Written by 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. We’re partnered with a panel of reputable lenders that can offer you quick and easy finance. It takes just minutes to apply and with instant outcomes and funding in as little as an hour, you can get the cash you need without delay.
How a small loan can help you manage your debts
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Borrow up to $5,000
You can get approved for a small loan as little as $2,050 up to a maximum of $5,000, making them suitable for a wide variety of needs, big or small.
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Flexible repayment terms
Depending on how much you borrow, you can repay your loan over to a maximum of two years in line with a term that suits your needs.
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100% online applications
You won’t have to leave the comfort of your home when applying for your small loan, with the process taking place online from application submission to signing your contract.
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Fixed instalments
Lenders want to see that you have a reliable income, whether that's from employment, self-employment or Centrelink, as this reassures them that you can meet your repayments.
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Rapid approval and payment
In most cases, your application can be approved and the funds can hit your bank account on the same day you apply, giving you access to your funds fast.
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Capped fees
There won’t be any hidden fees on your loan agreement, so you'll know exactly what your loan will cost before you sign your contract.
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Free early repayments
Although these loans have fixed repayments, you won’t be penalised for paying off your agreement ahead of schedule, enabling you to potentially save a considerable amount of money.
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Available to bad credit borrowers
It doesn’t matter if you’ve struggled with credit in the past. Small loan financiers can approve applications from borrowers with bad credit.
How do small loans work?
A small loan is a short-term cash loan providing amounts up to $5,000 to cover urgent costs. You then repay the borrowed amount plus fees and/or interest over a set period in regular weekly, fortnightly or monthly instalments. In Australia, small loans are divided into two categories: Small Amount Credit Contracts (SACC) and Medium Amount Credit Contracts (MACC). SACC loans – also referred to as payday loans – cover amounts up to $2,000. They come with the following fee structure:
- Establishment fee: capped at 20% of the loan amount
- Monthly fee: capped at 4% of the loan amount
- No interest charges: instead, fees are applied
- Repayment period: between 16 days and one year
These loans are always unsecured, meaning you don't need to provide collateral, such as a car, to qualify. MACC loans are for amounts between $2,001 and $5,000. They are structured differently to SACC loans:
- Establishment fee: up to $400
- Annual interest rate: up to 48%
- Repayment period: between 16 days to two years
Unlike SACC loans, MACC loans can be either secured or unsecured, depending on the lender’s terms, but are most often unsecured.
Small loans to suit your circumstances
Why apply for a small loan with Savvy?
No matter the time of day or week, you can complete your small loan application with us online.
You can receive an outcome in 60 seconds and, if successful, have your money sent in just one hour.
We're partnered with reputable Australian lenders to bring you greater peace of mind when applying for your small loan.
How much will my small loan cost?
The cost of your loan will depend on two factors: how much you’re borrowing and the time you’re taking to repay your debt. There are two main fees which apply to small cash loans:
- Establishment fee: this is a one-off charge which is split evenly across your repayments. It's capped at a flat $400 for all small loans.
- Monthly fee: this fee is charged on an ongoing basis, being payable each month throughout your term. This is charged at no more than 48% per year.
It’s important to note that there are many ways you can go about reducing the potential cost of your loan. Perhaps the easiest way to do this is to opt for a shorter loan term. By reducing the number of months on your agreement, you’ll be liable to pay less in ongoing fees. The table below demonstrates how shorter loan terms can lead to a substantial overall saving.
| Loan amount | Establishment fee | Monthly fee | Loan term | Monthly repayment | Overall cost |
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$3,000 |
$400 |
$120 |
Nine months |
$497.78 |
$4,480 |
|
$3,000 |
$400 |
$120 |
12 months |
$403.33 |
$4,840 |
|
$3,000 |
$400 |
$120 |
15 months |
$346.67 |
$5,200 |
|
$3,000 |
$400 |
$120 |
18 months |
$308.89 |
$5,560 |
Keep in mind that late repayments can incur additional fees and penalties, which will increase the overall cost of your loan. It's important to stay on top of your repayment schedule to avoid these charges.
If you’re struggling with repayments, contact your lender immediately. Lenders are required by law to work with borrowers to find a solution, such as adjusting the repayment schedule or offering financial hardship assistance.
How do I apply for a small loan?
Applying for a small or payday loan is easy. It's typically quicker to get approved during the week and in regular business hours, but weekend loans are still available. There's very few steps and depending on the day or time that you apply you can receive an outcome within minutes.
- Decide on your loan amount and determine your reason for needing funds.
- Fill out Savvy's application form. You'll need to enter some personal and employment details and verify these with some documents.
- You'll be contacted by the lender letting you know whether you're approved
- If approved you'll receive your documents and contract to sign.
- Receive your approved funds.
Before you apply for a small personal loan, it’s important to have a clear understanding of yourself as a potential borrower. At minimum you will have to be 18 years of age, an Australian citizen or permanent resident, employed at least on a casual basis and not have any other outstanding payday loans.
The other key is to apply for an amount you can afford to repay. For example, if you were earning $500 per week and already balancing other life expenses, a lender won’t approve you for a loan which costs you $300 per week. Above all else, lenders want to ensure that you’ll be able to repay the amount you’ve borrowed.
