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.
Updated February 23rd, 2020
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.
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
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- 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.