Cigno Loans is a short-term loan facilitator in Australia with loans of amounts under $1,000, although it is not a direct lender. Instead, it facilitates loans on behalf of BHF Solutions Pty Ltd, which is the originator of these loans.
How Do Cigno Loans Work?
Cigno loans are available for amounts under $1,000 and can be sought by submitting an online application form. As part of its loan evaluation criteria, Cigno considers the applicant’s affordability for the requested loan amount by assessing bank statements for at least the past three months. Once a loan has been approved, borrowers are required to pay 5% of the loan amount on the same day that the loan is disbursed.
Unlike many other short-term loan providers, loans acquired through Cigno have fixed repayment terms. All loans must be repaid within a 62-day period, with the first installment becoming due in 20 days after the disbursement of the loan amount. Repayment timelines are communicated to borrowers after they have been approved for a loan.
Cigno Loans have the following main features:
- The loan amount is capped at $1,000.
- After approval is given, the loan amount is disbursed on the following working day.
- Applications may be processed on the same day if filed before 5 PM EST.
Applicable Fees and Charges
Cigno applies fees on loans based upon the number of repayments. It is important to note here that Cigno Loans do not fall under the regulation of the National Consumer Credit Protection Act of 2009, hence applicable charges are unique to Cigno Loans. The following fee structure is applicable on Cigno Loans.
- 1 payment: 35% on the total loan amount
- 2 payments: 45% on the total loan amount
- 3 payments: 60% on the total loan amount
- 4 payments: 75% on the total loan amount
The following table shows the costs that borrowers can expect to bear on loans acquired through Cigno Loans.
|Loan Product||Amount Borrowed||Repayment Period||Total Repaid|
|Cigno Loan||$300||1 repayment||$405|
|Cigno Loan||$300||4 repayments||$525|
This table might not include all costs associated with a Cigno Loan. You should still make a thorough assessment of all costs applicable on the loan at the time of application, as Cigno provides a cost breakdown of the loan before formulating an approval decision.
Cigno also charges an ongoing account-keeping fee of $5.95 per customer.
There are also numerous other fees that may apply on a loan acquired through Cigno, most of which are applicable only if a borrower fails to make due repayments on time.
- Tracking for collections: $50
- Payment rescheduling: $30
- Change in date of payments or amount: $22
- Extension in the first repayment: $20
- Collections made through phone contact: $8.80
- Investigator/handover: $175 in addition to any legal fees incurred.
- Dishonored payments: first time $30, second time $50, third time $50, and final dishonored payment $79.
You can apply for a Cigno loan in two ways: by applying online or by contacting the loan provider BHF. An application filed through BHF may take longer to be processed, and the loan amount is disbursed through a cheque that is mailed to the borrower instead of an electronic transfer. Hence, applying online through Cigno is a comparatively faster process.
The following information and documentation are required by Cigno when filing a loan application:
- Personal information such as the borrower’s address, full name, marital status, and residency status in Australia.
- Valid contact information that belongs to the borrower, including email address and cell phone number.
- Bank statements of the borrower for the three months prior to filing the loan application. The bank statements should show the inflow of regular income. Cigno uses Credit Sense to acquire bank statements of the borrower.
- ID documentation that proves the borrower’s eligibility to apply for a loan.
Pros And Cons
The following pros apply to the services being offered by Cigno Loans:
- High probability of getting approved
Cigno facilitates loans sought to cover emergency expenditure, even from applicants who might not have a good credit history. Although it still conducts the required affordability assessments, customers have a high chance of securing a loan through Cigno.
- Focused application process
The application process only requires information that is necessary to evaluate a loan applicant’s eligibility and ability to repay the loan. This can save you a lot of time.
- Quick turnaround time
Loan applications are processed on the same day they are filed if submitted before 5 PM EST. The loan amount is disbursed on the following working day.
The following cons apply to Cigno Loans:
- Expensive loans
Since the loan approval criteria are easy, the perceived risk for the lender is also high. However, Cigno provides one of the most expensive short-term loans in Australia.
- Costs are not clearly defined
It is difficult to estimate the exact cost of a Cigno loan as it does not specify all applicable costs in a clear manner on its website. The absence of a loan calculator also makes it difficult for prospective borrowers to ascertain how much they would have to repay in total on a specific amount.
- The loan amount is limited to $1,000
Borrowers who require funds in excess of $1,000 must look elsewhere for a loan.
- Only one lender in its pool
Cigno is a loan facilitator, however, it only has one lender in its pool. You might find a better option through a loan facilitator that has multiple lenders in its pool, as there is greater variety and a higher chance of finding a loan option that suits your needs the best.
Is Cigno Loans a direct lender?
No, Cigno Loans is a loan facilitator that acquires loans from BHF Solutions for its customers.
How much does a Cingo Loan cost?
Cigno applies variable fees on a loan amount, depending upon various factors such as the number of repayments and the amount of the loan.
What happens if I default on a Cigno Loan?
Cigno has a list of charges it applies in case a borrower defaults on a loan obligation.
What is the maximum I can borrow through Cigno Loans?
The maximum loan amount that can be borrowed through Cigno Loans is $1,000.