Internet loans

A guide to Internet loans where loan applicants can submit their documentation and get their funds fully online - without the need to head into a branch.

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!

Name Product Maximum loan amount Term of Loan Turnaround time Arrears Fee Costs Fortnightly Repayment (for $1500 Loan)
Jacaranda Finance Personal Loan
$10,000
9 to 24 months
Under 1 hour - conditions apply
$35
$0 - $1,000 depending on credit
Borrow up to $10,000 and get access to your funds in as little as 1 hour.
Sunshine Short Term Loans
$2,000
9-14 weeks
30 minutes - conditions apply
$35
20% of loan amount + 4% of loan amount each month
$396
A small loan up to $2,000 that you repay over 9-14 weeks. Loans approved and funded in as little as 30 minutes. Centrelink must not be your primary income
Fair Go Finance Small Loan
$2,000
3 to 12 months
24 to 48 hours
$35
0% Establishment Fee + monthly fee 4%
$354
A small loan between $500 and $2,000 that can be funded in 24 hours.
Credit24 Short Term Loan
$2,000
6-12 months
Same day - conditions apply
$10
20% of loan amount establishment fee + 4% of loan amount monthly.
$396
Credit24 offers this loan up to $2,000 and gives you 12 months to repay. Centrelink borrowers are considered as long as Centrelink payments are not more than 50% of income.
Nimble Short Term Loan
$2,000
62 days to 9 months
1 hour - conditions apply
$15
20% of loan amount + 4% of loan amount each month
$372
A loan up to $2,000 with terms up to 62 days to 9 months. Centrelink cannot be your primary source of income.
Safe Financial Small Loan
$5,000
22 - 52 weeks
Same day - conditions apply
$35
Up to $2,000 - 20% establishment fee + 4% monthly.

Above $2,000 - $400 + loan management fee of up to $399 + from 8.7% to 48% APR
$396
Borrow from $1,000 to $5,000 with same-day funding and no early repayment fees.
Ferratum Cash Loans
$1,900
3 to 12 months
Same day - conditions apply
$55
20% of borrowed amount + 4% of borrowed amount each month
$396
Borrow what you need with loans starting from $500 and approval in minutes.
loading

Compare up to 4 providers

The financial world is becoming simplified in the online space, and this is especially true when it comes to applying for a loan. You can now apply for loans fully online, without the need for a fax machine, visiting a branch, posting any documents, or even calling them. Most lenders will also have a phone number, if you prefer to communicate with them in this way. If an online lender does not have a phone number, they will be contactable via email and/or live chat.

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

payday-warningDo 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.

What is an internet loan?

Technically speaking, it's any loan that can be applied for online. This includes banks that let you apply for one of their loans online, lenders offering online versions of their loans, online-only lenders and so on. However, with the rise of payday lenders and small loans, Internet loans have come to mean payday loans.

How do they work?

Because an internet loan is just a loan that can be applied for online, it works just like any other form of loan. You submit an application (in this case from your phone/tablet/laptop/other device), the lender will then evaluate the application and, if approved, you will be issued with the required funds, usually directly into your nominated bank account.

If you're applying with a lender that is 100% online, you may find that the application process and the turnaround time is quicker than other lenders. Many online lenders offer same-day or next-day approval and funding. This is because uploading your documentation is much quicker online than running back and forth to a bank branch. Also, many lenders have automated systems for checking your eligibility for a loan, some of which can be instant.

Why would you take out an Internet loan rather than apply in-branch?

Internet loans
  • No need to download and submit three months of bank statements, which can be time-consuming to acquire. Internet loan lenders access this information via your online banking.
  • The application process is quick, and you should get a response within minutes.
  • If your application is approved, the funds are transferred directly into your bank account.
  • You can easily compare lenders online, making it easier to find the right loan for you.

