humm is a loan provider operating in Australia. Formerly a buy now pay later (BNPL) service, humm changed its product offering following the announcement of changes to BNPL regulations by the Australian Government. Before you start up your humm account, though, it’s essential to understand how it works and what the potential alternatives are.
Rates and product information are correct as of 10 June 2025.
How do humm’s loans work?
humm’s offering is more unique than most personal loan providers. Instead of being given a lump sum and using it however you like, humm allows you to buy goods and services directly through a partnered merchant with your loaned funds and repay them over a set term. This makes it similar to other BNPL products in principle, but there are several key differences:
- You’re assigned a life-sized limit of up to $50,000, which you can draw from when you need to make a purchase (depending on the merchant)
- Repayment terms can reach up to ten years (also depending on the merchant)
- Interest and fees apply, which are determined by the merchant you’re buying from
The eligibility criteria that apply to humm loans are:
- You must be at least 18 years old
- You must have a suitable source of income
- You must be permanently residing in Australia
- You must have a good credit rating
How much will a humm loan cost?
As mentioned, interest and fees apply to humm loans, but these are set by the individual merchant. For example, humm doesn’t list any interest rates on its site but states that these are fixed for the full duration of the loan. Some of the fees include:
- Establishment fee: from $99
- Monthly fee: from $9.99
- Late payment fee: $20
- Progress redraw 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
Unlike most BNPL services, you can borrow up to $50,000 and repay it over as many as ten years.
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Fast and simple applications
Provided you meet humm’s eligibility requirements, the process of purchasing products with humm can be a very quick and easy one.
Cons
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Steep costs
The costs in place to use humm are quite steep, from interest to establishment and ongoing fees, as well as being charged each time you buy.
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Risk of overspending
Services like humm can lead to overspending as consumers may be tempted to make purchases beyond their means, especially with the convenience of deferred payments.
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Not all retailers accept humm
Although it can be very useful when buying through a humm merchant, you won’t be able to utilise it if you’re buying from a non-humm merchant.
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: the most like-for-like replacement is a BNPL product. 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 the amount you need is $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.
- 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.
