Sometimes you just need a bit of extra money to see you through. This is where a small personal loan comes in.
No two financial situations are the same. Loans are available in all sizes, with types to meet all credit needs. If you want to finance a furniture purchase, emergency expense or even holiday expenses, you might want to consider a small personal loan.
Sunshine Short Term Offer
This is a short term loan offer with a fast and easy online application for bad credit borrowers who are employed. You can apply today to get approved for up to $2,000.
- Loan Amount: $2,000
- Loan Term: 9 weeks
- Turnaround Time: 30 Minutes - conditions apply
- Total Cost of Borrowing $100: 20% of borrowed amount + 4% of borrowed amount each month
- Bad credit borrowers OK
- Quick and easy Approval
- No Credit Checks - Must be employed
A range of small personal loans you could apply for
Warning about Borrowing
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.
What exactly is a small personal loan?
A small personal loan is a form of credit that is between $100 and $2,000. These loans differ from regular personal loans in that they usually have shorter loan terms and they are offered with more flexible lending criteria. They are offered by non-traditional lenders.
It’s important to note that most personal loans from banks, like the ones in the table above, have a minimum borrowing amount of around $3,000 to $5,000.
Your small loan options
If you’re looking for a small personal loan there are a few different types you can choose from, all of which are designed to meet different needs.
- Payday loans.
These are small, short-term loans that are used to cover expenses which come up before payday. These loans may be an option for people who have negative listings on their credit file as the eligibility requirements tend to focus on your income and your ability to pay back the loan rather than your credit history.
- Overdraft facilities.
An overdraft gives you the option of withdrawing more money than you have available in your account. The amount is generally quite small, usually between $100 and $1,000 and you will be allowed to overdraw up to a pre-determined amount with set fees and rates.
- Lines of credit.
A line of credit is similar to an overdraft facility, but the credit line isn't attached to your transaction account and you may be able to borrow more money. You are able to withdraw up to a set limit at a set rate and you will only be charged the rate on the amount you withdraw.
- Cash advance.
A cash advance involves withdrawing money from your credit card. This type of credit starts accruing interest straight away, usually in excess of 20% p.a. Learn more about cash advances here.
How can you compare small personal loans?
Small personal loans work in much the same way as other types of personal loans in that you are charged certain fees and rates in order to borrow money from a lender. Small personal loans do have a few key features which are outlined below that can be used in your comparison:
- What are the fees you'll be paying?
Lenders will charge a range of fees for you to borrow. Check for upfront fees such as establishment fees and ongoing fees such as annual or monthly fees. Other fees, such as those charged for early repayment, may also apply.
- What loan terms are on offer?
Traditional personal loans are lent for loan terms as long as seven years, whereas small personal loans are usually lent for terms of between 16 days and one or two years. Check what terms are on offer to find a repayment term that works for you.
- How much can you borrow?
A small personal loan can range from loan amounts as little as $100 to as much as $2,000. Lenders will differ on how much you can borrow, so ensure you will be able to borrow the amount you need before settling on a lender.
- How can you apply?
As these loans are smaller and for shorter terms, most lenders operate online and provide quick loan applications. Some lenders are able to offer instant approval and can have the loan amount transferred to you within 24 hours. When you apply you will need to provide personal and financial details.
- How much will your repayments be?
Depending on the type of loan you choose, the lender may offer different repayment options. Some lenders may arrange your repayments in line with your income frequency and amount. Other lenders may offer other repayments features such as additional repayments or redraw facilities.
Things you should try to avoid
When applying for a small personal loan you should calculate the fees and rates to determine your repayments and see if you will be able to afford them. You should also consider the necessity of the loan—if it’s not for an expense you need urgently, it may be worth trying to save the amount rather than taking out a loan.
- Getting into too much debt
When considering applying for a small loan, it's important to asses your financial situation first and ask yourself whether you really need the loan. If you are applying for the small loan to pay bills or rent - ask your utility provider or landlord if you can have extra time to pay. You might also be able to set up a payment plan.
- Making too many applications at once
Remember, each application you make for finance, is listed on your credit file. Too many listings can look bad and show a profile of risk. If you are seeking a loan, it's good practice to not apply with every company you find. Keeping your credit file respectable may help you secure a loan.
Benefits and drawbacks of small loans
- Quick access to funds. You'll benefit from getting a quick turnaround time on your loan. Some short term loan brands offer 60 minute turnarounds (of course, conditions do apply)
- Borrow only what you need. If you only need a small amount of cash then you won't want to be locked into thousands of dollars of debt. Borrowing under $1,000 may be more financially feasible.
- Set repayment periods. When you use a small loan, your repayment period will generally fall on your next payday. If you are able to stick to a budget you could manage your repayments on time.
- Higher fees. Because small personal loans are offered over a shorter period of time, the fees and charges are often higher. This is to protect the lender in the event of default or late payment.
- Limited range of lenders. Depending on your credit history and income, you may have a limited selection of credit options. It's always important to compare your options before applying.
How you can apply online
Compare your small personal loan options using the comparison table. Once you have found a loan you want to apply for, click the "Go to site" button. This will securely take you through to the lender’s website where you’ll be able to fill out an online application form and provide personal and financial details.
Some lenders offer instant approval and some may have the loan amount deposited in your account within 24 hours. To be eligible for a personal loan you generally need to be over the age of 18 and be a permanent Australian resident.