In-branch loans

  • You need to print and bring all copies of the necessary documentation to the branch.
  • The application isn't automated, which may be more time-consuming.
  • There are not as many lenders to choose from. Distance can also make it harder to compare lenders.
  • If you work long hours or don't own a car, getting to a branch can be time-consuming and difficult.

How to compare internet loans

These are the features to look out for when comparing internet loans:

  • Loan amount. What is the minimum and maximum amount the lender will let you apply for and is it enough?
  • Loan term. What is the minimum and maximum loan term? With standard personal loans, terms of between one and seven years are available, but terms vary from provider to provider.
  • Fees. Check for upfront fees such as establishment or application fees, and ongoing fees such as monthly or annual fees. These will need to be incorporated into your loan amount. Also check for additional fees such as late payment fees and early exit penalties.
  • Repayments. Can you choose between weekly, fortnightly or monthly repayments? And, as mentioned above, is it possible to make extra repayments without penalty? Can you repay the loan early without penalty?
  • Redraw facility. Does the loan have the option of a redraw facility? Would a redraw facility be useful to you?
  • Interest rate. Is the rate fixed or variable? Is the rate competitive? Remember to check the comparison rate as well as the interest rate, as it takes into consideration any mandatory fees. This will give you a better idea of the true cost of the loan.
  • Affordability. Once you know your loan amount and term, you can use our loan repayment calculator to see if your regular repayments will be affordable on your current budget.

How to compare internet payday loans

If you're interested in applying for a payday loan, your first step will be to compare your loan options. Here are some points to keep in mind:

  • How much the loan costs. Lenders of small cash loans have restrictions on how much they can charge you in fees. They can charge a 20% establishment fee and a 4% monthly fee for loans of less than $2,000 with terms between 16 days and one year. However, if you compare your options, you may find some lenders offering more competitive terms.
  • Loan eligibility. This is the most important factor to consider when comparing loans. Lenders will outline basic criteria regarding your age, income, employment, restrictions in terms of Centrelink payments and other factors to help you determine whether you are eligible for a loan. Make sure you review this criteria before submitting your application.
  • Loan term. Payday loans have terms from 16 days to 12 weeks, or from 12 to 24 months, depending on the loan amount.
  • What features the lender offers. The payday market is getting more competitive, which means lenders are sweetening their deals. Some of these include easier application processes, free debit cards to upload your own funds and receive repeat loans, and member-only areas to expedite the repeat borrowing process. Find out what's on offer from lenders and if you're interested in the additional features.
  • How quickly you can receive your funds. As cash loans are usually used in emergencies, the time it takes to be approved and receive your loan comes into play when comparing lenders.

Dos and don'ts of internet loans

Dos
  • Make a plan. You need to know how much money you need to borrow, how much you can afford to repay and over how long a period of time, and when you need it by. This will help you to establish which loans might work for you.
  • Research. It's important that you compare as many internet loans as you can in order to find the best one for your circumstances. You can do this by using the handy comparison tools on our website, or by looking online yourself. It's also important that you research the credibility of your lender, for example by looking at their reviews.
  • Be realistic. Never apply for a loan that you do not meet the eligibility criteria for. Getting rejected for a personal can negatively impact your credit rating, and may lessen your chances of further finance in the future.
  • Read the small print. Always thoroughly read a loan contract before you sign it. There may be hidden fees and charges that are not displayed on the lender's website.

Don'ts

  • Jump at the loan with the lowest rate. Make sure that this loan is in fact lower-cost than its competitors by checking the comparison rate, as well as any fees that might be attached to the loan. You will also want to look at the loan's features and check that it offers you everything you want/need from a loan. And remember to ensure that you meet the necessary criteria before you apply.
  • Apply for multiple loans. Only ever apply for one loan at a time. Multiple loan applications will often show up on your credit file, and may be regarded as a "red flag" to lenders. Receiving rejections can also negatively impact your credit score.
  • Get scammed. While the lending industry is heavily monitored, there are always potentially fraudulent lenders out there. Always do a background check on your lender to ensure that they are legit before giving away any of your personal details.

