Emergency Loans

Emergency loans are ideal for dealing with unexpected events like car breakdowns and leaky pipes, but that’s not the only thing you can use one for. Not all emergencies are disasters, and many Australians use a loan to grab nicer, short-term opportunities too. That laptop on sale for a limited time, discounted holidays, a rental bond – you can use an emergency loan to pay for something if the chance doesn’t fit with your pay cycle.

You can use an emergency loan to pay for several things all at once, which makes them great for when everything goes wrong all in the same week! Loans aren’t secured against a purchase, so you’re free to use them to cover a few different expenses.  Lenders check to see how many loans you’ve got going, so it’s a good idea when you decide to apply for an emergency loan to sit down and work out exactly what you need to navigate the period the loan will be active. If you’re expecting a rough couple of months, make sure you borrow enough to cover that.

If you’re eighteen or over, can afford the loan, a resident or citizen of Australia, and you can demonstrate a regular form of income – you’re likely to get considered for an emergency loan. Lenders check your bank account to make sure your income is ongoing, so they’ll need access to 90 days’ worth.

Fees for all small loans are capped and fixed, so it’s easier to budget. You’ll pay a maximum of $400 in setup fees and up to 48% of your loan amount each year.

Emergency loans are a pretty flexible way to borrow. You can choose to borrow over a short period (the minimum is just 16 days) or opt to extend repayments to two years. You’re free to set up payments to match your income pattern too – many Aussies choose to repay fortnightly or weekly, but you can arrange to pay monthly if that’s how you get paid.

All reputable and responsible lenders check your credit report. Most loan providers mainly look to see your existing borrowing, and you won’t get penalised so much for past late payments – unlike with a personal loan, for instance. Many borrowers get a loan with a bad credit history. Lenders mostly base decisions on whether or not the loan is affordable for you. If you’re already paying back a couple of loans, they’ll probably recommend you repay those before you take on more borrowing.