About Fair Go Finance
Fair Go Finance is a personal loan provider operating in Australia with loans available between the amount of $500-$10,000 for a term spanning 3-36 months. The lender is part of a larger group called Skybound Capital, which is a wealth management business operating around the globe. As per the lender’s mission statement, it is focused on empowering people by providing necessary financial support. The lender acquired Capfin in 2018.
Fair Go Finance provides personal loans that are split across three categories based upon the loan amount. Loans between $500-$2,000 are called Small loans, between $2,001-$5,000 are Medium loans, and between $5,001-$10,000 are called Large loans. Each category of loans has distinct features, as highlighted hereunder.
|Small Loans||Medium Loans||Large Loans|
|Average Term||5 months||8 months||24 months|
How Much Does A Fair Go Finance Loan Cost?
The lender charges variable rates depending upon the relationship it has with customers. For new customers, the minimum applicable interest rate is 17.9% per year (comparison rate is 23.20% per year), while for existing customers the minimum rate is slightly lower at 15.20% per year (comparison rate is 19.93% per year). These comparison rates have been calculated considering a loan amount of $10,000 taken out for the maximum allowed loan term of 3 years.
The maximum interest rate that the lender will charge is 29.9% per year (comparison rate of 53.12% per year). This comparison rate has been calculated considering a loan amount of $2,500 taken out for the loan term of more than 2 years.
Also, the interest rate varies with the credit rating of the borrower, with those having higher credit scores charged a proportionally lower rate and low scores a higher rate. For example, for those with an Indicative Veda Score (IVS) of over 600, the comparison rate is 23.55% and they are typically allowed to borrow up to the maximum $10,000, while those with scores between 400-600 get charged 30.05% comparison rate with typical loan amounts of up to $7,000, and those with scores under 400 getting the maximum 53.12% comparison rate and typical loan amounts up to $5,000. (The assumptions about comparison rates, as quoted above, apply to these rates as well).
Small loans charge an establishment fee between 10%-20% and a monthly fee of 2%-4% of the loan amount. Medium loans have an establishment fee between $360-$695 and a monthly fee of $5, and Large loans have a $360-$460 establishment fee and $5 monthly fee. Both the Medium and Large loans also charge an interest rate of 17.9%-29.9% (a comparison rate of 36.64%-53.12%).
The following table illustrates the amount you would have to pay if you borrow from Fair Go Finance.
|Loan Type||Loan Amount||Loan Term||Total Repayment|
|Small Loan||$1,500||9 Months||$1,950|
|Small Loan||$2,000||12 Months||$2,720|
|Medium Loan||$4,000||12 Months||$4,949.25|
|Large Loan||$8,000||12 Months||$9,511.44|
|Large Loan||$10,000||36 Months||$13,841.60|
Pros and Cons
The following pros pertain to the loan services being offered by Fair Go Finance:
- All information, including costs, are clearly mentioned on the lender’s website
- Existing customers are charged lower rates compared to new customers
- The lender allows a loan term of up to 3 years on large loans, which is more than is being offered by many other lenders
- Accepts applicants with a bad credit score
- Adjusts loan costs with the borrower’s credit score
- Offer free credit report
- Offers loan amounts of up to $10,000
- No early repayment fees
Fair Go Finance loan services have the following cons:
- High establishment fees
If I fulfill the eligibility criteria, do I automatically qualify for a Fair Go Finance loan?
Not necessarily, as the lender will verify the information you provide in the application form, including bank statements, and conduct an affordability assessment to ensure you qualify for a loan.
How much can I borrow from Fair Go Finance?
You can borrow any amount between $500-$10,000, depending upon your affordability.
Does Fair Go Finance accept applicants with a bad credit history?
Yes, the lender accepts applications from those with a bad credit score.
Does Fair Go Finance conduct a credit enquiry?
Yes, and this enquiry will remain on your credit file for some time. A high number of credit enquiries on a credit file can impact a borrower’s chances of securing a loan.
The lender requires its applicants to fulfill the following eligibility criteria. Applicants must:
- Be over the age of 18
- Be living in Australia as a citizen, a permanent resident, or on a work/sponsor visa.
- Have a weekly income in excess of $500 that should not entirely compose of Centrelink payments.
- Must not have filed a declaration of bankruptcy in the past 12 months.
- Must have employment, although this can be part-time, casual, or full-time.
In addition to the abovementioned conditions, the lender also takes an applicant’s credit score while making a loan approval decision. Those with a score of over 650 stand a good chance of securing a cheap loan, while those with scores between 450-650 would need to have satisfactory financial standing to qualify for a range of options. For those with a score under 450, the lender is still likely to have loan options, although the rate charged would probably be higher.
Fair Go Finance has a page dedicated to feedback and complaints on its website. Complaints can be filed online on this page and usually receive a response within 24-48 hours if filed during business days. Another way to file complaints is through fax, and customers can do this by faxing the fax complaint form at 1800 324 746.
Customers can check the status of their complaint by either calling at 1300 324 746 or sending an email at [email protected].
To apply for a loan with Fair Go Finance, applicants need to follow these steps.
Step 1 – Apply online
Log on to their website and click on the Apply Here button on the top right corner of the screen, as shown in the image below.
If you are an existing customer, simply login to your account and apply from there. New customers need to fill out the online application form (shown below) and submit it to be considered for a loan.
Make sure you have all the required information, including income/expense details, in order to fill out this form. Once you complete the form, submit it and receive a response within minutes.
Step 2 – Await the decision
The lender verifies your details on the phone and after all other checks have been completed and if you qualify, it will deliver an approval decision.
Step 3 – Receive the funds
Once approval has been given, borrowers need to sign the contract and send it back to Fair Go Finance. Upon receipt of this agreement, the lender disburses the funds very quickly, and these funds reach the borrower’s bank account overnight.