A short term loan is a small loan that is designed to be repaid in a short period to help cover unexpected expensse. In this guide, you can compare short term loan options, find out about how they work and how much they cost.
If you're experiencing financial hardship and would like to speak to someone for free financial counselling, you can call the Financial Counsellors hotline on 1800 007 007. It is open from 9:30am to 4pm, Monday to Friday. When comparing short term loans, ensure you take into consideration any fees, charges and rates you may be charged. It's important to weigh up all your options before applying for any form of credit.
⚠️ 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.
Nimble Short Term Loan
Go to site
25% discount on the establishment fee (now 15% of the loan amount) and monthly fee (now 3% of the loan amount)
Nimble offer a fast and easy online application. You can apply today to get approved for up to $2,000.
- Loan amount: $2,000
- Loan term: 62 days to 9 months
- Turnaround time: 1 hour - conditions apply
- Fees: 15% of loan amount + 3% of loan amount each month
- Quick and easy Approval
- Borrow up to $2,000
- 100% online application
- SMS payment reminders
Short term loans comparison
Updated January 20th, 2020
The Finder short term loan comparison
Compare the features of the short term loans below.
What's the eligibility criteria for a short term loan?
Eligibility criteria differ between lenders, but generally you will need to meet the following:
- Be over the age of 18
- Be earning a regular income, usually at least $350 per week
- If you receive Centrelink, it cannot be more than 50% of your income
- If you have bad credit you need to prove your financial situation is stable and that you can repay the loan
How much does a short term loan cost in Australia?
Short term loans are expensive forms of credit and cost more than traditional personal loans. In Australia, lenders are restricted as to how much they can charge as fees for short term loans. For loans under $2,000, they cannot charge more than a 20% establishment fee and a 4% monthly fee plus late fees and enforcement expenses. The fee structure differs for loans with higher amounts. Fees and rates are listed in Finder review pages and comparison tables.
Have you weighed up the pros and cons of short term loans?
- Online application. Lenders accept online applications for short term loans.
- Various loan amounts. Apply for between $100 to and as much as $10,000 with a short term loan.
- Capped rates and fees. The lender is restricted as to how much it can charge you in interest and fees.
- High cost. Short term loans come with higher rates and fees than other banks and credit unions.
- Dodgy lenders. While there are many reputable lenders operating in the space, you can come across dodgy ones that approve you for a loan you cannot afford.
Reasons you might need a short term loan
People choose to get short term loans for a variety of reasons, including;
- To pay for unexpected or forgotten bills or payments
If you have no other alternatives to cover a forgotten bill, a short term loan may be an option to consider.
- To cover expenses until payday
A small short term loan can be an option to consider if you have no other options available to you and you are short on funds due to an unexpected expense. However, it's important to remember that this is not a long-term strategy.
- To bridge an income gap when you are waiting on payment
If you are waiting on funds to come through for a large payment, a short term loan may be an option if you are guaranteed to receive the payment and you have no other options to consider.
Should you really apply for a short term loan?
Short term loans should only be considered as a last resort. There are a number of alternatives available including community and government financial assistance programmes, Centrelink advances and more. If you need financial assistance you can also get in contact with a free financial counselling service to discuss options for dealing with your debt.
Questions you might have had about short term loans
How long is a short term loan really for?
Short term loans can last anywhere from 16 days up until one year. Most short term loan providers have calculators available that allow you to see exactly how much your loan will cost you based on their fees and your chosen repayment period.
Do I need to put up any collateral?
Some short term lenders accept assets as security for loans. Keep in mind this is risky as you could lose your asset if you default on the loan.
Could I use my credit card instead or even an overdraft?
If you have a credit card with available credit or are eligible for an overdraft with your current bank, then these are definitely alternatives to consider. You can also work out the cost difference if you know how much you need to borrow.
Could I use a short term loan as a deposit for another form of financing?
There are many car loan leases in the market that require a deposit for your finance to be secured. Sometimes borrowers use a small amount to secure a deposit for the car financed from the bank and then refunded through the finance amount. It is wise to consult a financial planner before considering this option.
Why do I have to give my Internet banking details to get a short term loan?
When you apply for a loan, you are required to show the lender that you get paid regularly and can service the loan repayments. In the past, this was done by printing off your bank statements and faxing them in. Since technology has now progressed, there is software that allows you to login and provide these electronically to the lender. These systems are 100% secure and are done over 128-bit encryption.