A rent arrears loan is a small cash loan that can help you to cover your overdue rent if you are facing short-term financial difficulties and have fallen behind on your payments. It can be a convenient option if you need money fast, providing up to $5,000 of funding so you can immediately pay off the rent you owe and avoid eviction and other repercussions. You then repay your loan plus fees and interest in manageable instalments over several weeks, months or even up to two years.
How can I get a rent arrears loan?
The best place to start applying for an instant cash loan to clear a rent arrears is by jumping online. Instant cash loans are available from a variety of online Australian lenders, and the process of applying and getting approved is fast and simple.
If you apply for an instant cash loan on the Savvy website, our five-minute online application can give you 24/7 access to some of Australia’s top online lenders, with 60-second pre-approval for a rent arrears loan up to $5,000.
As part of that application, you can also choose the period over which you’ll repay your loan. You can decide whether to pay your loan off quickly, with minimum terms of just 16 days, or opt for a term as long as two years, depending on the amount borrowed. This enables you you to spread a large overdue rent bill out over a longer time if you wish to, paying it off progressively.
Savvy’s network of lenders allows you to choose your loan term. This means that, as a borrower, you get the choice of lower repayments over a longer time or paying more each time to clear the debt quickly, meaning you pay less in fees overall.
Example scenario
Sarah lost her job, which caused her to fall behind on her rent payments. While she has now found new work, her period of unemployment exhausted her savings and her first paycheque was not enough to cover the rent owing. With the threat of eviction looming, she needed to find a solution quickly.
Sarah applied for a cash loan through Savvy and was approved and funded for a $3,000 loan that day. She received the money as a lump sum direct to her bank account. This allowed her to pay her landlord the overdue amount and avoid eviction, as well as cover other essential costs.
The loan repayments were spread over 12 months. As a small loan between $2,001 and $5,000, the amount was subject to a $400 establishment fee and a 48% interest rate. This amounted to $362 each month and $4,347 in total, including the establishment fee and $947 in interest. By breaking down the cost, she was able to stay within budget, giving her time to get back on her feet and stabilise her finances.
Why apply for a small loan with Savvy?
Cash loan eligibility and information
Eligibility
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Age
You must be at least 18 years of age
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Residency
You must be an Australian citizen, permanent resident or an eligible visa holder with a fixed residential address
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Employment
You must be employed on a permanent or casual basis
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Income
You must have a consistent income deposited into your bank account for at least the last 90 days
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Finances
You must be managing your existing financial commitments comfortably
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Contact
You must have an active phone number, email address and online bank account in your name
Documents
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Personal info
Your full name, date of birth, address and contact details
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Employment details
Your employment status and the name of your employer (if applicable)
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Banking
Online banking details and secure access to your bank statements
Top tips for avoiding getting into rent arrears
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Prioritise rent
Rent should be a top priority – having a roof over your head isn’t a secondary consideration. Ensure you have enough to cover rent each month and cut back on non-essentials if necessary.
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Keep track of due dates
Mark the due dates for rent in a calendar or on your phone. Even if your rent is paid automatically, it helps you keep track of your payments so you can ensure the finances are there and ready to go.
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Work to a budget
Develop a clear plan for your income and expenses. By outlining where your money goes, you can allocate specific amounts for essentials like rent, utilities and food, helping you manage your finances more effectively and avoid overspending in other areas.
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Talk to your landlord
If you’re getting into short-term trouble with your rent, it’s a good idea to talk to your landlord or land agent. It might be an uncomfortable conversation, but they may be willing to negotiate a temporary payment plan to help you avoid arrears.
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Set aside funds
It’s often a great idea to have a second bank account set up – perhaps a purely online one that you don’t have a debit card for – where your rent and other expenses are transferred a day or two after your pay hits your account. That way you know your rent is safely set aside.
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Consider other accommodation
If you’re regularly finding yourself in rent arrears, it may be worth considering more affordable accommodation. While it can cost money to move, it’s better than having to consistently borrow money just to make ends meet.
Small loans to suit your circumstances
Cash loan cost table
| Small (SACC) loans | Medium (MACC) loans | |
|---|---|---|
| Minimum loan amount | $100 | $2,001 |
| Maximum loan amount | $2,000 | $5,000 |
| Minimum loan term | 16 days | 16 days |
| Maximum loan term | 12 months | 24 months |
| Repayment schedule | Weekly, fortnightly or monthly | Weekly, fortnightly or monthly |
| Establishment fee | Up to 20% of your loan amount | Up to $400 |
| Interest | N/A | Up to 48.00% p.a. |
| Monthly fee | Up to 4% of your loan amount | Included in the 48.00% p.a. maximum |
| Example loan | $1,500 loan over six months repaid fortnightly
Costs: $1,500 (loan amount) + $300 (establishment fee) + $360 (4% fees over six months) Total cost: $2,160, repayable in instalments of $167 per fortnight |
$3,000 loan over 12 months repaid fortnightly
Costs: $3,000 (loan amount) + $400 (establishment fee) + $912 (total interest over 12 months) Total costs: $4,312, repayable in instalments of $166 per fortnight |
