How Do Fast Cash Loans Work?

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Last updated on May 4th, 2022 at 03:15 pm by Bill Tsouvalas

How Do Fast Cash Loans Work?

All cash loans work in the same way, they are consumer loans which work on an amortized schedule.

They start with a funded amount and then paid back through equal repayments over a fixed loan term. Typically they are processed fairly quickly which will see funds in your account on the same day of applying.

You can apply for amounts from as low as $300 going all the way up to $5,000. Higher loan amounts are available which would fall into your standard personal loan offer. 

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Below is our comprehensive guide on how cash loans work ​

First you need to apply for a cash loan

The first step is to apply, there are many different options available to you, cash loans now are predominately an online business so this is the best place to start, you have other options such as pawnbrokers but online is the most convenient and provides the best deals on the market. Going online and searching for companies is the way to go. Once you have settled on a provider, applying for a cash loan is quite a simple process that will start on the selected companies website:

  • Submit your online application – the application will ask you questions about your employment, residential address, income, expenses, living arrangements, marital status, and a few other bits and pieces.
  • Upload supporting documents – documents like bank statements, payslips, ID card will be requested.
  • Select the loan amount required and the loan purpose, once this has been done you will need to wait a little for approval

How long does it take to get approved?

It takes generally an hour to get an approval, however, if further clarifications are required it may take up to 24 – 48 hours to have the money in your account. If the lender’s loan system doesn’t provide you with an automated approval based on the information submitted its will then be required to be assessed by a loan officer.

What will a loan officer do?

  • A loan officer if required may call or email you to discuss a range of things before finalising your approval:
  • Discuss items such as any transactions in your bank account which they cannot ascertain like recurring repayments that have not been disclosed on your application form
  • They may ask you further information relating to your employment start date and income if your income fluctuates or it doesn’t seem to follow a pattern on your bank statements
  • If there is additional income credits that don’t relate to your permanent job, they may request for more information, it may be that you have a second job or it may be that your partners income is going into the account
  • They may ask about an Afterpay, Zip or any other Buy Now, Pay Later payments they can see which has not been disclosed in your application
  • They may ask about your relationship status if there is contradicting information on your application against the supporting documents.
  • They may ask for additional supporting documents, example, if you earn income from centerlink but have not sent through an income statement from MyGov they will ask you to send the document across.

A loan officer will either call or email you to discuss and gather up what’s required to finalise an approval. Its best to provide any additional supporting documentation to your loan officer quickly. This will reduce and delays. 

Once the loan officer has completed all the relevant checks, they will then provide a final decision on the application.

What happens after I get approved?

The process once approval has been issued is quick and easy.

  • The final loan amount required is established
  • Final loan documents are generated by the lender and sent to you, most lenders now have e-signing capacity. You will not be required to print, sign, scan and email loan documents back. With e-sign you can view, review and sign your loan documents on any available device, this could be your mobile, tablet, or PC.
  • Certified ID, the lender will require a certified ID or license, some lenders have online verification of ID cards, whereas others will require you to physically have you ID certified by a Justice of the peach, police officer, medical practitioner or any other authorised person. The physical requirement to have your ID certified is quickly becoming a thing of the past, most lenders are verifying ID digitally now. Most likely within a few years certified ID from an authorised person will become obsolete but for now there are still a few that require it to be done this way.
  • Once you loan document pack has been completed online, you loan will then proceed to the settlements department, they will review all your final documents, if all is well, they will fund your loan.

Can I request loan statements?

Yes, once your loan has been funded you will have access to the lenders support line, all contact details will be provided to you so you can make contact via email or phone.

Can I change my repayment amount?

Not under normal circumstances, however, if for example, you fall into some kind of financial hardship due to a loss of employment, you can discuss with your lender a potential temporary repayment plan that allows you to continue to pay smaller payments or an amount that you can afford until you can afford to cover your regular repayments.

Can I change my repayment cycle?

Yes, usually you can change your repayment cycle to match when you salary is paid or for any other reason that will make it easier to manage your finances.

What is the establishment fee to the loan?

The lender establishment fee varies from lender to lender. On a SACC loan, which is a loan up to the maximum amount of $2,000 generally will not exceed 20%. On higher loans amount all fees will be disclosed upfront before you proceed with the finance. 

Do I need to provide security?

No. For any loan amount higher than $2,000 it may allow you to get a better interest rate if you provide security, such as a car, but generally any loan under $5,000 security is not the norm.

I have kids with my ex-partner, they don’t live with me, are they considered defendants?

No. If your kids are not living under the same roof, from the financiers point of view they are not considered dependent. If that is your current arrangement, you are most likely paying child support. Any child support being paid is factored in and considered a recurring expense when the lender calculates your affordability.