An urgent cash loan can help when the unexpected happens. This could be an illness or injury, expensive car repairs or just a short-term cash flow problem when several unexpected bills drop into your inbox at the same time. These type of short term loans should only be used in emergencies since they can come with expensive fees and interest rates.
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.
⚠️ 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.
How does an urgent cash loan work?
An urgent cash loan is a short-term loan, designed to provide the funds people might need in an emergency. The money can be used for just about any purpose, from urgent car repairs to paying essential bills, and usually must be repaid during a term ranging from 16 days up to one year. Although a good credit history can make it easier to gain loan approval, some lenders are also willing to offer urgent loans to borrowers with bad credit.
There are three types of urgent loans available to Australian borrowers:
- Short term loans. Also known as ‘payday loans' are loans between $100 and $2,000. They are usually paid back in line with when someone receives their regular income. These loans come with fixed fees that are regulated by the ASIC (Australian Securities and Investments Commission) and consist of an establishment fee of no more than 20% of the loan amount and a monthly fee worth 4% of the loan amount.
- Unsecured short-term loans. These types of personal loans do not require loan applicants to offer any asset as collateral for the loan. Usually available with a minimum loan term of one year, unsecured loans with shorter terms require customers to meet strict lending criteria. They also may come with higher interest rates and fees than secured loans.
- Secured short-term loans. Secured personal loans allow customers to borrow up to $10,000 when they offer an asset, for example their car or home equity, as security. Because there is less risk for the lender, secured loan applicants can typically access lower interest rates and fees.
Sunshine Short Term Loans
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This is a short-term loan offer with a fast and easy online application for good or bad credit borrowers. You can apply today to get approved
for up to $2,000. Get your loan funded in 30 minutes - conditions apply.
- 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
- Bad credit applicants considered
- Fast approval service
- Borrow up to $2,000
Loans to compare today
Pros and cons of urgent cash loans
Before deciding whether an urgent loan is the right solution for someone's financial problems, they should consider the benefits and drawbacks of this finance option carefully.
- Fast application and approval. As these loans usually involve borrowing a small amount for a short period, many lenders offer fast and easy online applications. Some lenders can also offer instant loan approval and transfer the funds into a successful applicant's bank account within one business day.
- $100 - $10,000 in funding. Payday loans can be beneficial for people who only need a small amount of money to cover them until next payday, or for people requiring larger sums. Typically, payday loan amounts range from $100 up to $2,000. However it may be possible to borrow more, with amounts of up to $10,000 available from some lenders.
- Bad-credit borrowers accepted. A bad credit history won't necessarily prevent people from getting an urgent loan, as some payday and personal loan lenders are willing to offer finance to bad-credit borrowers.
- Fees. Short-term loans don't charge interest, but instead charge fees. Look for establishment fees, ongoing monthly fees and default and late payment fees when comparing loans.
- Expensive. Short-term loans, especially payday loans, have high fees and are more expensive than traditional personal loans. Even if someone is only borrowing a small amount, the total cost to repay their debt in full will likely be much larger.
- Can be risky. The high cost of an urgent loan can actually end up leading some people deeper into financial difficulty. The payday lending sector is also notorious for attracting unscrupulous lenders, so prospective applicants need to carefully read the terms and conditions before applying for a loan.
Things to avoid about urgent cash loans
In the case of financial emergencies, urgent loans can be of use to people. However, prospective loan applicants should be aware that some short term loans can in some cases do more financial harm than good. So, for those considering a short-term loan it is always a good idea to compare options and alternatives thoroughly before submitting an application.
Risks attached to urgent loans include:
- Taking on too much debt. If someone is already in debt, borrowing even more money may not be the best solution to their financial problems. Applicants should make sure that they are aware of all the risks associated with taking on additional debt and that they can afford to repay whatever it is that they borrow.
- Applying for too many credit products. Applying for multiple credit products in a short space of time can have an adverse affect on a person's credit file. Keep applications to a minimum and only apply for loans that offer a good chance of approval.
- Short repayment terms. Customers will typically have between 16 days and 1 or 2 years to pay back the money that they borrow. Before applying for a loan, customers need to be certain that they will be able to repay the full loan amount plus any interest and fees within the specified time frame.
- Missed repayment penalties. One final risk that loan applicant's should be aware of with urgent loans is that lenders usually impose strict penalties if someone misses a repayment. Missed repayment fees can be substantial and could lead people further into debt.
How to apply for an urgent cash loan
Many urgent cash loan lenders offer online applications to make it as quick and easy as possible to apply for a loan. Loan applicants will need to check that they meet a number of personal loan eligibility criteria before applying, such as:
- At least 18 years of age
- A permanent Australian resident
- In paid employment or Centrelink payments and earn a minimum income
For people who meet this criteria, they can apply online by supplying:
- Their name, date of birth and contact details
- Proof of ID
- Recent payslips and bank account statements or internet banking details
- Information about their income, employment, assets and liabilities
Loan applications are typically assessed quickly, with some lenders transferring the loan funds into someone's nominated bank account within 24 hours.
Frequently asked questions about urgent cash loans
There are several viable options to choose from for people who need money in an emergency. However, prospective applicants should make sure that they closely consider each potential urgent loan option to ensure that the loan you choose is a good fit for their financial situation.