Eligible documents to verify your details
You’ll also need to have a set of documents handy before submitting your application. These include:
- ID such as your driver’s licence, passport and Medicare card
- Recent bank statements - depending on the lender they may ask for up to 90 days’ worth of bank statements or request access to your online banking through a secure portal.
- Centrelink income statements (if you receive income from Centrelink)
Rest assured that your information is securely processed and protected when you apply for a small loan through Savvy. We collect only the data needed for you application and this is kept only as required. We won’t share your data without consent and take measures to protect it. Our lenders use encryption and follow strict privacy laws to ensure your personal and financial data remains confidential.
Receiving formal approval and signing your contract
If the small loan lender is happy with all the information you’ve provided, you’ll be sent a loan contract to sign. This confirms all the details of the agreement, such as your loan amount, term length, repayments and repayment schedule, as well as the cost of the fees which will apply to your loan. You’ll be able to sign this electronically and return it to your lender. There may be some instances where a lender requires more information from you, so you may need to supply additional documentation before formal approval can be arranged.
Funds transferred to your account
Once you return your contract, your lender can transfer your quick loan funds to your account. Your funds will hit your account on the same day you apply in most cases, although this depends on your borrowing profile, lender and the time of day or week you apply (as well as your bank’s transfer processing speed).
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Small loans frequently asked questions
No – all small loans in Australia come with the requirement for your lender to conduct a credit check as per responsible lending guidelines. However, this isn’t designed solely to check your score: lenders are more focused on your ability to repay your loan now and check whether there are any defaults on other recent loans which may put you at risk of defaulting again. As such, reputable lenders don’t offer no credit check loans, but you won’t have to worry about focusing on this even if you have a bad credit score.
Probably not – while you can receive an instant outcome 24/7, your loan will have to be processed within business hours. However, there are some lenders who are open on Saturdays, so you may be able to receive a weekend payout.
No – like no credit check loans, there aren’t any reputable lenders who can guarantee approval before assessing your financial information. This comes down to responsible lending laws in Australia: lenders must only approve applications from borrowers who are capable of comfortably managing their repayments. As such, approval can’t be guaranteed.
Yes – provided you’re earning a stable income from other sources, you can be approved for a small loan even if you’re unemployed. Some of the potential sources of income which could count towards your loan include:
- Investments
- Superannuation
- Government pensions, such as:
- Disability support pension
- Aged pension
- Veterans’ Affairs pension
- Single parent payments
- Carer payments
Yes – you can set up your repayment to your lender as a direct debit. This can be highly useful, as it means you won’t have to remember to manually transfer a set amount each month.
Yes – lenders are focused on your ability to repay loans in the here and now. While they always prefer applicants with a borrowing history they can refer to and assess, if you show that you’re earning enough on a consistent basis to comfortably support your repayments, you can still be approved. Especially if you have clean bank statements.
In Australia, small loan lenders are required to follow strict guidelines set by the Australian Securities and Investments Commission (ASIC) to ensure responsible lending practices. This means they must make sure the loan is fit for purpose and you can comfortable afford to repay it.
Many lenders will also perform credit checks. Lenders must also be transparent about the costs of the loan, including fees, interest rates and repayment terms. They are obligated to clearly communicate this information before the loan is approved, ensuring borrowers fully understand the financial commitment they are entering into.
All of Savvy’s lending partners follow these practices and more to ensure the highest level of consumer protection, so you can rest assured that your loan application will be handled with integrity and transparency.
Small loans are smaller amounts up to $5,000 designed for short-term needs, often with quicker approval processes. Personal loans, on the other hand, can go up to $75,000 or even $100,000 with security and have longer repayment terms, lower interest rates and require more documentation for approval. Small loans are often used for immediate, smaller expenses, while personal loans are more suited for significant purchases or debt consolidation.
Yes, you could use a credit card instead of a small loan, but it depends on your financial situation and the terms of your card. Credit cards can be more convenient for smaller purchases or emergencies, especially if you can pay off the balance quickly. However, small loans can offer more structured repayment plans and potentially lower interest rates than credit card debt, especially if you need to borrow a larger sum over a longer period.
Online banking is required for small loan applications because it allows lenders to quickly verify your financial details, including income and expenses, which speeds up the approval process. It also simplifies loan repayments, as funds are transferred electronically.
If you encounter any issues with your small loan, you should contact your lender directly. While Savvy helps to facilitate the loan, our involvement ends once we have connected you with a lender. The lender then manages all aspects of your loan once it's approved, including customer service and repayments.
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 |
Disclaimer:
The information on this website is of general nature and does not take into consideration your objectives, financial situation or needs.
For loans between $2,050 and $5,000, the APR is between 21.24% (minimum) and 48% (maximum) per annum. Comparison rate of 65.4962%. Minimum term is 16 days and maximum term is 24 months. The cost of the loan is a $400 establishment fee and monthly interest charged on the amount borrowed. For example, a loan of $3,000 over 3 months with an APR of 48%, (comparison rate of 65.4962%), will have an establishment fee of $400, monthly repayments of $1,225.20. Total repayments of $3,675.60 and total interest payment of $275.60.
Warning: A comparison rate indicates the true cost of a loan. Comparison rates are true only for the examples provided and may not include all fees and charges. Different terms, fees or loan amounts might result in a different comparison rate.
