Kwoom is an Australian company that offers payday loans to people with a regular income. These short-term cash advances are meant to cover occasional, urgent and short term cash needs. The loans are not designed as a continual source of credit or for dealing with long-standing financial problems.
The firm is an approved member of the Credit and Investments Ombudsman Limited.
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.
Comparison of Payday Loans
Whilst we don't directly compare Kwoom Payday Loan, use the table below to help in your comparisons.
Types of personal loans from Kwoom
The payday loan offered by Kwoom is a short-term fund provision meant to benefit people who are either employed or self-employed and have good credit histories. The loans are meant to help customers with unexpected emergencies such as medical and utility bills or a car breakdown.
This loan attracts a fee for every $100 borrowed. An extension fee is charged on delayed payments, in addition to additional interest at normal rates.
Features and benefits of a Kwoom personal loan
Low loan amounts
Loan customers can get a small cash advance of between $100 and $800, ensuring that they get only the amount of money that they need for a small financial emergency.
Competitive interest rate
The loan has a fair interest rate. There are no hidden fees, administration charges or early payment fees. If the funds are not available on the due date from a customer's bank, that customer will incur a $30 administration fee towards the cost of a failed collection.
Quick online processing
For an applicant's first loan, the funds will normally clear the same day. In some rare cases, this will be done the next day due to delays in the verification process. The firm has a more involved approval process than most short-term lenders in order to minimise the numbers of late payers and so keep charges down. For subsequent loans, if borrowers apply by 15:00 they will get the funds the same night (often around 20:00, depending on their bank).
Credit check
A credit check is undertaken as part of the automated decision making process using an advanced reference checking system. Kwoom will decline giving a loan if the applicant has an extremely bad credit history or is currently bankrupt.
Repayment extension
If there is an unavoidable change in a customer's circumstances, they can extend their loan for up to another 28 days, but the firm will not keep rolling their balance endlessly from month to month. A $15 extension fee will be added to the balance and interest will continue to accrue (at the same rate as normal) during the extension period.
What are the risks of payday loans?
- Unaffordable repayments. Payday 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.
Kwoom loan eligibility
Before applying, it is important for prospective applicants to confirm that they meet all requirements. Borrowers will need to be:
- At least 18 years of age
- Employed/self-employed
- Earning at least $500 per week
- In possession of an active open bank account
How to apply
To apply for a loan, prospective loan applicants must fill out the online application form. This entire process is done online. The documentation required will be as follows:
- ID. Customers will be required to submit some form of identification, as well as their personal details.
- Payslip. Applicants will need to attach a payslip as proof of income.
- Bank statement. A bank statement showing the BSB and account details is needed to determine the applicant's financial history.
- Proof of address. If the bank statement does not show the applicant's current address, this can be provided in the form of a phone or utility bill.
The company will contact applicants within a couple of hours by SMS and email to confirm the application, and successful applicants can expect the funds to be in their bank account the same night.
Returning customers
For subsequent loans, all customers will have to do is fill out the online form, then so long as they have a good payment history and don’t have any outstanding payments, their loan will be instantly approved.
The firm may still ask returning borrowers to sign into their online bank account verification tool so as to verify their recent 90 day transaction history, in which case they do not have to resend documents.
The firm gives loans for a default period of up to 16 days, but it does lend for up to 30 days. Customers can also opt for early repayment at any time, with no hidden fees.
What to consider
There are a large number of similar lenders currently on the market, so it is important for prospective applicants to consider their options and compare loans carefully before submitting an application.
Payday loans also usually come with high fees and interest rates attached, so if people are struggling financially, it may also be worth considering alternative options.
