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Payday loans Australia
Payday loans can be helpful when you need cash fast, but can be expensive when compared to other loans. Be sure to check your options and look for alternatives.
⚠️ Warning about Borrowing
Do you really need a loan today?*
It can be expensive to borrow small amounts of money and borrowing may not solve your money problems.
Check your options before you borrow:
For information about other options for managing bills and debts, ring 1800 007 007 from anywhere in Australia to talk to a free and independent financial counsellor
Talk to your electricity, gas, phone or water provider to see if you can work out a payment plan
If you are on government benefits, ask if you can receive an advance from Centrelink: Phone: 13 17 94
The Government's MoneySmart website shows you how small amount loans work and suggests other options that may help you.
* This statement is an Australian Government requirement under the National Consumer Credit Protection Act 2009.
A small loan up to $3,000 that you repay over 12-20 weeks. Loans approved and funded in as little as 30 minutes. Centrelink must not be your primary income
A small loan between $500 and $2,000 that can be funded in 24 hours.
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Payday loans, also known as short-term loans, are a loan designed to be repaid quickly – ideally by your next payday. You usually have between 16 days and 1 year to pay it back, although the longer it takes to repay, the more hefty fees you'll pay.
There are strict laws in Australia governing what you can and can't be charged by lenders. For example, in Australia:
Payday lenders may lend up to a maximum of $2,000.
They must charge fixed fees (rather than a standard, annual interest rate).
Fees are regulated by the Australian Securities and Investments Commission (ASIC).
While each lender has their own fee structure, many charge the maximum legal amount, which is a 20% loan establishment fee and a monthly loan fee of 4% of your outstanding loan.
Some lenders may have more affordable options, so it's important to compare payday loans prior to submitting an application.
Alternatives to payday loans
Payday loans are among the most expensive types of credit you can take out.
If you are facing financial difficulties and considering a payday loan, be sure to look into alternatives that may be more affordable in the long run.
Product
Mainly used for
Pros
Cons
Payday loan
Quick access to up to $2,000
Faster than many forms of credit, easier approval for people with low credit scores
Extremely expensive, must be paid off in under 12 months
Finder compares lenders from across Australia to help you find the most suitable option for you. If you are looking at taking out a payday loan, here are the features and fees to keep in mind:
Monthly fee. Payday loans in Australia cannot charge an annual interest rate and instead charge monthly fees. The maximum fee for each month is 4% of what you borrowed. Over 12 months, this adds up to 48%.
Establishment fee. Also known as an administration fee, it is to be paid upfront once you've been approved. Payday loans often have very high establishment fees of 20% of what you borrowed.
Default fee. Also known as a dishonour or late payment fee, this is charged if you miss a payment. This can add up to a significant amount on top of the monthly fees.
Loan term. This is how long you have to repay the loan. Payday loan terms range from 16 days to 1 year. You may be able to repay your loan in full before the agreed date and through this save money on the monthly fees. However, it is important to check if your payday lender charges a fee for early repayment.
Payday loan rates and fees explained
Hi I'm Elizabeth, personal loans editor at finder.com.au. If you're thinking about applying for a short-term loan one of your main concerns is going to be the cost. We're going to break down those costs so you can decide if these loans will work with your budget.
Short-term loans are one of the most strictly regulated loans available and because of this lenders are restricted as to how much they can charge. The credit regulator ASIC has made it so that lenders offering loans of less than $2,000 with terms of between 16 days and 1 year can only charge fees and not interest rates. That's right, these loans actually come with no interest. The reason people think that interest is charged on short-term loans is that the fees are expressed as percentages.
So let's look at these fees. The first fee that you need to consider is the establishment fee. Lenders cannot charge you more than 20% of what you borrow for this fee. The second main fee you need to consider is the monthly fee. Lenders cannot charge you more than 4% for this fee. Remember that these restrictions only apply to loans of less than $2,000 with terms of between 16 days and 1 year. If you're borrowing more, different restrictions will apply.
Now you know how much you can be charged, let's look at an example. Let's say I take out a loan of $500 with terms of 62 days, which is a pretty standard loan term offered by short-term lenders. In total, I will repay $660. This includes my original loan amount of $500, my establishment fee which equals $100 and 3 monthly fees of $20 each. So now you know how much short-term lenders are able to charge and how to work out how much you will pay when you take out one of these loans. Remember though that not every lender will charge you the maximum allowable fees, so compare your options before you apply. To find out more about short-term loans and how to compare them, head on over to finder.com.au.
