There are many options when it comes to accessing credit. If someone needs a small loan to cover them, they might consider a short term loan. These loans are designed for unexpected expenses and usually have more flexible application criteria than what is offered by banks or other lenders, making them an option for those earning a lower income, with bad credit or those who receive Centrelink payments.
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. Find out more here: https://www.finder.com.au/coronavirus-financial-help
⚠️ 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.
Cash Train is a lender who specialises in these types of loans and helps out Australian customers in need of cash. When choosing a short term loan lender applicants need to ensure they are reputable, reliable and contactable. Cash Train is a trading brand of MONEY3 Services Pty Ltd Credit Licence Number 389 189. They established operations in 2009, with their management team being involved in short term loans since 2003.
Types of short term loans from Cash Train
Cash Train offers short term loans of between $200 and $2,000 (up to $800 for new customers). Cash Train Loans are not meant to be used to fix longer term financial issues or pay for recurring expenses.
Features of Cash Train short term loans
Short term loans from Cash Train have some notable features which make them an option to consider for some customers.
- Loan approval and payout. Cash Train approves loans online through its simple application process. Funds can be sent to a successful applicant's bank account within one business day of them being approved, but how long it actually takes for the money to be transferred to their account depends on who they bank with.
- Loan amount. Customers can borrow between $200 and $2,000 (up to $800 for new customers).
- Loan repayments. The repayment schedule outlined in a customer's contract will depend on their pay frequency. If they are paid weekly they will make 10 repayments over 10 weeks, if they are paid fortnightly they will make five repayments over 10 weeks, and if they are paid monthly they will make three repayments over a three-month period.
Fees and charges
Cash Train is transparent about the fees and charges of its short term loans. The amount someone pays will depend on the size of loan they take out and their repayment schedule.
What a customer might be charged:
- If someone fails to make a scheduled repayment they may be charged $25
What a customer will be charged:
- An establishment fee which is 20% of the loan amount
- Monthly fees which are 4% of the loan amount
Applying for a Cash Train Loans
In order to apply for short term loan from Cash Train successful applicants will need to meet the following eligibility criteria:
- Be over 18 years of age
- Be employed (casual and part-time employees can apply, but you cannot be self-employed)
- Earn over $1,200 a month
- Be paid regularly into their bank account i.e. weekly, fortnightly or monthly, and not in cash
- If someone has bad credit they can still be considered for a loan. Cash Train looks at their current financial situation, loan purpose and their ability to make your repayments.
- If someone receives Centrelink payments, at least 50% of their income needs to come from employment and they need to earn $1,200 per month from that employment
Customers will need to provide Cash Train with details of their employment and any benefits they receive. They will also need to provide statements for the last ninety days so Cash Train can determine what kind of loan amount they can afford.
Frequently asked questions
What if I have second thoughts about my loan application?
If someone applies for a loan and they change their mind, Cash Train promotes a 24-hour guarantee where if they decide a short term loan is not right for them and return the money within 24 hours, there is nothing extra to pay.
Can I borrow from Cash Train again?
Cash Train does allow repeat borrowers. If someone has borrowed from Cash Train before and wishes to do so again they can apply using the 'existing customers' application form.
When will I receive my loan?
Cash Train send out loans within one business day of approval, but a person receiving this money will depend on the bank they are with.
What is the loan term?
Cash Train offers a maximum term of 10 weeks or 3 months depending on the applicant's frequency of pay.
There are a number of similar loan products on the market, so prospective borrowers should compare their options carefully before submitting an application.