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Payday loans Australia
Payday loans can be helpful when you need cash fast, but can be expensive compared to other loans. We explain exactly how much and explore some alternatives.
⚠️ 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.
A small loan up to $3,000 that you repay over 12-20 weeks. Loans approved and funded in as little as 30 minutes. Centrelink must not be your primary income
A small loan between $500 and $2,000 that can be funded in 24 hours.
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A payday loan, also known as a short-term loan, is designed to be repaid very quickly – ideally by your next payday. It should be used as an absolute last resort, as the fees and interest rates and much higher than you'll pay for other types of loans.
You usually have between 16 days and one year to pay the loan back, and the longer it takes you to repay, the more fees you'll pay.
There are strict laws in Australia around what you can and can't be charged by payday lenders:
You can borrow a maximum of $2,000.
The lender must charge fixed fees, rather than an annual interest rate.
Fees are regulated by the Australian Securities and Investments Commission (ASIC).
How does interest work with payday loans?
Licensed lenders are not allowed to charge interest on payday loans, but they can charge a lot in fees. When you take out a payday loan, even if its only for a few weeks, you'll have to pay back a lot more than you borrowed.
Each lender sets their own fees, but the maximum legal amount is:
20% loan establishment fee
a monthly loan fee of 4% of your outstanding loan.
For example, if you borrow $500 for one month, you could pay a maximum amount of $100 establishment fee and $20 for the month.
Some lenders may have more affordable options, so it's important to compare payday loans prior to submitting an application.
What are some things to be aware of?
Your repayment for a payday loan can not be more than 10% of your after-tax income over the repayment period. For example, for every $100 you earn after tax, your repayment can be worth no more than $10.
Payday loans are fast. When you need a quick option to access cash immediately, a payday loan means you can get the cash in your account the same day you apply. But, you pay a premium for this.
If a medical emergency occurs, your car needs repairs, or some other unexpected expense pops up and you have bad credit, a payday loan can give you fast access to cash if you aren't eligible for a loan from banks or other financial institutions. But if you don't pay it back in time, the fees get very high.
The fees on these types of loans can really add up. You might pay an early repayment fee for paying off your loan early; and a late payment fee if you don't make a repayment on time and you don't inform your lender beforehand.
There are usually cheaper ways to borrow money when you need it. If you're struggling with your overall budget or you're getting a payday loan to pay off another loan, talk to a financial counsellor. The National Debt Helpline is free and confidential.
A way to merge multiple debts into an easier-to-manage and potentially cheaper loan
Simplifies managing multiple debts, can result in a lower interest rate
Your rate is often based on your credit score. Only worthwhile if your new debt is cheaper than your existing debts
Payday loan
Quick access to up to $2,000
Faster than many forms of credit, easier approval for people with low credit scores
Extremely expensive, must be paid off in under 12 months
Centrelink Advance
Receiving an advance on your next Centrelink payment
No interest or fees
The amount withdrawn comes from your next payments
Hi I'm Elizabeth, personal loans editor at finder.com.au. If you're thinking about applying for a short-term loan one of your main concerns is going to be the cost. We're going to break down those costs so you can decide if these loans will work with your budget.
Short-term loans are one of the most strictly regulated loans available and because of this lenders are restricted as to how much they can charge. The credit regulator ASIC has made it so that lenders offering loans of less than $2,000 with terms of between 16 days and 1 year can only charge fees and not interest rates. That's right, these loans actually come with no interest. The reason people think that interest is charged on short-term loans is that the fees are expressed as percentages.
So let's look at these fees. The first fee that you need to consider is the establishment fee. Lenders cannot charge you more than 20% of what you borrow for this fee. The second main fee you need to consider is the monthly fee. Lenders cannot charge you more than 4% for this fee. Remember that these restrictions only apply to loans of less than $2,000 with terms of between 16 days and 1 year. If you're borrowing more, different restrictions will apply.
Now you know how much you can be charged, let's look at an example. Let's say I take out a loan of $500 with terms of 62 days, which is a pretty standard loan term offered by short-term lenders. In total, I will repay $660. This includes my original loan amount of $500, my establishment fee which equals $100 and 3 monthly fees of $20 each. So now you know how much short-term lenders are able to charge and how to work out how much you will pay when you take out one of these loans. Remember though that not every lender will charge you the maximum allowable fees, so compare your options before you apply. To find out more about short-term loans and how to compare them, head on over to finder.com.au.
Where can you get urgent financial support?
If you're struggling to make ends meet, talk to a financial counsellor. They offer a free and confidential service to help you understand your options and deal with money issues.
A free legal advice service about money matters for Aboriginal and Torres Strait Islander peoples from anywhere in Australia.
Frequently asked questions about payday loans
There are no payday loans in Australia who offer 100% guaranteed approval. Every lender has eligibility criteria, and while some have more relaxed rules than others, all lenders will reject applications from borrowers they see as too risky.
You should be very sceptical of anyone offering guaranteed approval.
