Fast loans are those loans that are transferred into the borrower’s bank account as soon as they have been approved by the lender. Although every lender has a different loan processing time, fast loan providers usually ensure transfer within minutes of approval. Still, it may take a longer time for the loan amount to reach the borrower’s bank account, as banking channels can potentially delay the transfer due to procedural limitations.
People usually require fast loans because they need access to funds quickly to cover emergency unplanned expenses. Mostly, borrowers of fast loans don’t have enough savings of their own or any other sources of funds such as friends and family, and hence a fast loan is the only available option to them in times of dire financial need.
What Are Fast Loans?
Fast loans provide instant financial relief to cash-crunched individuals and families looking for a quick source of funding to meet their immediate expenses.
Luckily, there are numerous lenders in Australia that are providing fast loans. Many of these lenders are providing loans between the amounts of $300-$10,000. Since a key feature of fast loans is their expedited process, most lenders require borrowers to use their online application forms to apply for a fast loan. If the application form has been submitted correctly, applicants can expect to receive their fast loan within 24 hours of the loan approval decision.
Availability of Fast Loans
Most fast loan providers are operating online, although some have both online and offline operations. The easiest way to access a fast loan service is by going on a fast loan broker/lender website and submitting the online application form. If applying through a broker, the application is sent to a number of suitable lenders for approval. Once approval has been given, the lender releases the funds within minutes.
Usually, to apply for a fast loan, lenders require borrowers to submit their ID details, information about their active bank account including six-month trailing bank statements, and any other evidence deemed necessary by the lender.
When Should You Take Out A Fast Loan?
Fast loans should only be considered at times when the borrower has exhausted all other readily-available funding options. Since fast loans offer quick processing times, lenders do charge a premium on them compared to many other types of personal loans.
Some of the most common instances when borrowers seek fast loans in Australia include:
- Paying for travel expenditure
- Covering for utility bills
- Repairs of their vehicles
- Funding a rental bond
- Covering costs arising from medical needs
- Affording new furniture
- Paying for expenses incurred on moving houses
Naturally, this list is non-exhaustive and can include any expenses that must be incurred, and that cannot be covered due to a shortage of funds.
What Are The Eligibility Criteria To Apply For A Fast Loan?
Since fast loans carry a small value, the risk for the lender is low. Also, lenders don’t have the time to sift through detailed pieces of information to evaluate every borrower. Hence, lenders prefer to use hard data to assess every borrower’s affordability.
Most lenders require their borrowers to meet the following criteria. Applicants must:
- Be over the age of 18
- Hold an Australian PR or citizenship
- Prove the inflow of a regular income at least over the three months prior to filing the loan application
- Own an active mobile number as well as an email address
What Information Is Required To Apply For A Fast Loan?
Applicants should have the following documents handy before applying for a fast loan in Australia:
- Contact information
- The reason why the loan is being sought
- Information pertaining to the borrower’s bank account including statements
- Any MyGov information, if available
- Information pertaining to the borrower’s employment and income.
Tip: Gathering this information beforehand can make it easier to file the loan application as quickly and completely as possible.
How Much Does A Fast Loan Cost?
The rates and charges applicable to fast loans vary by amount. For loans between:
The available loan term is up to 12 months. Lenders may charge as much as 20% in establishment fee and 4% as a monthly fee. For example, for a loan amount of $1,000 to be repaid over a 6-month period, borrowers can expect to repay as much as $1,440 in 25 installments paid every week. The weekly installment amount would be $57.60 in this example.
The loan term can be anywhere between 13 months to 24 months. Lenders may charge a fixed APR of around 48%, with a comparison rate of around 67.4% per year. This means that a loan of $3,000 borrowed for a period of 18 months with 78 weekly installments would cost $1,779 to the borrower, with each weekly installment amounting to $61.27.
Loans within this range are likely to be offered for a 13-24 months loan term, with a 21.24% APR and 48% per year comparison rate. For someone borrowing $10,000 with a loan term of 24 months, total repayments would amount to $15,577.12 split across 104 installments of $149.78, each.
Applying For A Fast Loan
Consider the following when applying for a fast loan.
- Check eligibility
Not all borrowers are eligible for a loan with every lender. Hence, checking the lender’s eligibility criteria before applying can save borrowers some precious time.
- Check the required documents
Some documents can take a bit longer to gather, and you may not have that much time. So, if a lender is asking for documents that are not readily available, maybe a different lender would be a better option.
- Does the lender offer an online application
Lenders that don’t have an online application process may take longer to approve the loan and/or disburse the loan amount.
- Does the lender provide an approval decision within minutes of filing the loan application?
Fast loan providers usually give out a loan approval decision within a couple of minutes after the borrower has submitted the loan application.
- Are the funds disbursed into a bank account or given out in cash?
Banks can cause delays of up to two business days before the funds reach the borrower’s bank account, even if the lender releases the funds a few minutes after approving the loan. If you require funds immediately, perhaps a lender that disburses loans in cash might be a more suitable option.
Tip: Understanding the costs associated with fast loans is necessary as they can be rather costly. Make sure you have considered all alternatives before applying for a fast loan.
How quickly will my lender disburse funds after approving a fast loan?
Lenders can disburse funds in as little as 30 minutes, however, it may take longer for the funds to reach your bank account due to procedural delays.
Can I get the loan amount in cash?
Lenders that also provide in-store services may be able to give out loans in cash. However, most lenders need a bank account to disburse the loan.
What is the maximum I can borrow as a fast loan?
The maximum that can be borrowed in Australia as a fast loan is typically under $10,000.
Can I get a fast loan with bad credit?
Yes, many fast loan providers are payday lenders. Payday loans are famous for their high probability of accepting loan applicants with a bad credit score.