When life throws you a curveball, it’s important to know that there are options you can turn to. Whether it’s an unexpected medical bill, urgent car repairs or another unplanned expense, if you need cash in a hurry, a small loan can help you bridge the gap.
With flexible lenders willing to look past your credit score that can approve your application in a matter of hours, your cash loan can help you pay off immediate expenses at your own speed.
How do small loans work?
Small loans, also known as short-term cash loans, are designed to be fast and flexible. You can borrow up to $5,000 and take as long as two years to pay off your loan (depending on how much you borrow). You can use your small loan funds however you like, from buying new furniture to covering your overdue rent and anything in between.
The application process is a rapid one. With an initial online form taking you just minutes to fill out, you can receive an instant outcome in as few as 60 seconds. The formal assessment process and approval can take place within hours, or as few as one, with your funds potentially hitting your account that day (though there are several variables that might impact the speed of approval).
Are small loans different to personal loans?
Although they might sound like a downsized version of a regular personal loan, there are key differences between them:
- Personal loans are available from $5,001 up to a maximum of $75,000 (if they’re unsecured)
- Personal loans can be secured by an asset, such as your car, while small loans cannot
- Personal loan interest and fees can be set by each lender, while small loans must adhere to strict caps on their costs
- Interest and fees are higher on small loans than personal loans
- Small loan providers generally have more relaxed qualification criteria for these products
- Small loans are often quicker to be approved, though some personal loans may also be paid out on the same day
How small loans help you manage your debts
Once you’re approved for your loan, you can choose whether to pay on a weekly, fortnightly or monthly schedule. You can also make additional payments for free, which will help you save on interest and/or fees and clear your debt sooner.
Having fixed repayments allows you to budget around your instalments more easily, as you’ll know exactly how much you’ll be paying each fortnight or month. If you need to contact your lender during your term, you’ll be able to do so online or via phone.
Is a payday loan the same as a small loan?
Yes, the terms payday loan, cash loan and small loan are used interchangeably these days. They’re all names for the same product (though the term “payday loan” usually refers specifically to SACC loans). This wasn’t always the case, though.
Short-term credit contracts (STCCs) were available in Australia for a time, which were loans of up to $2,000 and terms of up to 15 days in length. This type of loan is now banned in Australia.
Types of small loans
Small loans in Australia fall under two main categories: SACC or MACC loans. However, there’s a range of other finance types that are available in the current market.
Small amount credit contract (SACC) loans
SACC loans are available for any amount up to $2,000. You can take between 16 days and 12 months to pay off your small loan debt. There are two fees charged on this loan: a one-off establishment fee of up to 20% of your loan amount (built into your repayments) and a recurring monthly fee of up to 4% of your loan amount.
Medium amount credit contract (MACC) loans
MACC loans are available from $2,001 to $5,000 and can be repaid over 16 days to 24 months. You can be charged a flat establishment fee worth no more than $400 and interest not exceeding 48.00% p.a.
Line of credit loans
Some lenders, such as Wallet Wizard, allow you to borrow funds through a line of credit. This means you can access funds at any time up to your approved account limit, rather than having to apply for a new loan every time you need cash. You’ll only have to pay interest on the balance you use, rather than the full line of credit limit.
In some cases, these loans allow you to borrow beyond the $5,000 maximum. With Wallet Wizard, for example, you can access as much as $8,000, though the limit you’re approved for will depend on your profile. Lines of credit usually come with the same high interest rates as MACC loans, though you may not have to pay any fees outside of that.
Low cost credit contract (LCCC) loans
LCCCs are different from the other two loans. An example of an LCCC is a buy now pay later (BNPL) product, where you’re lent a small sum of money at the point of purchase and repay it over a set number of instalments (usually between four and eight). If you make all these payments on time, you won’t be charged interest, but you may be charged a fee by your provider.
Previously, BNPL services weren’t required to hold an Australian Credit Licence (ACL) or conduct credit checks. However, as of June 2025, new legislation came into effect mandating both of these.
Pay advance services
Pay advance services and apps like Beforepay and Wagepay enable you to access a portion of your next payslip early. This is often up to 25% of your pay (up to a set cash limit), which is taken out of your future payslip and debited to your provider alongside a service fee (usually around 5% of your borrowed sum).
These loans are different from what’s considered a small loan. While they’re often convenient and are comparatively low-cost, it’s important to note that providers aren’t subject to the same stringent responsible lending obligations as of June 2025.
What can I use a small loan for?
Small loans are designed to be highly flexible in how they can be used. You can essentially put your funds towards just about anything you like once you receive them in your account. Here are the most common reasons cited on small loan applications through Savvy in the 2024-25 financial year:
As you can see, vehicle expenses accounted for over a quarter of all small loan applications, with living and medical expenses being the next most frequent loan purposes nominated.
How to apply for a small loan with Savvy
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Fill out our quick online form
Tell us about yourself, your employment and income and the loan you’re after.
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Receive an instant outcome
If you meet the criteria of one of our lenders, you can be conditionally approved in 60 seconds.
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Have your application formally assessed
Your lender will consider your profile and request additional info if required.
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Get approved and receive your cash
If they’re happy with everything, sign off on all the loan documents and get your funds as soon as the same day!
Why apply for a small loan with Savvy?
Income requirements for small loans
When it comes to your lender’s minimum income requirements, each one is different. Some lenders may accept a weekly income of just $400, while this may be $500 or more for others.
The other key factor to consider is Centrelink payments. Each lender will have a list of accepted Centrelink payments that can count towards your income, which can include (but aren’t limited to):
- Age Pension
- Disability Support Pension
- Carer Payment
- Parenting Payment
- Service Pension for Veterans
Payments like JobSeeker, Youth Allowance, Austudy and ABSTUDY on their own aren’t accepted. This is because they’re based on factors like your age, employment status and study status, which can easily change.
Debt resources
It’s essential to know where to look if you’re struggling to repay existing debts. If you’re in this position, you should let your lender or utility provider know immediately. You may qualify for financial hardship measures like a temporary pause on your repayments, a payment plan or an extension of your loan term.
You can also contact these debt help organisations for free financial advice:
- National Debt Helpline
- Way Forward
- Mob Strong Debt Help (for Aboriginal and Torres Strait Islander people)