Small payday loans
With loan amounts up to $2,000 or $5,000, understand how these payday loans work as well as the fees, features and eligibility requirements that apply.
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There are different payday loans to suit different financial needs, but small payday loans generally range between $150 and $2,000 or $5,000. Depending on the loan, the repayment terms can sometimes be as short as 62 days or as long as two years. You can usually apply for these loans online and receive the funds within 24 hours if approved.
However, it's important to consider the fees that will be charged and the eligibility requirements that applicants must meet before applying. You can use this guide to learn more about the features, fees and application process for small payday loans.
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
Compare small personal loans in Australia
What are the features of a small payday loan?
- Loan amounts. Small payday loans usually range between $150 and $2,000 or $5,000. How much the applicant is approved for will depend on their financial situation.
- Loan terms. Loan terms can range between 62 days up to one or two years. Although a longer loan term will give you more time to pay it off, you'll likely pay more in monthly fees. If you're considering a long loan term but think you might have the ability to pay it off sooner, look out for loans that don't charge a penalty fee for early repayments.
- Repayments. Many small payday loans have repayments that line up with the borrower's pay frequency. So if they get paid fortnightly, the customer will be required to make repayments every two weeks.
- Fees. Most payday loans charge an establishment fee and a monthly fee. For loans up to $2,000, the establishment fee is capped at 20% and the monthly fee is capped at 4%. If you fail to pay your loan on time or default on the line of credit, you'll also be charged fees. Default fees vary between lenders but the maximum that can be charged is twice the total amount (or 200%) of the loan. Before you sign the credit contract, confirm what fees apply if you miss a repayment.
- Turnaround to receive loan. If approved, many lenders will fund the loan within an hour or 24 hours. Most lenders have a cut-off time (usually between 2pm and 4pm) which you need to apply by and are approved before to receive the funds on the same day. Many lenders also only deposit loan amounts on business days, which is important to note if applying on a Friday or the weekend.
What to check before applying
Most payday lenders allow people to apply online, but you should check the eligibility requirements before applying. The eligibility criteria for these small payday loans will differ between lenders. Generally, you will need to be over the age of 18 and be a permanent Australian resident.
While some small payday lenders don't perform credit checks or will consider people with bad credit, applicants still need to prove that they receive regular income and can pay the loan back on time. Even if the lender doesn't perform a credit check, it's important to remember that any application for credit (whether approved or not) will be listed on your credit report and could impact your credit score.
Some lenders accept Centrelink payments as a form of income, but it usually can't make up more than 50% of your total income. Make sure you check that you meet the specific eligibility requirements of the loan you're considering before you apply.
Payday loans are an expensive way to borrow money so it's important to compare your options, ensure you can afford to repay it on time and check the eligibility requirements before making your decision.
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