There is a wide variety of loans and lenders in Australia that you can choose from. Depending on your needs and eligibility, there are options you can consider to best fit your financial requirements.
The Australian Securities & Investments Commission (ASIC) requires that all lenders, lessors, and finance brokers either hold a licence themselves or act as representatives of those who do.
ASIC also makes sure that banks, credit unions, and brokers don’t provide you with credit that you can’t pay back. They may also penalise financial service providers who misrepresent facts, mislead customers, or act unethically.
Before doing business with a credit provider, check their licencing status on ASIC Connect’s Professional Registers
How can Friendly Finance help you find a loan that fits your needs?
Here at Friendly Finance, our objective is to help Australian customers make informed financial decisions by offering topical content and valuable knowledge on the most popular consumer financing products. Friendly Finance also provides each visitor with a free, no-obligation loan search.
By collaborating closely with financial institutions to comprehend the needs of Australian consumers, we hope to establish ourselves as the most reliable source and one-stop shop in Australia for information and expertise on consumer finance.
Payday loans in Australia often range in amounts between $50 and $2,000, with repayment terms of 16 days to 12 months. They give clients the cash they require before receiving their next salary and you won’t need any collateral to obtain a payday loan, making the process of arranging one simpler.
Payday loans with no credit check give applicants with bad credit the chance to get authorised for financing. Borrowers may take out loan amounts from $100 to $2,000 that can be repaid between 16 days to 1 year.
Personal loans for those with bad credit are known as bad credit loans. The product may or may not be secured. Unsecured loans have amounts ranging from $500 to $10,000 and repayment terms of 13 to 60 months. Loan amounts for secured loans can range from $2,000 to $70,000 with terms of 1 to 7 years.
Quick loans are unsecured loans that have a turnaround time of 60 minutes to one business day, with loan amounts ranging from $100 to $5,000. The loan length normally depends on the total amount borrowed.
Instant cash loans can be up to $5,000 with terms ranging from 16 days to 12 months. Your current income levels and ability to repay the loan are used to determine your eligibility for an instant cash loan.
Same-day loans are loans that may be deposited into your bank account the same day that you apply for them. This type of financial product is very attractive when you need cash urgently.
Short-term loans range in value from $100 to $2,000 and can be repaid in as little as 16 days to a year. The processing period for a short-term loan may vary from 6 hours to 48 hours depending on the lender.
Emergency loans let you borrow a certain amount of money to cover an immediate expense. Depending on the loan type, the borrower can typically have the funds deposited into their bank account within 24 hours.
In Australia, car loans start at $2,000 and can go up to $75,000. You will also have a certain amount of time to repay the loan which can be from one to seven years, typically done in monthly instalments.
Student loans are a type of personal loan obtained from the government or a private lender to assist eligible students in covering the cost of higher education. It is not the same as scholarships and grants, as student loans function in the same way as other types of personal loans.
How Do Loans Work?
Principal, interest, instalment repayments, and term are the four main characteristics that all loans generally share. You can determine if a loan will meet your needs and whether you can afford to take one out by understanding each of these variables.
- Principal: This is the sum of money you borrow from a creditor or lender.
- Interest: The interest rate determines how much you must pay back on top of the principal. The type of loan you are applying for, how long it will take you to repay it, and your credit score are all taken into account by lenders when calculating your interest rate. The interest rate is not the same as the annual interest rate (p.a.), which also takes into account additional expenses including upfront fees.
- Instalment payments: Loans are typically repaid to the lender monthly. Usually, your monthly payment is fixed, so you always know how much will be deducted from your account each month.
- Term: The length of time you have to pay back the loan in full is known as the loan term. The length might range from a few weeks to several years, depending on the type of loan.
Secured loans and unsecured loans are the two main types of loans.
For secured loans, the lender often places a tangible item, such as your home or car, as collateral in case you are unable to repay the loan in full. The interest rate is determined by the asset, your credit history and score, and the lender. Generally speaking, secured loans have lower interest rates than unsecured ones.
Your interest rate for unsecured loans is determined by several financial factors, including your income, credit score, and total debt. The lender can sue you in court to recover the money if you don’t repay the loan as arranged. Nevertheless, it cannot seize any of your assets if you don’t. Also, the lender has the right to report the default to the credit bureaus, which will damage your credit rating and limit your future loan options.
Compared to secured loans, unsecured loans often have higher interest rates and lesser loan amounts.
You also have the option of applying for a loan with a fixed or variable interest rate.
With a fixed interest rate, both the interest rate and the instalments on your loan are set and unchanging. Your monthly repayment amount will be accurate and deducted from your bank account each month.
Your car loan repayments may change if interest rates change with a variable rate. You will have to make larger payments if interest rates increase. Your repayment obligations will also decrease if interest rates drop.