You probably heard about payday loans or cash loans countless times. Although most articles discuss about pay day loans in general, not all terms are applicable for every country. Thus, you need to understand how it works in your location in order to take advantage of this type of loan.
In Australia, cash loans function similarly. These are offered as a quick solution to an immediate financial need. But not everyone in Australia can take advantage of pay day loans. There are certain conditions you must meet in order to qualify for this loan type.
Although Australian lending institutions may impose specific rules for their own cash loans, but most lenders will agree to the following guidelines:
- a borrower must be at least 18 years of age
- should be a resident or citizen of Australia
- must have a permanent job (at least 5 months or so)
- average monthly income must not be anything less than $1000 AUD
- possess a valid social security number
- should own an active Australian bank account
As mentioned, some of the requirements may slightly differ with additional terms for some companies but the guidelines mentioned above will at least give you an idea whether or not you qualify to apply for pay day loans. Some lenders may conduct credit checks while some will not. If credit verification is conducted, it means that there is a possibility that your cash loans will not be approved in case of a bad credit score or poor credit history.
As for collateral, it is not required by a majority of lenders. Approval period also varies to as fast as within 5 minutes to as long as 5 business days. Once approved, the loan amount will be credited directly to your bank account. Application on the other hand is accepted either online or in person with the need to physically present proper documentation or send them via fax for verification purposes. You may refer to your chosen financial institution for specific terms and conditions.
Other variations is evident in terms of loan amount allowed and repayment period provided. Cash loans amount in Australia starts at $50 AUD to as high as $1,500 AUD. The repayment period on the other hand is normally within a week or seven days to as long as three months on maximum. Again, you may need to confer with the lending company of your choice to find out how much they can let you borrow and how long they allow you to pay for the loan. You should also learn about other relevant information including interest rates or late payment fees, if any. You may even need to sign contract which enables the lender to file a lawsuit against you in a local Australian court in case of non-payment of your pay day loans.
With this information, you now know how Australian pay day loans or cash loans work so you can be confident enough in case you apply for one.