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.
⚠️ 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.
How does a Cigno loan work?
Cigno offers loans up to $1,000. People can apply online and when the application is submitted, Cigno will review the last three months of their bank statements to help determine their eligibility. If approved, customers are required to pay a fee of 5% of the loan amount on the day they receive your funds. This is usually the day after they're approved.
The entire loan needs to be repaid within 56 days and the first repayment is due within 20 days. Customers will receive their repayment schedule when they're approved.
Features offered by Cigno Loans
- Loan amount. Customers can apply to borrow up to $1,000.
- Turnaround. Once approved for a loan, customers can expect to receive your funds within the next business day.
What are the risks of short term loans?
- Unaffordable repayments. Consider the size of the regular repayments and ensure the loan is able to be repaid during the loan term. If not, extra fees apply to extend it. Be careful, since repayment periods for these kinds of loans tend to be shorter than regular loans.
- Multiple applications. Every loan application shows up on credit reports. While lenders might not consider credit history, several applications within a short period can have a negative impact on your credit score moving forward.
- Check rates and fees. Be crystal clear on what will be charged for late payments or a default on the loan. The total cost of the loan matters here - lenders can charge interest rates on top of everything else.
- Long-term repercussions and legal issues. Once the loan agreement is signed, the customer is bound to its conditions until the loan and any associated rates and fees have been paid. Typically these loans are unsecured, which means that the lender can initiate legal proceedings against the customer if they can't repay.
Fees charged on a Cigno loan
Cigno is not regulated under the National Consumer Credit Protection Act 2009. The fees it charges are as follows and depend on how many payments you make towards your loan.
- 1-payment loan: 35% of your loan amount
- 2-payment loan: 45% of your loan amount
- 3-payment loan: 60% of your loan amount
- 4-payment loan: 74% of your loan amount
- Account-keeping fee: $5.95
The following fees may apply in the case of a default or rescheduled payment:
- Same day deposit fee: $16
- Priority transfer fee: $16
- Extension of first payment fee: $22
- Change of payment date and amount fee: $22
- Payment reschedule fee: $30
- Collections phone contact fee: $8.80
- Collections tracking fee: $50
- Investigator/handover fee: $175 + legal fees
- First dishonour letter fee: $30
- Second dishonour letter fee: $50
- Third dishonour letter fee: $50
- Dishonoured payment fee: $79
How to apply
You can apply for a Cigno loan online or you can contact GSSF directly. If you apply with GSSF, the application may be longer and the funds are deposited via a cheque in the mail rather than with an electronic funds transfer (EFT). When completing the application, you'll need to provide the following information:
- Your personal details, such as your address and your name
- Your contact information
- Bank statements for the past 90 days that demonstrate a regular income
- Identification such as your passport number, driver's licence, proof of age card or birth certificate
Your credit details are obtained through Credit Sense, which is an external company that uses your online banking information to provide Cigno with the required details.
If approved, you can expect to receive your funds the same day, or on the next business day if you file your application after 2.40pm AEST.
Cigno provides short-term financing up to $1,000. While Cigno isn't a lender, it acts as an agent connecting you to Gold Silver Standard Finance, which provides the financing. These short-term loans are not your typical payday loans. For starters, you'll have to pay 5% of the loan amount on the day you receive your funds. The loan term is short, giving you 56 days to repay your loan. Your first repayment will be due within 20 days. Your repayments will also vary every repayment cycle, from 35% of your loan amount for the first repayment, to 45%, 60% and finally 74% of your total loan amount.