Friendly Finance Loan Review
Find out more about Friendly Finance's small loan solutions, including their products and terms, with Savvy today.
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Friendly Finance is a financial broker based in Sydney which provides various small and larger personal loan products through its partnered lending panel. Before considering Friendly Finance, knowing how its products work, as well as the fees and terms is essential. Luckily, you can explore these details with Savvy. Delve into our review of its products and learn about the other options which may be open to you with us today!
Rates and product information are correct as of 12 February, 2024.
How do Friendly Finance's small loans work?
Through Friendly Finance, borrowers can access loans ranging from $2,001 to $4,600, with repayment terms spanning from 13 to 24 months. These loans fall under the Medium Amount Credit Contract (MACC) category, which dictates what fees can be charged by lenders. Additionally, Friendly Finance offers larger personal loans starting at $5,001 up to capped at $15,000. Borrowers have the flexibility to choose their repayment frequency (either weekly, fortnightly or monthly) without incurring additional charges for early repayments for either loan type.
The application process for Friendly Finance is online from start to finish. Applicants are required to provide personal identification, contact details, bank information, and proof of regular income to qualify. Upon submission, applicants can receive a swift decision, and if approved, funds are often disbursed as soon as the same day you apply.
What will the cost of a small loan through Friendly Finance be?
Friendly Finance provides small loans with the following price breakdown:
Loans from $300 to $2,000:
- Interest rate: up to 48% p.a.
- Establishment fee: $400
- Cost example: for a $3,000 small loan repaid monthly over 24 months, you would incur a $400 establishment fee and interest of $1,952, resulting in a total loan cost of $5,352.
It’s important to note that there are several fees which may be charged in certain situations, such as default or dishonour fees, but this won’t be the case as long as you don’t suffer any defaults or dishonours.
Can I qualify for a small loan with Friendly Finance if I have bad credit or receive Centrelink payments?
Friendly Finance evaluates loan applicants regardless of their credit score or Centrelink benefits status. While they adhere to Australian responsible lending laws by conducting credit checks, Friendly Finance places greater emphasis on an applicant's present financial situation, considering various factors to determine eligibility. Because of this, you may be able to access the funds you need even with a poor credit record.
Regarding Centrelink payments, meeting the qualification criteria related to minimum income allows applicants to apply for a loan while receiving Centrelink payments. Specifically, this means that borrowers must be earning no more than 50% of their income through Centrelink benefits. As a result, single mothers and veteran payment and age pension recipients who rely solely on Centrelink and are unemployed won’t be eligible for a loan.
What are the potential alternatives to a small loan with Friendly Finance?
Another option you have instead of applying with Friendly Finance is a small loan through Savvy. Through our simple online process and trusted lending partners, we can help facilitate the swift acquisition of the funds you need.
Here's the straightforward process of applying for a small loan through Savvy:
- Complete our application form, providing pertinent information such as your credit score, income, employment details, and preferred loan amount, which ranges from $2,050 to $5,000.
- Submit your application and promptly receive an instant automated decision from one of our partnered lenders.
- Upon conditional approval, your application will undergo assessment by your designated lender, which may necessitate additional documentation.
- Following lender approval, you'll be furnished with formal approval and loan documents delineating your loan terms, fees, repayment schedule, and other pertinent details.
- Upon signing and returning the documents, your funds will be swiftly transferred to your designated bank account, which can happen as soon as the same day you apply in some cases.
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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.
