In this guide, we compare two prominent short-term lenders to find out which fees, features and restrictions may suit borrowers differently.
⚠️ 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.
| Feature | Nimble | Cash Converters |
|---|
| How much can you borrow? | $300 to $5,000 | $50 to $4,600 |
| How do you apply? | Online | Cash advance: In-store only
Small or medium personal loan: Online |
| How long do you have to repay? | 62 days to 9 months | 4 weeks to 2 years |
| How much will the loan cost? | Loans of up to $2,000: 20% of loan amount + 4% of loan amount each month Loans of $2,001 to $5,000: Application fee of $400 + 47.62% p.a. for $2,050 to $5,000 | Cash advances and small personal loans: 20% of loan amount (establishment fee) + 4% of loan amount each month Medium personal loans: $400 (establishment fee; financed under loan) + 48% p.a. interest |
| Eligibility criteria | Applicants must be employed and earn a regular income into a bank account. | Applicants must be over 18 and live in Australia. For a medium personal loan, applicants must also earn at least $1,000 per week and have been in their current employment for at least three months. |
| How quickly is the loan funded? | Within 60 minutes if the loan is confirmed by 4:30 pm. The next business day for loans confirmed after this time. | Same day for cash advance loans and 24-48 hours for small and medium personal loans. |
| Do they have a prepaid card? | No | Yes |
| How much are you charged for a late repayment? | Direct debit dishonour fee: $15 Default fee: $5 per day | Dishonour fee: $33 |
| Can you pay off the loan early? | | |
| Want to apply? | Review and apply | Review and apply |
What are the risks of payday loans?
- Unaffordable repayments. Payday loans or short-term loans are an expensive way to borrow money and should only be used as a last resort. Check the size of each repayment and ensure you will be able to pay it on time. Unaffordable repayments can lead to late fees that will only make things worse.
- High rates and fees. Rates and fees on payday loans are high but there are rules in place so be sure to check your lender is not charging you more than ASIC allows. Also, look at what you would be charged if you are late on a payment or if you default on the loan altogether.
- Unreputable lenders. All Australian lenders should be accredited by ASIC. Check for a credit licence on the ASIC Register and ensure that the lender is easily contactable.
- Impact on credit score. Every loan application shows up on credit reports. While lenders might not consider credit history, applying for lots of loans within a short period can have a negative impact on your credit score in the future.
For customers in need of a short-term loan to cover a financial emergency until payday, both Cash Converters and Nimble offer loan options.
For customers deciding which one is right for them, they should remember to consider how much they want to borrow, the application process and which of the lenders they may be eligible with.
Do you really need a loan today?*