free and independent financial counsellor
Talk to your electricity, gas, phone or water provider to see if you can work out a payment plan
If you are on government benefits, ask if you can receive an advance from Centrelink: Phone: 13 17 94
The Government's MoneySmart website shows you how small amount loans work and suggests other options that may help you.
* This statement is an Australian Government requirement under the National Consumer Credit Protection Act 2009.
A reusable credit facility of up to $75,000. Receive a tailored interest rate between 8.99% p.a. and 17.99% p.a. (9.67% p.a. to 18.6% p.a. comparison rate) based on your risk profile.
While these are typically associated with smaller loan amounts, many lenders offer loans up to $10,000. Loans up to $4,000 from short term lenders operate under an ASIC cap, so you won't be charged more than a $400 establishment fee and a 48% p.a. rate that includes all other fees and charges. Loan terms vary between 16 days and two years.
Unsecured personal loans
You'll be able to take advantage of longer loan terms with an unsecured personal loan from a bank or similar lender, as well as lower interest rates. Most unsecured personal loans come with rates between 8-17% p.a. and have terms of one to seven years.
Secured personal loans
If you opt for a secured personal loan you will be able to take advantage of lower rates, usually between 4-12% p.a. Terms and fees are normally the same as unsecured personal loans.
Overdraft or line of credit
These types of loans let you withdraw up to and including a limit, with the overdraft being attached to your transaction account while the line of credit comes as a seperate account. For both, you only repay what you borrow and as long as you meet the minimum repayments the account remains in good standing. Overdraft funds can only be accessed when your transaction account goes into the negative, but a line of credit can be accessed whenever you need it.
What you should be considering when comparing $4,000 loans
Once you've decided on the best type of loan that will suit your needs, the next step is comparing your loan options from different lenders. Here are some things to keep in mind when comparing:
What is your Interest rate going to be? Interest rates can vary considerably even with the same kind of loans, and this is especially true of bad credit loans. The interest rate can be a good indication of how competitive a loan is, so is an important aspect to take into account.
What fees and charges are in your contract? When you take a $4,000 loan you will always end up paying back more than that and the interest it attracts. This is because of the fees and charges you have to repay through the course of the loan. These can include application fees, establishment fees, monthly service fees, and settlement fees. If you miss any of your repayments, you can also expect to pay late payment penalties.
What kind of repayment options available? Many lenders allow you to choose between making weekly, fortnightly, and monthly repayments, so you're able schedule your repayments according to when you get paid. Some lenders allow you to make extra repayments without charging any penalties, and some allow you to pay the entire balance ahead of time without penalising you in any form. In some cases, you might have to pay a fee if you pay the entire amount ahead of time, so check all the charges that apply before doing so.
Can you get access to redrawing funds? If a lender allows you to make extra repayments on your loan, find out if you can access to these funds through a redraw facility. This facility may attract a fee and come with set withdrawal limits.
How you can increase your chances of being approved
While there is no telling for certain if a lender will approve your application or not, a little caution on your part can definitely increase the possibility of a successful application. Read through the following before you apply:
Check the eligibility criteria
You can check the minimum eligibility criteria for any loan by looking at the review page on finder. You will usually need to be over the age of 18 and receiving an income, but certain lenders may require you to have good credit or to be employed (that is, not receiving Centrelink income).
Check your credit file
Did you know that errors can creep into your credit file, and these can reflect poorly on your creditworthiness? It can help to go through your credit file before applying for any type of credit by ordering a free copy online. If you find negative listings, take these into account before applying for a loan.
Limit your applications
Your credit file will show just how often you apply for credit, and when you apply for credit often, prospective lenders may view this in a negative light. Compare your options well before you apply and keep the applications to a minimum.
Is there anything to consider?
You should think about how you’ll go about making repayments even before you apply for a $4,000 loan. When you don't make timely repayments your credit file can be adversely affected, and you’ll also have to deal with late payment charges. Besides, the longer you take to repay the loan, the more you might have to pay in the form of interest.
A simple way of establishing what your repayments will look like is to use a loan repayment calculator. Start by identifying if you wish to make weekly, fortnightly, or monthly repayments, and then enter details such as the loan amount, loan term, and interest rate.
They offer varied loan terms. With loan terms varying between 16 days and seven years, you can opt for one as per your financial needs and situation.
Apply online with ease. The online presence of most lenders helps simplify the entire process. You can start by applying online, and you can keep track of the loan online, as well.
Some loans have no credit checks. Individuals who cannot get conventional loans because of poor creditworthiness have the option of lenders that don’t require credit checks, or of those who do but will consider bad credit applicants regardless of their history.
Know what does not
Steep costs. Certain loan types, like bad credit loans, tend to attract higher interest rates, so think twice before applying for such a loan. Unsecured loans traditionally charge higher interest rates as well when compared to their secured counterparts.
