humm is a loan provider operating in Australia. Formerly a buy now pay later (BNPL) service, humm changed its business model in June 2025 following the announcement of changes to BNPL regulations by the Australian Government. Before you sign up for a humm account, it’s essential to understand how it works and what the potential alternatives are.
Product information is correct as of 27 October 2025.
How do humm’s loans work?
humm offers finance to help you pay for specific goods or services from merchants partnered with the platform. Rather than receiving a cash lump sum, you’re approved for the purchase itself and repay it in manageable instalments.
Credit limits and repayment terms
Depending on your application and the merchant, you could be offered:
- Credit limit: from $1 up to $50,000
- Repayment terms: from three months up to ten years, with regular fortnightly or monthly repayments
Use online or in-store
You can use humm online or in-store, but only with participating merchants.
At checkout, choose or ask to use humm as your payment method. The retailer will then complete and submit your humm application – or you can use a pre-approved spending limit if you have one. You can apply for pre-approval through the humm app or website before shopping, which lets you spend up to your approved limit and speeds up the checkout process.
Most applications take less than ten minutes to complete, and you’ll usually get a decision within minutes if all your details are provided. You’ll then repay humm in instalments over your chosen term.
You can make multiple purchases with humm, but a new application is required each time to ensure you still meet their lending criteria.
Example scenario
Alicia wants to buy a $4,500 dining table from a furniture store partnered with humm. At checkout, she asks to use humm to pay. The retailer submits her humm application, and within minutes she is approved. Sarah reviews the repayment options and chooses to pay the $4,500 in monthly instalments over three years. humm pays the furniture store directly, and Sarah manages her repayments through the humm app. This allows her to take the table home immediately without needing the full amount upfront, while humm handles the financing and repayment process.
What are humm's eligibility requirements?
To take out a loan with humm, you’ll need to:
- Be at least 18 years old
- Be an Australian citizen or permanent resident
- Have a valid Australian ID
- Have a regular source of income
- Have a good credit score and repayment history
humm also performs a credit check as part of every application.
How much will a humm loan cost?
Interest rates for humm loans are fixed for the duration of the loan, but the rate you’ll receive depends on the merchant, as well as the loan amount and term, which can affect the total interest, fees and charges payable. In some cases, interest will not apply.
Loans will also include:
- Establishment fee: a one-off fee to set up the loan
- Monthly loan fee: an ongoing administration fee
- Late payment fee: $20 if a payment is missed
- Progress draw fee: incurred each time a customer accesses funds from their account
The pros and cons of humm
Pros
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Convenient shopping experience
humm offers convenience and flexibility by allowing users to borrow funds at the point of purchase with approved merchants.
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High borrowing limits and long terms
You can finance purchases up to as much as $50,000 and repay it over as many as ten years.
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Fast and simple applications
Application and approval can take as little as ten minutes, provided you meet humm’s eligibility requirements.
Cons
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Potentially high costs
Interest rates and charges differ between merchants and could be higher for some purchases.
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Risk of overspending
Buyers may be tempted to make purchases beyond their means, especially with the convenience of deferred payments.
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Not accepted everywhere
humm is only available at partnered merchants, so it can’t be used at non-humm retailers, including many major chains.
What are the potential alternatives to using humm?
There are several options to choose from if you’re looking for a humm alternative. These include:
- BNPL: while humm has recently moved away from this lending model, the most like-for-like replacement is a BNPL product like Afterpay. These often don’t give you as high a borrowing limit or as long a repayment term, but the cost of these products is lower if you’re able to stick to your repayments.
- Small or medium loans: if you need $5,000 or less, you could also apply for a cash loan. These are sent straight to your account, meaning you can use them however you like, from car registration to covering your bills. However, fees and/or interest on these products are higher.
- Personal loans: a personal loan gives you a lump sum upfront, so you don’t need to submit a separate application for each purchase. On top of this, unlike humm, the loan is not tied to a specific product or partnered merchant, giving you more freedom in how you spend the money.
- No Interest Loans (NILs): another option for smaller loan sums, these products are offered by Good Shepherd through a range of partnered providers. They’re designed to help you pay for essentials such as furniture, electronics, rental bonds, car repairs and more. While they come without interest and fees, the funds (up to $2,000, $3,000 or $5,000 depending on what you’re buying) can only be used for approved purposes.