What are the risks of payday loans?
Unaffordable repayments. Payday loans are an expensive way to borrow money. Check the size of each repayment and ensure you will be able to pay on time. If you can't afford the repayments, you will end up paying late fees that will only make your financial situation worse.
High rates and fees. Interest rates, late payment and default fees on payday loans are high. Make sure your lender is not charging you more than the ASIC allows and check what you would be charged if you are late on a payment or if you can't pay back the loan altogether.
Be careful who you borrow from. All the companies listed on our tables are accredited by the ASIC. If you are thinking about taking a loan from a company not on our tables, check that it has a credit licence on the ASIC Register and ensure that the lender is easy to contact.
Impact on credit score. Every loan application shows up on credit reports. While some lenders might not consider credit rating, applying for lots of loans in a short period can have a negative impact on your credit score. Building up a good credit score is important as it will help you to get better deals on financial products in the future.
How to apply for a payday loan
Most Australian payday lenders will let you apply online and you will need to meet the eligibility requirements to be approved. The exact eligibility criteria will depend on the loan and lender, but the application process usually involves the following steps:
Step 1: Compare lenders
While payday loans are all expensive, some lenders are more affordable than others. Comparing lenders helps you find the best deal for your situation. Keep an eye on how expensive the loan is, any fees for early or late payments, and the repayment schedule.
Step 2: Review the eligibility criteria and required documents
Make sure you're eligible for the loan before you apply. Being rejected for too many loans can lower your credit score, which will make future loans more expensive.
Be 18 years of age or older
Earn a regular income, usually around $350 a week
Be employed, receive an income or government benefits
Receive less than half of your income from benefits
Get paid frequently into your bank account (not in cash) either daily, weekly or monthly
Not be self-employed (some lenders may make an exception)
If you have bad credit, you need to prove that your current financial situation is stable and reliable
It's important to note that meeting the eligibility requirements does not guarantee approval of your loan.
Driver's licence (or proof of ID card)
Medicare number
3 recent payslips
Your internet banking details
Utility bill such as council rates, electricity, gas, mobile phone or internet
Step 3: Get approved and review
Payday lenders can usually let an applicant know if they've been approved or not in a matter of minutes. They manage to do this by automating the process, so delays will only occur if they need to reach out to you for more information or if your application is flagged for manual review.
Once approved, you'll be sent your contract. This should have all the details and costs, so make sure you review it carefully before signing. After you sign, the money will be sent to your bank account.
How much will a payday loan cost?
Lenders who try to charge you more than these fees are breaking the law.
Loans under $2,000
Establishment fees. 20% of the borrowed amount
Monthly fees. 4% of the borrowed amount
Fees and interest for loans between $2,001 and $5,000
Establishment fees. No more than $400.
Interest. No more than 48% p.a.
Other payday loan fees to watch out for
Early repaymentRepaying your loan early may come with a fee.
Late payment.You will be charged a late payment fee if you fail to make a repayment on time and don't inform the lender beforehand.
Collection. Any loans which are referred to collections or are defaulted on may incur additional fees.
Reasons why your payday loan application could be rejected
Lenders have a range of rules around who they will or will not approve for a loan. Some common reasons loans are rejected include:
You have too much existing debt
You are currently unemployed
Centrelink is your only source of income
You have too many missed payments for bills or other debt
The lender can't verify your income - such as if you're paid in cash
You've made too many payments to gambling sites
You don't meet the lender's eligibility requirements
Frequently asked questions about payday loans
There are no payday loans in Australia who offer 100% guaranteed approval. Every lender has eligibility criteria, and while some have more relaxed rules than others, all lenders will reject applications from borrowers they see as too risky.
You should be very sceptical of anyone offering guaranteed approval.
If you don't make repayments on time you will be charged a fee. These fees are often flat payments which can add a lot to the total cost of your loan. Any defaults on the loan will also be listed as a negative mark on your credit report and can remain there for as long as seven years. If you already have a loan and you don't think you can make a repayment, contact the lender to discuss what your options are. Reputable lenders will work with you through processes such as payment plans.
