If you need money right now to pay bills or other expenses but you don’t have enough funds, you can apply for a cash loan. Cash loans are small, short-term personal loans with minimal paperwork. You can even get one fast, sometimes without leaving your home. Generally, to be eligible for a cash loan, you need to be over 18 years old, be a permanent Australian resident, and have a regular income.
The following looks at how you can apply for a cash loan:
Choosing the right loan provider
When looking for a loan provider, ask your family or friends if they know a reputable lender who offers cash loans to people in a similar situation as you. On the other hand, you can simply search the internet for an appropriate lender. Make sure to compare different lenders and their offers before picking one that best suits your needs and personal circumstances.
Understanding loan costs and terms
It’s important to read and understand the terms and conditions of a loan. Cash loans tend to have a loan term of 2-4 weeks, taking into account the normal pay period of a typical Australian worker, so you can pay back the loan when you get your next paycheque.
However, if you need more than 4 weeks to pay back the loan due to an emergency, just let your lender know about your financial circumstances and they’ll be more than happy to negotiate. A cash loan for your business, vehicle or home can have a loan term of up to 12 months, and your car or property will be put up as collateral for the loan.
Before you apply for a cash loan, take note of the annual percentage rate (APR) offered by lenders, as well as the interest rates, credit costs and fees. Check the headline interest rates and the total cost of the loan in the long term. Paying low interest rates for a long repayment period is more expensive than paying high interest rates for a short period.
Applying for a cash loan is quick and easy. All you need is access to the internet and a mobile phone, as the process usually involves an online application with some verification done by phone. Go to the website of your chosen cash loan provider and select the loan amount and term, which should give you the total cost of the loan.
After you click the ‘Apply Now’ button, you will be asked for your personal and banking details, including your account number and the name of your bank. Upon receiving the application, the lender will undertake a credit check with a reporting agency and then let you know whether your application was successful or unsuccessful.
If you’ve been pre-approved for a cash loan, you’ll have to provide a copy of your bank statements from the past three months and your current income details via fax or email. This will allow the lender to conduct an assessment of your short-term cash loan before giving you a final approval.
Finally, the application may be confirmed via SMS, phone call or email. The cash will be transferred electronically to your chosen bank account via direct debit. All of this should take no more than 15 minutes.
If you’ve already applied for a cash loan before, then applying for another one should be much easier. Some lenders will have provided you with an account, so you can fill out an application form quicker. If your personal circumstances have changed, inform the lender of the changes to ensure a smooth application process.