
Get exclusive money-saving offers and guides
Straight to your inbox
Updated
We’re reader-supported and may be paid when you visit links to partner sites. We don’t compare all products in the market, but we’re working on it!
Prospective cash loans applicants should be aware that cash loans are intended for financial emergencies and unexpected costs and are not long-term financial solutions. Most online cash loans providers allow their customers to apply online and successful applicants can get their funds to them within hours or the next day if they're approved.
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
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:
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.
This guide includes information about:
These loans are generally designed to meet small, short-term requirements, so they are loans of up to $2,000 and they mostly come with repayment terms of less than one year. If someone's application is accepted, the loan amount is normally transferred to their nominated bank account. Repayment schedules are usually set according to the successful applicant's pay dates and capacity.
A cash loan works in a similar way to a payday loan or a cash advance. Customers apply for the loan amount they need and submit the required documentation and supporting evidence outlined by the lender. This evidence usually includes the last three months of a person's bank statements. The lender will then assess the application based on the information the applicant supplies (usually electronically) and provide the applicant with a decision as to whether or not their application has been accepted.
Online cash loan lenders can often complete the whole process with very short turnaround time. There are also lenders who specialise in bad credit cash loans and provide loans to borrowers who might have less than "perfect" credit history. Other lenders also offer loans to those who receive Centrelink payments.
There are a few things that prospective applicants should take into consideration before and during the application process. They should:
Different lenders specialise in specific types of cash loans. Some of them provide a quick turnaround time, others provide extended repayment terms, and some may offer flexible lending requirements. The parameters on which these lenders can be compared are:
When taking on credit it is advisable for borrowers to only take on what they can afford. Below are some of the general borrowing amounts.
There are some lenders that offer unemployed cash loans if a borrower has the capacity to repay the loan. Some of them have a minimum income requirement, whereas others can provide loans on the back of an asset or using a guarantor. There are also lenders who accept Centrelink payments as income.
Yes, these loans act as a buffer during these kinds of circumstances. Just keep in mind that the lender will take into account any credit that a person currently holds when they're determining whether they can currently afford a loan. Applicants should also consider when their next credit card repayment is and if they will be able to manage it with an additional loan.
Cash loans are heavily regulated by the government and there are specific caps on fees charges. However, these loans are still more expensive than traditional lending options due to the short-term nature of the repayments and the allowable fees that are higher than normal. Applicants should keep these high costs in mind before they apply.
If someone is in need of quick business capital or waiting on outstanding invoices to be paid, they could consider a cash loan for their business, though they may find that invoice financing is a more cost effective option.
Guaranteed approval on any loan in Australia is a thing of the past. Since the Global Financial Crisis, lenders have tightened their restrictions on guaranteed cash loans. If a lender offers someone a cash loan with guaranteed approval they should be wary and understand that no loan is guaranteed.
Sometimes someone may need a small amount of cash to get by until payday. This is where a payday cash advance could come in handy.
If someone needs the money from their cash loan today, then it could be worth your while to compare a range of fast lenders who offer same-day funding. However, there may be alternative, less expensive options available.
The Australian Securities and Investments Commission (ASIC) regulates the cash lending and payday industry very closely. Each lender must comply with a wide range of rules and regulations that are designed to protect borrowers. Despite all of these precautionary measures in place, it's still important to research and check the lender's authenticity, as cash loan lending does attract disreputable lenders.
If someone cannot meet their loan repayment by the due date, it's important for them to get in contact with their lender as soon as possible. The lender should attempt to work with the borrower to sort the issue out.
Remember that these forms of finance are generally used for emergency situations, so always compare your options before applying online.
Off the back of Christmas spending, a finance expert has warned that your Afterpay habits could negatively impact your home loan application.
A UCapital unsecured business loan can provide up to $300,000 without security, with repayment terms between 3 and 12 months.
Pay no interest on your credit card debt and clear it faster with a 0% balance transfer credit card. Compare and apply here.
Here's what borrowers need to know about home loans with redraw facilities.
InstaPay is a pay-on-demand service offered by Employment Hero that allows employees to access salary advances of up to $250 per week for a flat fee starting from just $2.
Lenders often give discounts to new borrowers, but not to loyal existing customers. Here's how to work out if you're being charged too much.
Learn the key considerations when it comes to starting and growing your smartphone app company.
Read these top tips to help you launch a successful fitness company.
Here's how you could turn your love for vintage clothes into a money-making enterprise.
Find out what you need to know before starting an accounting business.
I have a current personal loan paying it over 12 months with cash converters. Will I get approved for another one?
Hi Rani,
Your eligibility depends on a variety of factor. On its website, Cash Converters explains “We have strict guidelines which apply to the assessment of every loan and this includes strict limits on the number of loans a customer can have at one time.” You’ll need to get in contact with Cash Converters to find out if you’re eligible for a loan.
Hope this helps,
Elizabeth
I would like to know if I’m recieving parenting payment with bad credit rating can I apply for a $2000 loan with a chance of approval
Hi Ngaire,
Thanks for your question.
There are a few lenders who will consider you for a loan when you are receiving parenting payments. If this is your sole income you can find lenders who may consider you on this page. If you are receiving this as well as supplementary income you can find out about your options on this page.
Thanks,
Elizabeth