If you don't make repayments on time you will be charged a fee. These fees are often flat payments which can add a lot to the total cost of your loan. Any defaults on the loan will also be listed as a negative mark on your credit report and can remain there for as long as seven years. If you already have a loan and you don't think you can make a repayment, contact the lender to discuss what your options are. Reputable lenders will work with you through processes such as payment plans.
Payday loans are an expensive form of credit and you should compare your options as well as research any rates, fees and conditions before applying. While payday loans are heavily regulated by ASIC, it's important to remember that they are costly and you shouldn't apply if there are alternatives available to you. Before you apply, see if you may be eligible and if the other credit types suit your needs. It's also a good idea to calculate costs to see if any of the alternatives are cheaper than a payday loan.
This differs between lenders and will also usually depend on who the applicant banks with. If the lender uses the same bank as the applicant, they can receive their funds within minutes of being sent. Some lenders are able to do this if a customer banks with any of the Big Four.
With most, customers will need to apply and be approved by a certain time (usually around 2pm) for the funds to be received on the same day. If an applicant needs their loan today, the earlier they apply, the better chance they have.
Payday loans have tight restrictions and regulations under government reforms that set limits on how much payday lenders can charge you. Because of this regulation, and because most payday loans have loan terms of less than a year, payday lenders cannot charge you interest the way other lenders do, since other lenders calculate their rates annually. They therefore just charge a percentage of the amount borrowed. They can make references to the effective comparison rates and annual percentage rate (APR), but it's important to remember that payday loan interest rates are based on a shorter loan term than the standard APR calculation of 365 days.
Many payday lenders allow customers to pay their loan early without any extra fees associated. However, customers will still need to pay the full amount associated with the credit contract. Contact your payday loan credit provider if you need to organise an early payment.
Some lenders consider a pension as an eligible form of income. However, whether you're approved will depend on your specific situation and finances.
Some payday lenders and institutions do consider Centrelink payments as income, so you may be eligible for a loan. Most lenders won't approve someone if government benefits make up more than 50% of their total income.
In line with Australian government regulations, you can not renew or roll over your loan. If you want to take out another loan, you'll first have to pay off your current loan and then re-apply (after assessing your current financial situation).
An overdraft account can be a practical solution for repeat borrowing scenarios, especially since you don't have to keep reapplying for a new loan. Although in some situations, an overdraft may not be so useful. If you need more funds than what an overdraft can give, a short-term loan may be another option. Also, not everyone qualifies for an overdraft. With short-term loans, you are able to get access to lump-sum loans that will reach your account within 24 hours.
As an authority on all things personal finance, Sarah Megginson is passionate about helping you save money and make money. She is an editor and money expert with 20 years’ experience and an extensive background in property and finance journalism. Sarah holds ASIC RG146-compliant Tier 1 Generic Knowledge certification, and she's a regular media commentator, appearing weekly on TV (Sunrise, Channel 7 news, Nine news), radio (KIIS FM, Triple M, 3AW, 2GB, 6PR) and in digital and print media. See full bio
Sarah's expertise
Sarah has written 193 Finder guides across topics including:
I have bad credit. I only need a $500 loan fast approval 100% guaranteed. Where can I go? Who will lend to me first application?
Finder
JoshuaApril 28, 2019Finder
Hi Dave,
Thanks for getting in touch with Finder. I hope all is well with you.
If you want to make sure that you get a loan fast, you would need to make sure as well that you meet the eligibility requirements of the specific loan you are applying for. As of now, there’s no 100% guaranteed loan that you can get because the approval would depend on your ability to provide needed documents.
As of now, what I can suggest is for you to check your options above. Use our table to compare your options based on maximum loan amount, turnaround time, and others. You can then click on the “Go to site” green button of your chosen lender to learn more. Please make sure that you’ve read the relevant T&Cs or PDS of the loan products before making a decision. Moreover, check the eligibility requirements as well and consider whether the product is right for you.
I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.
Have a wonderful day!
Cheers,
Joshua
VidaMarch 19, 2019
Hi
Im looking for small fast loan for one months
Im not working at the moment and i get centerlink income
I dont know what can i do.?
Thanks
NikkiMarch 20, 2019
Hi Vida,
Thanks for getting in touch! For loan options while on Centrelink, you may refer to our comparison table. It shows a list of short-term credit options and banks that may accept your application while unemployed. You can also use the calculator on the page to calculate your borrowing ability. As a friendly reminder, review the eligibility criteria of the loan before applying to increase your chances of approval. Read up on the terms and conditions and product disclosure statement and contact the bank should you need any clarifications about the policy.
Hope this was helpful. Don’t hesitate to message us back if you have more questions.
Best,
Nikki
VickyMarch 4, 2019
Just wondering if I can get loan
Finder
ValMarch 5, 2019Finder
Hi Vicky,
Thank you for leaving a question. If this is your first time taking out a payday loan, it’s important to understand the process before you apply. The entire application will take place online, so make sure you have all your personal documents and financial details handy. You’ll need to compare things like minimum income, employment terms, Centrelink eligibility and whether the lender does a credit check. You can also get an idea of the repayments using the tables given on the page.
