How Does a Quick Cash Loan Work?

Find out about the convenient way to borrow smaller amounts with our guide to quick cash loans.

  • Borrow up to $5,000
  • Outcome in 60 seconds
  • Flexible repayments
  • 100% online
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 September 12th, 2023       

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.

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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 September 12th, 2023       

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.

Australian borrowers are almost spoiled for choice when it comes to financial products and lenders. That means it’s essential to choose the right loan for you. One available option is to borrow a relatively small amount with a shorter repayment period. Small cash loans are quick – most applications are approved within one hour or on the same day. Many Australians use them as a very flexible, convenient way to cover both planned purchases and unexpected expenses. If either of those two scenarios applies to your circumstances, you might be wondering how does a quick cash loan work?

What are the repayment periods for Australian quick cash loans and how much can I borrow?

Cash loans are used to provide quick cash loans in Australia, with amounts ranging from $2,050 to $5,000. This type of loan is always unsecured, so you can use it for anything you want. Repayment periods range from just 16 days up to two years. With Savvy’s quick cash loans, you decide how much you borrow. You also set how long you want the repayments to run.

  • The majority of quick cash loan providers are online and offer 24/7 access to services
  • Applying for a quick cash loan is convenient. Your application will often get processed and approved within the hour, or on the same day
  • Repayments and fees are fixed, based on a percentage of the loan amount

Quick cash loans offer fast access to cash, just like payday loans, so are they the same?

Quick cash loans are one of the more transparent and convenient ways to borrow. Lenders operate responsibly within strict guidelines to ensure consumers are protected. To understand why, it’s necessary to know how quick cash loans differ from payday loans. It’s also very useful to consider part of the recent history of lending in Australia.

Payday loans emerged in the US and hit the shores of Australia in the nineties. The industry grew quickly, and lenders often charged massive amounts of interest. Borrowers were free to take out multiple agreements simultaneously. Payday loans and irresponsible lending saw spiralling debt become common and soon, Australian regulators had seen enough. When the 2008 global financial crisis hit, governments, borrowers, and institutions rapidly changed their attitudes to credit. It transformed the lending landscape and spelled the beginning of the end for payday loan providers in Australia.

Do quick cash loan fees accumulate?

Even today, quick cash loans sometimes get associated with the ‘payday loans’ of the past – but in reality, they couldn’t be less alike. The only common factors are relatively small loan amounts and options to repay over shorter periods. The Commonwealth government abolished true payday loans in 2013 with the introduction of its small amount credit reforms. In terms of structure and regulation, today’s payday loans are essentially the same product.

  • Fees on quick cash loans are capped. The maximum a lender can charge for establishing an agreement is $400. The monthly fees are also capped at no more than 48% of your loan amount each year.
  • Debt Spiral Caps provide extra protection for quick cash loan borrowers. Whereas in the past, shorter-term lenders used extortionate late fees to generate revenue – loan providers won’t charge more than 100% of the original loan amount in default fees.
  • The Credit Act, introduced in Australia in 2013, means quick cash loans are no longer a vehicle for debt spiralling. If an applicant has taken out two or more small loans in the previous 90 days, lenders must apply the rebuttable presumption test. That also comes into effect if an applicant is currently in default of another SACC agreement.

How do today’s Australian quick cash loans fit my busy lifestyle and intermittent income?

Australia was one of the first nations to recognise widespread growth and problems within the short-term loan industry. That prompted a move to the far stricter regulatory system we see today. The 21st century continues to produce increasing demand for flexible loan products – fuelled by the needs of a changing workforce. Higher numbers of people are self-employed or working on temporary contracts, and more of us work outside traditional 9-5 roles.

Responsible, accessible lenders and clear regulatory guidelines help make quick cash loans an extremely safe and popular form of borrowing. For those on shorter-term employment contracts, shorter-term borrowing options make sound financial sense. Instantly available lenders, with 24/7 online access also suit the needs of the modern worker. The small amount credit reforms created a new breed of responsible lenders – offering loans for the way we live.

Can I apply for a quick cash loan online?

While quick cash loans represent a highly regulated and safe way to borrow smaller amounts – applying couldn’t be faster or easier.

  • Just submit an online application and answer questions about your employment status. Lenders will request that you itemise all of your expenses and income. They’ll ask you questions about your marital status too.
  • You’ll be asked to supply documents that support your application and prove your identity – such as a driving licence, government ID card, or passport. You’ll need to scan and send proof of address – which might be in the form of a utility bill. The provider will also ask for copies of your recent bank statements and payslips.
  • You’ll then just need to state how much you want to borrow, and the lender may ask you how you intend to use the funds.

Once an application is submitted, turnaround is fast. In some cases, the loan provider may ask further questions or seek additional supporting documentation. When your application is approved, you’ll be able to sign the loan agreement digitally. After that, funds get transferred to your nominated bank account.

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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.