"I'm worried about submitting my payday application online. Is it safe?"

If you haven't applied for a loan online or you've never dealt with an online lender before, you may be wondering what kind of precautions are necessary to protect your information. As lenders use different systems to process applications, it's best to check how your details will be protected before you submit them online. Here are some of the ways lenders may protect you online:

  • Most lenders use bank-level (SSL) encryption technology to protect your personal, financial and employment-related information. This means your data is encrypted from when you click send to when it is received by the lender.
  • If you send your Internet banking logins, payday lenders will only receive a read-only version of your statements through a third-party company. You can read more about how this works here.
  • If you are worried about submitting your Internet banking online, some lenders allow you to send your statement manually.

What can I use an internet loan for?

You can use an internet loan for any legitimate purpose. Common uses for internet loans include:

Who is an internet loan suitable for?

Internet loans are suitable for people who are looking for a medium or short-term low-hassle financial solution. This may include:

  • People with full-time work. It can be difficult for people who are employed full-time to get into a branch and apply for a loan in person, as banks are generally only open during business hours. An internet loan is a quick and convenient alternative that makes applying for finance generally more straightforward.
  • People on a low income. Unexpected costs often hit people on lower incomes the hardest, because many live from paycheque to paycheque. Luckily, there are a number of internet loans that are available for people on a low income that can cover whatever life throws their way. There are also a number of interest-free loans for essentials that some applicants on lower incomes may also qualify for.
  • Self-employed applicants. If you're self-employed, you'll know that your income can fluctuate from month-to-month. And a particularly quiet month could leave you without the funds you need to cover the essentials. Luckily, there are a number of self-employed loans that you can apply for online, including low-doc loans, which require less documentation than regular personal loans.
  • Bad credit applicants. If you have bad credit it can be more difficult to qualify for finance, particularly with the bigger banks. Payday loans, sometimes referred to as "cash loans", "online loans", or "internet loans" can be a solution for these applicants. This is because payday lenders mitigate the risk of bad credit applicants by charger higher fees on their loans.

Eligibility criteria

Please note that before you apply for a loan, it's essential that you check any eligibility criteria that you need to meet. You must:

  • Be aged 18 or over. Under 18s cannot apply for loans in Australia.
  • Be a citizen. To qualify for finance, you are almost always required to be Australian citizen or permanent resident. If you're not a citizen though, there are some loans available for temporary residents/visa holders.
  • Have online banking. So that the lender can check your banking history, you will be asked to provide your online banking details. For this, you will need to have online banking set up.
  • Employed. You must have some form of regular income to qualify for finance. This is to show the lender that you are capable of repaying the loan. If you receive income from Centrelink, your Centrelink payments cannot make up more than 50% of your total income.

Required documents

It is also good to have the following documentation to hand:

  • ID. You must have an Australian driver's license or passport in order to prove your identity.
  • Your online banking details. Lenders generally want to check 90 days of your banking history to show them whether or not you are likely to be able to repay the loan. Lenders do this securely via a third-party and they can only access a read-only copy of your statements.

How you can apply for an internet loan

You can start by comparing your options using the table above. If you want to read a review of any of the lenders in the table, just click on the name of the loan or "more info" button. The review pages will show you a more detailed explanation of fees, loan terms and eligibility criteria. Once you find a loan you want to apply for and that you are eligible for, click "Go to site" to submit your application.

Nowadays, most lenders have options for applying for loans online. For a greater range of personal loan options and information regarding them, please visit our guide.

More guides on Finder

    Ask an Expert

    You are about to post a question on finder.com.au:

    • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
    • finder.com.au is a financial comparison and information service, not a bank or product provider
    • We cannot provide you with personal advice or recommendations
    • Your answer might already be waiting – check previous questions below to see if yours has already been asked

    Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms of Use, Disclaimer & Privacy Policy and Privacy & Cookies Policy.
    Go to site