Fees for loans under $2,000
- Establishment fees. This fee is to cover the set-up of the loan and is capped at 20% of the principal.
- Monthly account fees. Monthly fees are capped at 4% of the principal.
- Interest fees. This is a percentage amount you are charged for the loan and comprises the monthly account fee and establishment fee.
Fees and interest for loans between $2,001 and $5,000
- Establishment fees. This fee is to cover the set-up of the loan. This is capped at $400.
- Interest. Interest is capped at 48% p.a of the principal.
What other fees are associated with payday loans?
- Late payment fees - if you are late with a repayment and don't notify your lender beforehand then you will likely be charged.
- Arrears fees - you will be charged a fee if your account goes into arrears.
- Collection fees - any loans which are referred to collections or are defaulted on may incur additional fees.
- Collection letter send out - if you receive a collection letter because you have failed to make a repayment and the lender cannot contact you then you may be charged a fee.
- Statement fee - if you request an account statement from the lender you may be charged a fee.
Why don't you pay interest on a payday loan?
Questions you might have about your eligibility
Can I apply if I receive the pension?
Can I still get a loan if I receive other Centrelink payments?
Some lenders and institutions do consider Centrelink payments as income, so you may be eligible for a loan. It generally depends on how much you earn, what kind of financial situation you're in and what kind of payments you receive. To find out if you are eligible, read our comprehensive guide to getting a loan on Centrelink payments.
What do I do if I have bad credit?
Payday lenders offer flexible eligibility criteria and generally accept those with less-than-perfect credit, but did you know there are lenders who don't check your credit file?
- You can consider a payday loan with no credit check.
Having bad credit shouldn't stop you from getting a loan. Find our which companies will lend you up to $1,000.
- Find a personal loan lender that doesn't check your credit.
Why should what you earn now be affected by what you did in the past? Find a lender who will assess you on your financial situation as it stands today.
How can I improve my payday loan application?
It's important to arm yourself with enough knowledge to make an informed decision. When you are comparing payday loans and the repayments, some of the things that might be weighing on your mind are:
- What is the purpose of your loan?
How quickly do you need access to your funds, and how much do you need to borrow? If you need immediate access you may want to consider a payday provider who guarantees funds within the hour. Some providers only offer payday loans up to $1,000 or less for first-time borrowers so if you need more than that then you should consider another lender.
- The fees, charges and interest associated with a loan
The fees and costs will determine whether or not you can afford the repayments, so is important to take into account. Payday loans usually offer set fees and interest rates which make their value easier to compare. You should also check the fees you will be charged if you miss or are late with a repayment before deciding on a loan.
- What lender are you applying with?
When choosing a instant payday loan you should also think about the lender. Check the lender's website and make sure they are a reputable company. You should see how transparent they are with their information on fees and interest rates, as well as how easy it is to contact them.
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