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Short Term Loans for Australians

Everything you need to get a short term payday loan right here!

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Short Term Loans: What are they?

To put it very simply, short term loans are small loans (less than $2,000) offered for a period of less than 30 days (can vary in some cases).

Short Term Loans: Who can apply?

Every Australian citizen who is 18 years of age or older, and has a regular source of income (job, benefits, passive income etc.) is eligible to apply for and receive short term loans.

These are generally sufficient conditions. Non-Australian citizens can also get short term loans if lenders find their applications satisfactory.

Short Term Loans: What are the advantages?

There are many advantages of getting a short term loans, especially if you are employed. These include:

Short Term Loans vs Bank Loans

The differences between short term loans and bank loans couldn’t be starker.

Short Term Loans Bank Loans
Loan Amount Up to $2,000 Indefinite
Loan Term Up to 30 days (can vary) Indefinite
Interest Rates Relatively higher Relatively higher
Regulator ASIC ASIC, RBA
Eligibility Criteria Very broad, easy to be eligible Stringent, difficult to be eligible
Collateral/Securities Not required Required
Availability Instant (same day) Takes weeks for the funds to be available

Common Situations that People Need Short Term Loans In

There are many situations that short term loans are‘tailor made’ for. Some of these have been listed below:

Types of Short Term Loans

There are various types of short terms loans. These are much similar, except for some minor differences.

Short term loan durations

Short term loan durations vary, depending upon the type of the loan.

Short Term Loan Interest Rates

If there is any downside to a short term loan, irrespective of its type, it has to be the interest rate applicable.

Interest rates for short term loans are relatively higher than corresponding loans made available by banks or credit unions.

One way of looking at these high interest rates is the ‘cost of convenience’ associated with most short term loans, especially no-securities and bad credit loans such as payday loans.

Currently, a typical payday lender can charge a maximum of 4% term interest on any payday loan, in addition to a fixed establishment fee of 20% of the loan amount.

Short Term Loans for Small Businesses

We overviewed various scenarios that short term loans can be useful in for personal finances. Similarly, for small businesses, short term loans can be a very helpful resource to make sure that the business is always cash positive.

Some common difficulties faced by small businesses include delayed payments from customers or clients, non-payment of services, delays in funds getting cleared, lock-in period of funds etc.

In such events, lack of availability of cash can adversely affect the future of the business. To avoid this, small businesses can use short term loans to stay afloat until the invoices get paid and funds get cleared.

Things to Keep in Mind before applying for a short term loan

Short term loans are best treated as temporary solutions as well as reminders to make enough provisions to avoid having to confront similar situations again.

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