Buddy Loans Small Personal Loan
A guarantor loan option that offers between $2,000 and $5,000.
Buddy Loans offer short term finance of up to $5,000 to applicants who can provide an eligible "buddy" to act as a guarantor.
This person could be a parent, sibling, friend or anyone else willing to guarantee the loan. The guarantor also needs to be an Australian citizen and homeowner.
Maximum loan amount
1 - 12 months
Term of loan
|Product Name||Buddy Loans Personal Loan|
|Minimum loan amount||$2,000|
|Maximum loan amount||$5,000|
|Loan term||1 - 12 months|
|Turnaround time||24 hours|
|Costs||$2000 loan - 20% of the borrowed amount + 4% monthly, $2000 - $5000 loan - $400 establishment fee and 4% per monthly charge.|
|Requirements||You must be over 18 and your guarantor an Australian home owning citizen.|
|Available to Centrelink Borrowers?||No|
How does a personal loan from Buddy Loans work?
Buddy Loans offers short term guarantor loans. This means anyone applying for finance with Buddy Loans will need an Australian homeowner to guarantee the loan. If the person who has applied for the loan cannot meet the repayment requirements, the guarantor becomes legally and financially responsible for it.
Buddy Loans offers up to $5,000, which can be approved within 24 hours once the details of the guarantor are verified. The final loan amount is based on the applicant’s ability to comfortably repay the loan. These loans can be used by applicants who might not have a good credit history or have a few defaults in the past.
Compare Other Payday Loans
Whilst we don't compare Buddy Loans Small Personal loan directly, here are some other loans that are similar.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
Are you struggling financially?
If you're struggling financially and would like to speak to someone for free financial advice, information and assistance you can call the Financial Counsellors hotline on 1800 007 007 (open from 9:30am to 4pm, Monday to Friday). If you are suffering financial problems related to the coronavirus pandemic you may be eligible for additional support. Find out more here: https://www.finder.com.au/coronavirus-financial-help
⚠️ 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.
Features and benefits to consider
- Bad credit option. As Buddy Loans require a guarantor, it is possible to for people with bad credit to apply. Buddy Loans also assesses applications manually, which allows decisions to be made based on the current situation, instead of past credit records.
- Simple terms. The terms of the loan are quite simple. Once an applicant gets a guarantor they can apply for a suitable loan and choose a repayment schedule. The entire process is easy to understand and follow.
- Quick turnaround time. Buddy Loans can offer approval and fund transfers in as little as 24 hours.
- Flexible repayment schedule. The repayment schedule can be chosen according to the capacity of the applicant.
- Loan limits. Applications can be made for $2,000 to $5,000.
Fees and charges
- For loans up to $2,000 with terms of less than one year, there is an establishment fee of 20% of the borrowed amount and a charge of 4% per month.
- For loans from $2,000 to $5,000, there is a $400 establishment fee and 4% per month charge.
- There are no additional charges or fees and early repayment will not incur any penalties.
How to apply for a loan from Buddy Loans
If this loan is suitable for your needs, you can click ‘Go to site’ on this page and start the application process. The online application is quick and you can get a response within ten minutes of applying. Before you start the application, make sure you meet the following eligibility requirements:
- Age. The applicant must be over 18 years of age.
- Guarantor requirements. The guarantor must be an Australian citizen and be a homeowner. A mortgage on the house is acceptable.
- Personal details. Your name and date of birth need to be provided.
- Contact details. The contact details that need to be submitted include your mobile phone number, home phone number and email.
While people who need short term finance and have poor credit may want to consider this loan, it does place a lot of responsibility on the guarantor. This makes it important to look at all the details and weigh up the costs and potential risks before deciding to apply.