Payday loans are an expensive form of credit and you should compare your options as well as research any rates, fees and conditions before applying. While payday loans are heavily regulated by ASIC, it's important to remember that they are costly and you shouldn't apply if there are alternatives available to you. Before you apply, see if you may be eligible and if the other credit types suit your needs. It's also a good idea to calculate costs to see if any of the alternatives are cheaper than a payday loan.
This differs between lenders and will also usually depend on who the applicant banks with. If the lender uses the same bank as the applicant, they can receive their funds within minutes of being sent. Some lenders are able to do this if a customer banks with any of the Big Four.
With most, customers will need to apply and be approved by a certain time (usually around 2pm) for the funds to be received on the same day. If an applicant needs their loan today, the earlier they apply, the better chance they have.
Payday loans have tight restrictions and regulations under government reforms that set limits on how much payday lenders can charge you. Because of this regulation, and because most payday loans have loan terms of less than a year, payday lenders cannot charge you interest the way other lenders do, since other lenders calculate their rates annually. They therefore just charge a percentage of the amount borrowed. They can make references to the effective comparison rates and annual percentage rate (APR), but it's important to remember that payday loan interest rates are based on a shorter loan term than the standard APR calculation of 365 days.
Some lenders consider a pension as an eligible form of income. However, whether you're approved will depend on your specific situation and finances. See Finder's guide to loans for pensioners to compare loans for pensioners and alternative options.
Some payday lenders and institutions do consider Centrelink payments as income, so you may be eligible for a loan. Most lenders won't approve someone if government benefits make up more than 50% of their total income. See Finder's guide to getting a loan on Centrelink payments for more information.
In line with Australian government regulations, you can not renew or roll over your loan. If you want to take out another loan, you'll first have to pay off your current loan and then re-apply (after assessing your current financial situation).
An overdraft account can be a practical solution for repeat borrowing scenarios, especially since you don't have to keep reapplying for a new loan. Although in some situations, an overdraft may not be so useful. If you need more funds than what an overdraft can give, a short-term loan may be another option. Also, not everyone qualifies for an overdraft. With short-term loans, you are able to get access to lump-sum loans that will reach your account within 24 hours.
As an authority on all things personal finance, Sarah Megginson is passionate about helping you save money and make money. She is an editor and money expert with 20 years’ experience and an extensive background in property and finance journalism. Sarah holds ASIC RG146-compliant Tier 1 Generic Knowledge certification, and she's a regular media commentator, appearing weekly on TV (Sunrise, Channel 7 news, Nine news), radio (KIIS FM, Triple M, 3AW, 2GB, 6PR) and in digital and print media. See full bio
Sarah's expertise
Sarah has written 182 Finder guides across topics including:
These lenders won't complete a credit check when people apply for a loan, but there are other eligibility requirements that applicants must meet. Learn more here.
Need a loan but are worried you won't be approved? Before jumping the traditional bank ship and searching for a loan shark, find out how these "lenders" operate in Australia and why you should avoid them.
Thanks for getting in touch with Finder. I hope all is well with you.
If you want to make sure that you get a loan fast, you would need to make sure as well that you meet the eligibility requirements of the specific loan you are applying for. As of now, there’s no 100% guaranteed loan that you can get because the approval would depend on your ability to provide needed documents.
As of now, what I can suggest is for you to check your options above. Use our table to compare your options based on maximum loan amount, turnaround time, and others. You can then click on the “Go to site” green button of your chosen lender to learn more. Please make sure that you’ve read the relevant T&Cs or PDS of the loan products before making a decision. Moreover, check the eligibility requirements as well and consider whether the product is right for you.
I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.
Thanks for getting in touch! For loan options while on Centrelink, you may refer to our comparison table. It shows a list of short-term credit options and banks that may accept your application while unemployed. You can also use the calculator on the page to calculate your borrowing ability. As a friendly reminder, review the eligibility criteria of the loan before applying to increase your chances of approval. Read up on the terms and conditions and product disclosure statement and contact the bank should you need any clarifications about the policy.
Hope this was helpful. Don’t hesitate to message us back if you have more questions.
Thank you for leaving a question. If this is your first time taking out a payday loan, it’s important to understand the process before you apply. The entire application will take place online, so make sure you have all your personal documents and financial details handy. You’ll need to compare things like minimum income, employment terms, Centrelink eligibility and whether the lender does a credit check. You can also get an idea of the repayments using the tables given on the page.
Once you’ve compared your options you can click “Go to Site” to head to the lender to start your application.
