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Lenders often have a quick application process, with some offering 60-minute loan approval for loans completed within business hours.
Small loans often amount to $2,000 and below with a loan term capped of 16 days to one year.
Loans below $2,000 often do not require any form of collateral for loan approval.
The establishment fees for small loans should not exceed 20% of the total amount borrowed.
The maximum monthly fees associated with small loans will not exceed 4% of the total loaned amount per month.
All charges to be imposed in the event of borrower default and late payment should not exceed 200% of the total loaned amount.
To better understand these fees, consider a specific example: Borrowing $1,000 over a 3-month period. This loan would incur a 20% establishment fee, amounting to $200. Additionally, there would be a monthly fee of 4% of the loan amount, which is $40 per month. Over the 3 months, this totals $120 in monthly fees. Therefore, the total fees and charges for this loan would be $320, leading to a total repayment amount of $1,320.
Loan Term Considerations: It’s important to note that the minimum loan term is 2 months, with a maximum of 12 months. Understanding the term length can help you gauge the potential costs over time.
Here at Friendly Finance, we aim to provide you the hassle-free experience in acquiring the funds you need.
It will take you less than 5-minutes to accomplish, and the process is 100% online. Skip the inconvenience of multiple loan applications. We’ll do the heavy lifting for you!
Once your application is received, we will search the market for your lender match and you will be notified immediately when they decide that they can offer you a loan.
Always review the details of your contract before signing. You have to make sure you understand all possible fees associated with your small loan.
You can use Friendly Finance to search for a small loan provider today. Through one application, we search our direct lender network to find you an eligible lender within minutes. Our search is free to use with no obligation to take out a loan if you are matched with a lender.
Bridging Paycheck Gaps
Sometimes, the end of the month feels a bit too far away. Use a small loan to bridge the gap between pay cycles, ensuring you can meet life’s demands without stress.
Unforeseen Expenses
Life is full of surprises, not all of them pleasant. Whether it’s a sudden medical bill or an unexpected home repair, a small loan can offer the support needed to handle these surprises smoothly.
Home Maintenance and Improvements
Whether it’s a leaky roof or a much-needed renovation, small loans can help maintain and improve your living space, turning your house into the home you love.
Celebrating Special Moments
From birthday parties to holiday celebrations, a small loan can help you create unforgettable memories with loved ones without financial stress.
Am I eligible for a small loan?
- Be an Australian citizen or permanent resident of Australia
- Be at least 18 years of age at the date of the loan application
- Currently receiving a regular source of income for at least 3 months
- The 3 most recent months of bank statements showing regular income and expenditure transactions.
- If you are receiving Centrelink benefits, the benefit should not exceed 50% of your monthly income
Small Loans: Frequently Asked Questions
Don’t see what you had in mind? You can reach out to us via our contact form or email us at info@friendlyfinance.com.au
How do repayment terms differ between small loans and payday loans?
When considering repayment terms, payday loans and small loans offer noticeably different approaches. Payday loans usually require borrowers to repay the full amount borrowed by their next paycheck, often within two to four weeks. This can create financial pressure as the lump sum is due quite rapidly, which might be challenging for some borrowers to manage.
In contrast, small loans provide a more extended repayment schedule. These loans allow borrowers to spread their payments over several months, resulting in smaller, more manageable installments. This approach can help alleviate financial stress, as it integrates more easily into monthly budgeting.
Key Differences:
Payday Loans:
Full repayment typically within 2-4 weeks.
Higher immediate financial burden.
Small Loans:
Extended repayment period over several months.
Smaller, more affordable installments.
Understanding these differences can empower borrowers to choose the loan type that best fits their financial situation and repayment capacity.
What is the difference between a small cash loan and a personal loan?
When choosing between a small cash loan and a personal loan, it’s crucial to understand the key differences to make an informed decision.
Loan Amounts:
Small Cash Loans: Typically range from $200 to $2,000. They cater to immediate, short-term financial needs.
Personal Loans: Generally available for larger sums, usually from $2,001 up to $50,000 or more. These are suitable for bigger expenses like home renovations or debt consolidation.
Repayment Terms:
Small Cash Loans: Often have shorter repayment periods, usually a few weeks to a few months. The focus is on quick repayment to cater to urgent financial requirements.
Personal Loans: Offer longer repayment terms, ranging from one to several years, providing more time to pay back the borrowed amount.
Interest Rates and Fees:
Small Cash Loans: While they offer quick access to funds, they often come with higher interest rates and fees due to the convenience and short term.
Personal Loans: Tend to have lower interest rates compared to small cash loans, reflecting the larger amounts and longer repayment terms.
Application Process:
Small Cash Loans: Generally have a simpler, faster application process with minimal documentation. This makes them a popular choice for urgent cash needs.
Personal Loans: May require more documentation and a thorough credit check, taking longer to process but often providing better rates based on creditworthiness.
Purpose:
Small Cash Loans: Ideal for covering unexpected expenses like medical emergencies or car repairs.
Personal Loans: Perfect for planned expenses, such as weddings, vacations, or educational costs.
In summary, the choice between a small cash loan and a personal loan hinges on your financial needs, the amount required, and how long you need to repay it. Understanding these differences can help ensure you select the right type of loan for your situation.
