The increase of income inequalities in Australia over the past twenty years has contributed to the lending of short-term and small amounts of loans.
Simple and quick small loans Australia – Small Loans Australia
People have continued to have unexpected expenditures that catch them off their guard resulting in taking a small amount of loan as the only solution. Some of these expenses include repairing a car or hospital bills. Other than the unexpected finances, they may also be in preference to some people because there is easy and fast access to the money. The payment of loans should usually be in full and should take place on the next payday.
How does the Small Loan Work?
To start with, it is important to know that a small amount of loan is not secured by any collateral such as a vehicle, land or home. Some banks, however, may offer secured minor loans. It is thus important to think over about how much money you may need and how long you might take to repay it.
The lenders often vary the loan terms to the borrowers usually with the greatest limit of only 6 months. Payment could also be repaid back in a single payment, weekly or monthly plans. They also decide on your repayments once you have qualified for a loan. The amounts of interest change with the lenders that range from 2.9 % for a one-time payment to 4.4%for a monthly payment approximately. Some lenders also charge some extra fee especially when you are late in repaying the loan.
To apply, you can apply to the small loan lenders online, through a market shop or even through the mobile phone. Another method of applying is through using a credit broker then the applications gets to be screened by a panel of short term loan lenders. The panel of loaner lenders then matches you with a credit giver who can lend you a loan.
There are different types of small type loans. These may include;
- • Secured personal loans
• Unsecured personal loans
• Variable rate loans
• Fixed rate loans
• Debt consolidation loans
• The Personal line of credit
• Co-sign loans
Advantages of a small loan Australia
Small loans have many advantages especially compared to payday loans. One advantage is the credit you get comes in the form of cash. This means in form of physical notes, or even a deposit in the bank of your preference. The money can also get deposited in your mobile phone. The money is also easy to access as there are no many long procedures to be followed.
The repayment method is also simple that is affiliated to the income flow of the borrower. This advantage minimizes their exposure to debt payment methods such as credit cards.
In conclusion, small loans Australia have convenient advantages over disadvantages, especially to people who may face unexpected expenditures or people who want to start small businesses.
When applying for a small loan, decide on how much you may need and how much money you may repay. They are helpful in relieving stress with sudden expenses.