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Rent Arrears Loan

If you’re struggling to pay your rental payments and exhausted your aid options, your next option could be a rent arrears loan.
$2100
|
|
|
|
|
$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

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.
Last updated
March 27th, 2025


Rent Arrears Loan

If you’re struggling to pay your rental payments and exhausted your aid options, your next option could be a rent arrears loan.
$2100
|
|
|
|
|
$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 Mar 27th, 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.

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.   

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?

Cash loan eligibility and information

Top tips for avoiding getting into rent arrears

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.

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.

How do I check my credit rating before applying for a rent arrears loan?

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.

Are there government assistance options if I'm struggling with my rent in arrears?

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.

How long does it take to apply for a rent arrears loan?

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.

What will I need to be able to apply for a rent arrears loan?

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.

Can I use my cash loan for other housing-related costs?

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
Are there government assistance options if I'm struggling to pay my rent?

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

Apply now

Cash loan cost table

Small (SACC) loansMedium (MACC) loans
Minimum loan amount$100$2,001
Maximum loan amount$2,000$5,000
Minimum loan term16 days16 days
Maximum loan term12 months24 months
Repayment scheduleWeekly, fortnightly or monthlyWeekly, fortnightly or monthly
Establishment feeUp to 20% of your loan amountUp to $400
InterestN/AUp to 48.00% p.a.
Monthly feeUp to 4% of your loan amountIncluded 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.

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