Once you’ve compared your options you can click “Go to Site” to head to the lender to start your application.
Each lender is different so ensure you read each step before continuing. Make a note of the terms and the repayment amounts (and dates) and ensure you will have enough to repay your loan.
If you need any assistance, once you’ve clicked “Go to Site” the lender will be able to answer questions you may have.
Hope this helps!
Cheers,
Val
MaryFebruary 20, 2019
I would like to get a loan for today to payoff my debt
NikkiFebruary 21, 2019
Hi Mary,
Thanks for getting in touch! It’s helpful to know that our page doesn’t facilitate any online loan applications. To apply for a loan today, check out the calculator to start to find out your repayments for the loan. Choose the provider as listed on the page and click the GO TO SITE to be redirected to their page to get started on the application. As a friendly reminder, review the eligibility criteria of the loan before applying to increase your chances of approval. Read up on the terms and conditions and product disclosure statement and contact the bank should you need any clarifications about the policy. Hope this helps!
Best,
Nikki
PalamoSeptember 17, 2018
Just wondering if there any chance I can get a loan, please?
Finder
JhezelynSeptember 17, 2018Finder
Hello Palamo,
Thank you for your comment.
As long as you meet the eligibility requirements and has the capacity to repay a loan, you may be eligible to get a loan. Please contact the lender and see your eligibility before submitting an application.
Please make sure that you’ve read the relevant T&Cs or PDS of the loan products before making a decision and consider whether the product is right for you.
Should you wish to have real-time answers to your questions, try our chat box on the lower right corner of our page.
Regards,
Jhezelyn
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I have bad credit. I only need a $500 loan fast approval 100% guaranteed. Where can I go? Who will lend to me first application?
Hi Dave,
Thanks for getting in touch with Finder. I hope all is well with you.
If you want to make sure that you get a loan fast, you would need to make sure as well that you meet the eligibility requirements of the specific loan you are applying for. As of now, there’s no 100% guaranteed loan that you can get because the approval would depend on your ability to provide needed documents.
As of now, what I can suggest is for you to check your options above. Use our table to compare your options based on maximum loan amount, turnaround time, and others. You can then click on the “Go to site” green button of your chosen lender to learn more. Please make sure that you’ve read the relevant T&Cs or PDS of the loan products before making a decision. Moreover, check the eligibility requirements as well and consider whether the product is right for you.
I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.
Have a wonderful day!
Cheers,
Joshua
Hi
Im looking for small fast loan for one months
Im not working at the moment and i get centerlink income
I dont know what can i do.?
Thanks
Hi Vida,
Thanks for getting in touch! For loan options while on Centrelink, you may refer to our comparison table. It shows a list of short-term credit options and banks that may accept your application while unemployed. You can also use the calculator on the page to calculate your borrowing ability. As a friendly reminder, review the eligibility criteria of the loan before applying to increase your chances of approval. Read up on the terms and conditions and product disclosure statement and contact the bank should you need any clarifications about the policy.
Hope this was helpful. Don’t hesitate to message us back if you have more questions.
Best,
Nikki
Just wondering if I can get loan
Hi Vicky,
Thank you for leaving a question. If this is your first time taking out a payday loan, it’s important to understand the process before you apply. The entire application will take place online, so make sure you have all your personal documents and financial details handy. You’ll need to compare things like minimum income, employment terms, Centrelink eligibility and whether the lender does a credit check. You can also get an idea of the repayments using the tables given on the page.
Once you’ve compared your options you can click “Go to Site” to head to the lender to start your application.
Each lender is different so ensure you read each step before continuing. Make a note of the terms and the repayment amounts (and dates) and ensure you will have enough to repay your loan.
If you need any assistance, once you’ve clicked “Go to Site” the lender will be able to answer questions you may have.
Hope this helps!
Cheers,
Val
I would like to get a loan for today to payoff my debt
Hi Mary,
Thanks for getting in touch! It’s helpful to know that our page doesn’t facilitate any online loan applications. To apply for a loan today, check out the calculator to start to find out your repayments for the loan. Choose the provider as listed on the page and click the GO TO SITE to be redirected to their page to get started on the application. As a friendly reminder, review the eligibility criteria of the loan before applying to increase your chances of approval. Read up on the terms and conditions and product disclosure statement and contact the bank should you need any clarifications about the policy. Hope this helps!
Best,
Nikki
Just wondering if there any chance I can get a loan, please?
Hello Palamo,
Thank you for your comment.
As long as you meet the eligibility requirements and has the capacity to repay a loan, you may be eligible to get a loan. Please contact the lender and see your eligibility before submitting an application.
Please make sure that you’ve read the relevant T&Cs or PDS of the loan products before making a decision and consider whether the product is right for you.
Should you wish to have real-time answers to your questions, try our chat box on the lower right corner of our page.
Regards,
Jhezelyn