“Short Term Loans” are defined in the NCCP as being for 15 days or less and no licensed credit provider in Australia can offer these to consumers.
Viva Payday Loans provide services for Small Amount Credit Contract loans, for 16 days up to 1 year.
|SACC Loans||Bank Loans|
|Loan Amount||Up to $2,000||Varies but usually more than $2,000|
|Loan Term||Up to 1 year (can vary)||Varies but usually longer than 1 year|
|Interest Rates||No interest but credit charges of 20% establishment fee and 4 % monthly fee will produce a much higher comparison interest rate than 48% per annum.||Cannot be higher than 48% per annum|
|Regulator||ASIC||ASIC, RBA, APRA|
|Eligibility Criteria||More flexible than banks||Stringent, difficult to be eligible|
|Collateral/Securities||Not required||Often Required|
|Availability||Quicker than banks, often the same or next business day||Takes weeks for the funds to be available|
There are many situations that short term loans are ‘tailor made’ for. Some of these have been listed below:
When you are running low on credit with a poor credit score to boot, something as mundane as paying bills can become a difficult task to deal with. Paying bills on time is important as defaulting on bills may mean that you stop receiving those particular services.
In addition, unpaid bills attract steep fines which can further worsen the whole situation. If you use credit cards for paying bills, unpaid bills can quickly consume your credit limit, in turn causing further damage to your credit score.
That’s why, getting a small, short term loan to pay bills makes sense. You can get your bills paid off for the month and then repay the loan when your next payday finally arrives!
Holidays are meant to be the cheeriest part of the year and without any doubt, bad credit or lack of availability of cash shouldn’t really have to make you lose out on them.
If you are facing stiff shortage of cash during holidays, you can simply turn to short term loans to bridge the deficit, only to be paid back in the New Year!
There are some months when due to unforeseen reasons, your paycheque invariably gets delayed. A delayed paycheque, in turn, means that you are unable to pay for all the bills and groceries for the next months. To get out of such tricky situations and to manage the flow of cash better, short term loans can be quite useful.
Unexpected medical expenses can easily break down your whole monthly budget. If you come across such expenses, you can manage them with a short term loan so that the rest of your budget for the month doesn’t get disturbed.
SACC loans are best treated as temporary solutions as well as reminders to make enough provisions to avoid having to confront similar situations again.