Rent Arrears Loan

Need a small loan to tide you over? Savvy has you covered.

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Savvy Editorial Team
Savvy's content writing team are professionals with a wide and diverse range of industry experience and topic knowledge. We write across a broad spectrum of finance-related topics to provide our readers with informative resources to help them learn more about a certain area or enable them to decide on which product is best for their needs with careful comparison. Meet the team behind the operation here. Visit our authors page to meet Savvy's expert writing team, committed to delivering informative and engaging content to help you make informed financial decisions.
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, updated on Feb 3rd, 2025

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$500
$50,000


Paid in 60 mins if approved*
Written by 
Savvy Editorial Team
Savvy's content writing team are professionals with a wide and diverse range of industry experience and topic knowledge. We write across a broad spectrum of finance-related topics to provide our readers with informative resources to help them learn more about a certain area or enable them to decide on which product is best for their needs with careful comparison. Meet the team behind the operation here. Visit our authors page to meet Savvy's expert writing team, committed to delivering informative and engaging content to help you make informed financial decisions.
Our authors
, updated on Feb 3rd, 2025

Fact checked

At Savvy, we are committed to providing accurate information. Our content undergoes a rigorous process of fact-checking before it is published. Learn more about our editorial policy.

Falling behind on rent can leave you in a tricky situation. You don't want it to get out of hand, but is there a way to pay your landlord now and then manageably repay that debt over time? Find out about rent arrears loans and whether they're the right solution for you.

What is a rent arrears loan?

A rent arrears loan is money you borrow to clear your rent debt. They provide you with rapid access to the required funds and allow you to immediately pay off the rent you owe. You can then repay that debt in a more manageable way over a number of months. If your rent is in arrears and you don’t currently have the funds to pay it, one of the quickest and easiest options available is an instant cash loan. This is a small loan available from online lenders that provides between $2,050 and $5,000 of quick funding for urgent expenses.

“Rent arrears” effectively means your rent is late. Arrears is a technical, legal term for something being overdue or after the fact. Workers are often paid in arrears, meaning they’re paid after they’ve completed the work (or at the end of the pay period). When it comes to debts such as rent, it’s not such a good thing.

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. For example, 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. 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.

Why apply for a small loan with Savvy?

Frequently asked questions about rent arrears loans

Will my rent being in arrears affect my credit rating?

If your rent is in arrears long enough, yes – like any unpaid debt or bill, it can lower your credit rating. It’s a good idea to act sooner rather than later with rent in arrears, as initially the consequences are less serious. Just because they’re less serious doesn’t mean the resulting action will be insignificant, however. Rent in arrears will eventually be reported by your landlord to the courts as part of eviction proceedings.

You’re entitled to a free copy of your credit report every three months. Various credit agencies can provide this – notably Equifax, Experian, and illion. Your report will have details not just of your credit rating, but of things like your credit limits and outstanding debts. It is possible that a credit report may have errors, in which case you’re entitled to report them and have them corrected.

A rent arrears loan through an online lender is a very quick process. Savvy’s online loan application takes about five minutes to complete. Once you’ve submitted your initial application, you can generally expect the loan to be finalised and the money transferred on the same business day.

Does my rent being in arrears make it harder to get a loan?

It can – if your rent has been owing for a while, your landlord can report it, which will show up on your credit report and indicate to a potential lender that there’s a problem. Potentially, this makes it harder to get a rent arrears loan to fix the problem. Fortunately, though, online lenders are generally quite understanding about credit rating when it comes to small cash loans – especially if you’re getting the loan specifically to settle that debt.

Yes – there are some options for loans and other government assistance if you’re in a crisis and struggling to pay rent. The Australian Government can offer small interest-free loans to low-income earners who meet the criteria. Centrelink customers might also be eligible for advances on their payments, or rent assistance. The application process can take a little time, though.

To get a rent arrears loan finalised, you’ll need some supporting documents. You’ll need 100 points of ID (a passport or birth certificate is worth 70, while a driver's licence or student ID card are each worth 40). You’ll also need bank statements and proof of income – these are normally payslips, although in some cases you might be giving them some Centrelink details, in which case they can access information through the myGov network.

Top tips for avoiding getting into rent arrears

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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.