Small loans are defined by the lower amounts of cash they cover, which typically falls between the $100 to $2,000 bracket. They can be used for a variety of reasons, including home improvements, paying for emergencies, debt consolidation, and so much more. As the loan amount is small, the loan term is usually short term too, with lending criteria set by lenders also being relatively flexible.
At Viva Payday Loans, we offer a lender finder service across our panel of 15+ lenders to provide the right small loans to suit you. Whether you need the cash to cover a temporary financial issue or to pay for a large expense, we can help you to find a lender that offers the ideal amount and term length for your situation. Apply for small loans online today or view our information below to make sure they are the right choice for you.
Note: Viva Payday Loans is a lender-finder service in Australia, we do not offer financial advice. Please consider seeking independent legal and financial advice to check how the information and ideas presented on this website relate to your unique circumstances.
What Are Small Loans In Australia?
Small loans are characterized by their small amounts of cash and flexible repayment terms, usually up to 12 months. Small loans in Australia are usually offered between $100 to $2,000, so they can be used for a range of things, including large one-off purchases, unexpected emergencies, or healthcare. Most of the time, you will not need to disclose how the money will be used, allowing you to use small instant loans however you see fit.
Small loans online are usually unsecured personal loans, which means they are not secured against a high-value asset, such as a house or car. However, this means that they may carry higher interest rates than other types of loans. By browsing online to make comparisons or using a lender finder service like Viva Payday Loans, you can find the best quick small loans with interest rates to suit your budget.
What Are The Available Options For Small Loans In Australia?
There are a large number of options for small loans in Australia, offering borrowers a variety to choose from and the opportunity to find a loan type that fits their needs. Some of the options include:
These are quick small loans available with a short loan term, usually up to an applicant’s next payday. Providers of payday loans may be able to approve loans for borrowers with bad credit, as many lenders will assess overall affordability for the loan as opposed to relying solely on a credit check to make a final decision. With this type of loan, lenders typically require borrowers to have an adequate source of regular income, but applicants may still be subject to a credit check upon application. If you see small loans with no credit check advertised, these should be approached with caution. Lenders have a duty of responsibility to ensure applicants can make repayments, so a credit check is always needed.
A Bank Overdraft
While these are not advertised as small loans, overdrafts function in a similar way. An overdraft facility is usually offered by banks to their customers who are already maintaining an account with them. This service allows customers to withdraw funds in excess of the available balance in their account. The amount that is overdrawn usually needs to be repaid fairly quickly as it will start to gain interest. Generally, banks allow amounts of up to $1,000 to be withdrawn as part of their overdraft facility.
A Credit Line
Credit lines share similar features to bank overdraft facilities, with the exception that it is managed through the opening of a dedicated account by the bank. A credit line offers applicants the ability to choose the amount that they would like to set for their spending limit. They will only need to pay interest on the money that they withdraw from their credit line, so if they do not withdraw, they will not need to pay interest. The borrowing limits and applicable rates are defined by the bank at the opening of the credit line.
Credit cards offer customers the ability to take out a cash advance on their cards, usually fixed at a specific cash limit. Cash advances typically come with a high interest rate of more than 20% per year, which is to be charged on a daily basis from the day that the cash is withdrawn.
Loans For Those With Good Credit
Some lenders offer small loans in Australia to borrowers that have a good credit history, usually with cheaper rates and charges compared to other small loan options.
What Are The Pros Of Small Loans?
There are several pros associated with small instant loans, which can make them attractive to some applicants:
- Quick processing time – if you need small loans with fast approval times, there are many lenders online to help. As small loans are usually designed for emergency situations or those in need of quick cash, many lenders may aim to offer fast lending decisions and cash transfers. At Viva Payday Loans, our lenders may send the cash within 60 minutes of approval, depending on if your bank accepts fast transfers.
- The ability to borrow only as much as needed – small loans online have a limit to the amount you are able to borrow, with the smallest loans starting at $100 or less. You can borrow only as much as is needed to cover your expenses, so they can be helpful in ensuring you are not overcommitting yourself when borrowing.
- Flexible repayments – small loans repayment dates can be set after the applicant’s payday to avoid any inconvenience.
What Are The Cons Of Small Loans?
If you are looking for small loans with fast approval, there are some disadvantages to consider before applying:
- Relatively high fees – since small loans in Australia are mainly unsecured loans, the risk for the lender is high. This means the rates and fees charged by the lender may also be high to cover the associated risk.
- The limit on loan amounts – small loans are defined by the low cash amounts that they offer, so if you need an amount over $2,000, you may struggle to find a small loan that caters to your needs. You might benefit from using a larger personal loan instead.
- Trusting online lenders – while there are many quick small loans lenders online, finding one that is reputable and trusted is imperative. Make sure you look for accreditation and reviews and approach any lenders that offer small loans with no credit check with caution.
At Viva Payday Loans, we are partnered with a panel of 15+ trusted lenders to help you find small loans fast. We will assess your application to approve, then compare your needs against our panel to find a small loans solution that suits you. While we do not have control over the decisions made by the lenders on application, we will aim to match you to a lender who is best suited to your needs. If you have any more questions about our lender finder service, please do not hesitate to get in touch with us.
Are You Eligible For Small Loans Online?
To apply through Viva Payday Loans for small loans online, we only ask that you are at least 18 years old. However, our panel of small instant loans lenders may require you to meet a series of factors within their eligibility criteria. This criteria may differ between lenders. There are some common requirements across small loans in Australia that you may see, including:
- Holding an Australian PR or citizenship
- Owning an active mobile number and email address
- Being able to provide proof of your income, whether from employment, Centrelink, or other government benefits
- Having three to six months’ worth of bank statements available, so that lenders are able to offer a loan that fits in with your current financial position
Submitting the incorrect documents in your application can delay the decision on your small loan with fast approval, so it is important that you submit them in the correct format.
Small loans can be a helpful option if you require quick cash when faced with a financial emergency or to consolidate debt. We do recommend that potential applicants take careful consideration into quick small loans and research lenders to find a reputable provider. Viva Payday Loans can help by offering a simple application process, which will allow us to assess your needs against our lender panel. This will help us to find a small loans solution that suits your needs and budget. If you are ready to find the right small instant loans online lender for you, please apply today.
If you require financial advice on managing your money, reducing your debt or planning for your future, visit MoneySmart.