Nowadays, in Australia, there are many types of loans provided by lenders such as banks, credit unions or other financial institutions. Among those cannot help but mention payday loans. Now, let’s find out how payday loans in Australia service are deployed like?

Payday loans in Australia
Payday loans in Australia

In some previous post, Info Credit Free introduced readers to the form of online loans in Brisbane and Perth. If readers are looking for these loans at Brisbane and Perth, you can learn the loans information through the links of the articles Online loans in Brisbane,  Online loans at Perth. Today, we provide information about payday loans in Australia.

PAYDAY LOANS IN AUSTRALIA

This our article includes the main four parts which are: “What are payday loans in Australia?”, “How to get payday loans in Australia”, “The interest of payday loans for in Australia?” and “The advantages and disadvantages of payday loans in Australia”

1. What are the payday loans in Australia?

Payday loans in Australia are personal loans designed to be taken out over a short period of time. The lenders providing these loans will extend high-interest credit based on the customer’s income and credit profile. Payday loans are arranged over days, so can be used as a stop gap until the customer’s wages arrive. Loans of up to $2,000 are regulated at a federal level. 

Eligibility criteria:

  • Be an Australia citizen or permanent resident
  • Be at least 18 years of age
  • Have a steady income and regular source of income
  • Full names
  • An active bank account

Required information:

  • A valid form of ID
  • Your contact details
  • Proof of income
  • Your bank account details

Are Payday Loans Safe? These payday loans are financially dangerous. They can easily turn into an expensive nightmare for people who have bad credit or no credit.

2. Where can people get the payday loans in Australia?

2.1. Credit unions or other institutions 

Traditional banks, financial companies, and credit institutions provide payday loans for bad credit holders. The amount of lender will be willing to share with different amounts based on your credit and whether the loan is secured (no collateral).

Secured loans can be a viable option. With this option, you’ll receive more favorable terms, such as a higher loan amount and a lower rate. However, people must be absolutely sure you can refund the loan on time or you could lose whatever collateral you’ve agreed to use (your home, car, or savings account…).

2.1. The online payday loans

The process to apply for payday loans online:

  • Visit some payday lenders and choose a suitable payday lender
  • Write a check to the lender and pledge to pay the borrowed amount by a certain date. 
  • The lender deposits the money in the customers’ bank account or gives them checks for the amount
  • They hold the check you wrote for the term in two weeks of the loan.
Payday loans in Australia
Payday loans in Australia

3. The interest of the payday loans in Australia

  • With a loan of up to $2,000 that is repaid within 16 days to one year, a lender can only charge a 20% establishment fee and a 4% monthly fee.
  • With a loan between $2,001 and $5,000 that is repaid within 16 days to two years, fees are limited to a one-off establishment fee of $400 and an annual interest rate of 48%.
  • For larger loans above $5,000 or with terms longer than two years, fees and charges can’t be over 48% annually. This includes establishment fees.

4. The advantages and disadvantages of the payday loans in Australia

4.1. The advantages of the payday loans in Australia

  • Provide an option when there are no others
  • Easy to obtain
  • Fast and convenient
  • Easy online application
  • Quick turnaround

4.2. The disadvantages of the payday loans in Australia

  • More expensive than other loans
  • Easy to fall into a vicious cycle
  • Deception by lenders
  • Disreputable lenders
  • Short repayment terms

In the previous article, Info Credit Free introduced to people for a variety of information about quick loans in the AU. If you are in the AU and looking for short-term loans in Australia, please click on this link Short-term loans in AustraliaIn addition, you can get more tips in order to choose loans for meeting your needs.

Hillary (Team Content) – Info Credit Free