Each lender is different so ensure you read each step before continuing. Make a note of the terms and the repayment amounts (and dates) and ensure you will have enough to repay your loan.
If you need any assistance, once you’ve clicked “Go to Site” the lender will be able to answer questions you may have.
Thanks for getting in touch! It’s helpful to know that our page doesn’t facilitate any online loan applications. To apply for a loan today, check out the calculator to start to find out your repayments for the loan. Choose the provider as listed on the page and click the GO TO SITE to be redirected to their page to get started on the application. As a friendly reminder, review the eligibility criteria of the loan before applying to increase your chances of approval. Read up on the terms and conditions and product disclosure statement and contact the bank should you need any clarifications about the policy. Hope this helps!
As long as you meet the eligibility requirements and has the capacity to repay a loan, you may be eligible to get a loan. Please contact the lender and see your eligibility before submitting an application.
Please make sure that you’ve read the relevant T&Cs or PDS of the loan products before making a decision and consider whether the product is right for you.
Should you wish to have real-time answers to your questions, try our chat box on the lower right corner of our page.
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I have bad credit. I only need a $500 loan fast approval 100% guaranteed. Where can I go? Who will lend to me first application?
Hi Dave,
Thanks for getting in touch with Finder. I hope all is well with you.
If you want to make sure that you get a loan fast, you would need to make sure as well that you meet the eligibility requirements of the specific loan you are applying for. As of now, there’s no 100% guaranteed loan that you can get because the approval would depend on your ability to provide needed documents.
As of now, what I can suggest is for you to check your options above. Use our table to compare your options based on maximum loan amount, turnaround time, and others. You can then click on the “Go to site” green button of your chosen lender to learn more. Please make sure that you’ve read the relevant T&Cs or PDS of the loan products before making a decision. Moreover, check the eligibility requirements as well and consider whether the product is right for you.
I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.
Have a wonderful day!
Cheers,
Joshua
Hi
Im looking for small fast loan for one months
Im not working at the moment and i get centerlink income
I dont know what can i do.?
Thanks
Hi Vida,
Thanks for getting in touch! For loan options while on Centrelink, you may refer to our comparison table. It shows a list of short-term credit options and banks that may accept your application while unemployed. You can also use the calculator on the page to calculate your borrowing ability. As a friendly reminder, review the eligibility criteria of the loan before applying to increase your chances of approval. Read up on the terms and conditions and product disclosure statement and contact the bank should you need any clarifications about the policy.
Hope this was helpful. Don’t hesitate to message us back if you have more questions.
Best,
Nikki
Just wondering if I can get loan
Hi Vicky,
Thank you for leaving a question. If this is your first time taking out a payday loan, it’s important to understand the process before you apply. The entire application will take place online, so make sure you have all your personal documents and financial details handy. You’ll need to compare things like minimum income, employment terms, Centrelink eligibility and whether the lender does a credit check. You can also get an idea of the repayments using the tables given on the page.
Once you’ve compared your options you can click “Go to Site” to head to the lender to start your application.
Each lender is different so ensure you read each step before continuing. Make a note of the terms and the repayment amounts (and dates) and ensure you will have enough to repay your loan.
If you need any assistance, once you’ve clicked “Go to Site” the lender will be able to answer questions you may have.
Hope this helps!
Cheers,
Val
I would like to get a loan for today to payoff my debt
Hi Mary,
Thanks for getting in touch! It’s helpful to know that our page doesn’t facilitate any online loan applications. To apply for a loan today, check out the calculator to start to find out your repayments for the loan. Choose the provider as listed on the page and click the GO TO SITE to be redirected to their page to get started on the application. As a friendly reminder, review the eligibility criteria of the loan before applying to increase your chances of approval. Read up on the terms and conditions and product disclosure statement and contact the bank should you need any clarifications about the policy. Hope this helps!
Best,
Nikki
Just wondering if there any chance I can get a loan, please?
Hello Palamo,
Thank you for your comment.
As long as you meet the eligibility requirements and has the capacity to repay a loan, you may be eligible to get a loan. Please contact the lender and see your eligibility before submitting an application.
Please make sure that you’ve read the relevant T&Cs or PDS of the loan products before making a decision and consider whether the product is right for you.
Should you wish to have real-time answers to your questions, try our chat box on the lower right corner of our page.
Regards,
Jhezelyn