Short Term Loan Finder™ – Compare short term loans options
Find out how short term loans work and what eligibility criteria apply.
We’re committed to our readers and editorial independence. We don’t compare all products in the market and may receive compensation when we refer you to our partners, but this does not influence our opinions or reviews. Learn more about Finder.
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.
Sunshine Short Term Loans
- Loan Amount: $2,000
- Loan Term: 9-14 weeks
- Turnaround Time: 30 minutes - conditions apply
- Fees: 20% of loan amount + 4% of loan amount each month
- Bad credit borrowers OK
- Quick & easy Approval
Short term loans comparison
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 and it is more than 50% of your income, repayments cannot exceed 10% of your income. This rises to 20% if you receive less than half of your income from Centrelink.
- 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.
What are the risks of short term loans?
- Various loan amounts. Apply for between $100 to and as much as $10,000 with a short term loan. Higher amounts will attract higher repayments.
- Capped rates and fees. The lender is restricted as to how much it can charge you in interest and fees. Make sure you aren't being charged more than the regulated fees laid out by ASIC.
- High cost. Short term loans come with higher rates and fees than other banks and credit unions. They also usually have shorter repayment periods, which means debt can pile up quick if you fall behind.
- 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. Remember that there is no such thing as a guaranteed loan and anyone who promises otherwise is breaking the law.
- Long-term repercussions and legal issues. Once the loan agreement is signed, the customer is bound to its conditions until the loan and any associated rates and fees have been paid. Typically these loans are unsecured, which means that the lender can initiate legal proceedings against the customer if they can't repay.
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 nothing else 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 choices.
Alternative to short term loans
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.
Frequently asked questions about short term loans
How long is a short term loan really for?
Do I need to put up any collateral?
Could I use my credit card instead or even an overdraft?
Could I use a short term loan as a deposit for another form of financing?
Why do I have to give my Internet banking details to get a short term loan?
More guides on Finder
Bank Australia Commercial Visa credit card
Designed to help you track business spending, this Bank Australia credit card offers cards for employees and interest-free days on purchases.
Brighte Personal Loan
Looking to renovate your home? Find out more about Brighte's personal loan for home improvements and ways in which it may be able to benefit you.
Defence Bank Foundation Credit Card
This card gives you a way to support a program that matches rescue dogs with veterans in need and enjoy a low interest rate on all your spending.
Frequent Flyer Diners Club card
Diners Club isn’t as widely accepted as other cards, but you can still earn 1 Qantas Point per $1 at major retailers with this card.
Diners Club Personal Card
Diners Club offers a competitive rewards program, travel and shopping perks and can be used at businesses including Coles, Woolworths and Target.
Illawarra Credit Union Low Rate credit card
The Illawarra Credit Union Low Rate credit card gives you simple features, mobile payments and a $0 annual fee in the first year.
ebroker Business Loans review
Whatever your business loan requirement, ebroker may be able to help. With a range of loan options from over 70 bank and non-bank lenders compared on-site, could you find the right loan for your business?
Credit cards vs buy now pay later
Both buy now pay later plans and credit cards give you ways to pay off purchases over time – here's how they compare.
Now Finance Secured Personal Loan review
Get rewarded for an excellent credit score with a Now Finance personalised rate secured personal loan. Rates vary between 5.95% p.a. and 15.45% p.a. Apply today.
CommBank Neo card
A new type of credit card to the Australian market, the CommBank Neo doesn’t charge any interest but has a monthly fee instead. Find out more in our comprehensive review.
Ask an Expert