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Understanding Interest on Your Instant Loan

Businessman displaying the words Interest Rates on a virtual screen
Businessman displaying the words Interest Rates on a virtual screen

There are always times when we need a little extra money to pay off unexpected medical bills or personal expenses. This is when fast cash loans come in handy. Although short term lenders in Australia, are required by law to find out your requirements and objectives, you don’t have to complete a lot of paperwork to get a fast cash loan approval. Most lenders calculate your loan repayment amount by taking into consideration the amount of money you’ve borrowed, the loan repayment tenure, and your income cycle. Most lenders allow first time borrowers to borrow an amount between $100 and $1000. Once the borrowed amount has been repaid on time, the borrowing limit is increased to $2000.

How is Interest on Your Instant Loan Calculated?

Each short-term lender formulates a unique cost structure for loan repayments. The maximum amount a lender can charge is an establishment fee of 20% of the loan principal and a monthly fee of 4% of the loan principal, payable every month. Many lenders however will charge less than this. Penalties are charged if the repayment is not made on time, so it’s important to speak to your lender, if you know you’re going to fall back on repayments. Dishonour fees are also payable if you miss or dishonour a payment.

Eligibility for Instant Personal Loans

In order to be eligible for same day loans, you have to be 18 years of age or over, a resident of Australia, and employed in your current job for at least 3 months. You’ll have to offer proof of your income by submitting recent bank statements. This entire process can be completed online in just a few minutes so there’s no long waiting time involved. Once approved, the money is transferred to your bank account.

Why SpotMe?

Apart from the fact that we provide you access to all major short term lenders in Australia, we make the process very transparent. There are no hidden costs or administrative fees sneaked in after we’ve matched you with a lender. We understand how difficult it can be to make loan repayments when unforeseen circumstances arise. We don’t encourage loan refinancing, though. So it’s important you talk to us about your financial situation so we can find the best solution for you.

If you have any questions about small personal loans, contact us through the online chat, email at info@spotmenow.com.au, or look up our FAQ’s online.

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