Written by A rent arrears loan is a small cash loan that can help you to cover your overdue rent if you are facing short-term financial difficulties and have fallen behind on your payments. It can be a convenient option if you need money fast, providing up to $5,000 of funding so you can immediately pay off the rent you owe and avoid eviction and other repercussions. You then repay your loan plus fees and interest in manageable instalments over several weeks, months or even up to two years.
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.
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.  Â
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, depending on the amount borrowed. 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.
Example scenario
Sarah lost her job, which caused her to fall behind on her rent payments. While she has now found new work, her period of unemployment exhausted her savings and her first paycheque was not enough to cover the rent owing. With the threat of eviction looming, she needed to find a solution quickly.
Sarah applied for a cash loan through Savvy and was approved and funded for a $3,000 loan that day. She received the money as a lump sum direct to her bank account. This allowed her to pay her landlord the overdue amount and avoid eviction, as well as cover other essential costs.
The loan repayments were spread over 12 months. As a small loan between $2,001 and $5,000, the amount was subject to a $400 establishment fee and a 48% interest rate. This amounted to $362 each month and $4,347 in total, including the establishment fee and $947 in interest. By breaking down the cost, she was able to stay within budget, giving her time to get back on her feet and stabilise her finances.
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.
Cash loan eligibility and information
Top tips for avoiding getting into rent arrears
Frequently asked questions about rent arrears loans
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.
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.
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.
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.
Yes – you can use your cash loan pretty much any way you choose, including to cover other household expenses. This could include:
- Utility bills
- Rental bond
- Relocation costs
- Furniture and white goods
- Home improvements
Yes – you may be able to get government assistance if you’re in a crisis and struggling to pay your rent. If you receive certain Centrelink payments, you may be eligible for Rent Assistance. Alternatively, you may be able to take out a Centrelink advance payment to pay overdue rent, which is a small interest-free loan that you repay out of your Centrelink payments.
Small loans to suit your circumstances
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.