Higher repayments. When you combine higher interest rates with shorter loan terms, the result is increased repayments. Consider if these repayments will be affordable before you take the loan on.
Dubious lending. The number of online lenders in Australia is on the rise, and this field is not devoid of its share of disreputable lenders. Certain lenders may exploit people with poor creditworthiness through exorbitant fees and rates, so ensure any loan you take on is competitive and that the lender holds a reputable place in the market.
What to avoid with $4,000 loans
Taking any kind of a loan can come with its share of pitfalls, so it’s best that you avoid the following:
Don’t end up getting a loan that you can’t repay. Make sure you have a plan in place when it comes to making repayments.
Avoid taking out a bad credit loan if you have access to other loan options. High fees and inflexibility are two reasons ASIC cites when warning borrowers against such loans.
Avoid taking the first loan that comes your way— remember to compare your options to ensure you take on one that is the best for you, and that is the most competitive.
Questions you might have about $4,000 loans
How do I go about applying for a $4,000 loan?
Start by comparing your options on this page. Once you find a loan you want to apply for, click the ‘Go to Site’ button to take find out more about applying or to fill out an application form.
What options do I have when it comes to repayment methods?
In some instances, you will have to set up direct debits through your salary or a bank account. Other repayment methods some lenders offer include making payments via online funds transfer, Australia Post, BPAY, and via cheque.
Do such loans offer loan protection insurance?
Certain personal loans give you the choice of getting loan protection insurance as an optional extra.
Can unemployed individuals get $4,000 loans?
Lenders look for some form of guarantee that you will be able to repay the loan, and unemployed applicants don't have employment to offer as this guarantee. However, some lenders will consider you if you still receive an income.
Elizabeth Barry is Finder's global fintech editor. She has written about finance for over five years and has been featured in a range of publications and media including Seven News, the ABC, Mamamia, Dynamic Business and Financy. Elizabeth has a Bachelor of Communications and a Master of Creative Writing from the University of Technology Sydney. In 2017, she received the Highly Commended award for Best New Journalist at The Lizzies. Elizabeth has found writing about innovations in financial services to be her passion (which has surprised no one more than herself).
Your first holiday as a couple should be exciting, not nerve-wrecking. To get it right check out our guide on the dos, don'ts and best places to go for a winning first trip with your better half.
How likely would you be to recommend finder to a friend or colleague?
0
1
2
3
4
5
6
7
8
9
10
Very UnlikelyExtremely Likely
Required
Thank you for your feedback.
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
Important information about this website
finder.com.au is one of Australia's leading comparison websites. We compare from a wide set of major banks, insurers and product issuers.
finder.com.au has access to track details from the product issuers listed on our sites. Although we provide information on the products offered by a wide range of issuers, we don't cover every available product. You should consider whether the products featured on our site are appropriate for your needs and seek independent advice if you have any questions.
Products marked as 'Promoted' or "Advertisement" are prominently displayed either as a result of a commercial advertising arrangement or to highlight a particular product, provider or feature. Finder may receive remuneration from the Provider if you click on the related link, purchase or enquire about the product. Finder's decision to show a 'promoted' product is neither a recommendation that the product is appropriate for you nor an indication that the product is the best in its category. We encourage you to use the tools and information we provide to compare your options and find the best option for you.
The identification of a group of products, as 'Top' or 'Best' is a reflection of user preferences based on current website data. On a regular basis, analytics drive the creation of a list of popular products. Where these products are grouped, they appear in no particular order.
Where our site links to particular products or displays 'Go to site' buttons, we may receive a commission, referral fee or payment.
We try to take an open and transparent approach and provide a broad based comparison service. However, you should be aware that while we are an independently owned service, our comparison service does not include all providers or all products available in the market.
Some product issuers may provide products or offer services through multiple brands, associated companies or different labelling arrangements. This can make it difficult for consumers to compare alternatives or identify the companies behind the products. However, we aim to provide information to enable consumers to understand these issues.
Providing or obtaining an estimated insurance quote through us does not guarantee you can get the insurance. Acceptance by insurance companies is based on things like occupation, health and lifestyle. By providing you with the ability to apply for a credit card or loan we are not guaranteeing that your application will be approved. Your application for credit products is subject to the Provider's terms and conditions as well as their application and lending criteria.
Please read our website terms of use for more information about our services and our approach to privacy.
Do you really need a loan today?*
Can I make a loan of 4000 dollars
Hi Storm,
Thanks for your comment, but you’ve left it on finder.com.au – an online comparison service, not a lender.
If you’d like to compare loan options, use the table above and then when you’ve found a lender, click through to their site with the green button.
I hope this helps you.
Cheers
Matt