What You Need to Know About Payday Loans

If you have a low income or are on a tight budget, unexpected expenses can be a major setback. The common quick fix for most Australians is to obtain fast loans.

Is taking a payday advance loan a smart financial move? Discover the ins and outs of payday loans below and make an informed decision that’s right for your unique situation.

What this article covers:

What Is a Payday Loan?

A payday loan is a small loan typically ranging from $200 to $2,000. These short-term payday loans have a repayment period of 16 days to one year.

They are designed to cover unexpected expenses that can’t wait until your next payday. Such expenses include house and car repairs, medical bills, vet costs, etc. Most payday loan lenders allow you to use the funds for almost any emergency expense.

payday loans

Payday Loan Cash Advance Eligibility Criteria

Payday loans are typically available to those who are employed, are at least 18 years old, and have a regular income. 

Lenders often require proof of income, such as pay stubs or bank statements. Some lenders also conduct a credit check to assess the borrower’s creditworthiness. 

That doesn’t mean you can’t access loans if you’re unemployed or have a bad credit score. Your options might be limited, but some lenders can offer you loans best suited to your circumstances. More on that later!

Looking for unsecured payday loans? Because the loan amounts are relatively small and don’t require security.

Rates and Fees 

Australian Securities and Investments Commission (ASIC) regulates the payday loan industry in the country. It sets the maximum legal fees applicable to loans. 

In Australia, payday lenders don’t use APRs. Instead, they charge various fees, including an establishment or upfront fee, a monthly fee, and a default fee.

The table below shows an overview of the maximum fees for up to $2,000 according to ASIC guidelines.

Payday Loan Fees  Maximum Legal Fee
Establishment fee 20% of the amount borrowed
Monthly fee 4% of the amount borrowed
Default fee Double the amount borrowed

The maximum interest rate on payday loan advances in Australia is 24% of the loan amount (establishment fee and monthly fee). The exact rates will vary by lender, but most charge the maximum legal rate. That’s why you always check for the most competitive interest rates.

payday loan

Interest Rates on Payday Loans Between $2,001 and $5,000

While most advance pay loans are capped at $2,000, you’ll come across lenders offering up to $5,000 paydays loan.

For loans between $2,001 and $5,000, the maximum establishment fee is $400, and interest is 48% per annum of the principal.

Pros and Cons of Payday Loans Online in Australia

The benefits of using payday loans include quick access to funds, often within 24 hours, a fast and convenient application process, and minimal eligibility requirements.

The main downside is the high-interest rates that can lead to a cycle of debt. If you’re unable to repay the advance payday loans on time, you might incur additional fees. Late payment or defaulting might also damage your credit score.

Types of Payday Loans in Australia

Payday lenders offer different types, depending on the borrower’s circumstances. Here are the most common types of payday loans:

  • Payday loans with bad credit 
  • Cash advance no credit check
  • Cash advance loans Centrelink 
  • Small payday loans
  • Same-day payday loans
  • Payday loans for unemployed people
  • Payday loans deposited on weekends
  • Online payday loans

Bad Credit Payday Loans

Having a bad credit score doesn’t mean you can’t get a loan. However, your options might be limited. You have to shop around for lenders specialising in payday loans for bad credit. These lenders use other criteria, such as income level, to assess your ability to repay the loan. 

Lenders advertising guaranteed loans for bad credit don’t usually tell the whole story. There are no guaranteed payday loans, and you might fall for scams.

Legitimate bad credit payday loans direct lenders have eligibility criteria for lending. 

pay day loan

Cash Advance No Credit Check

If you don’t have a borrowing history or have a bad credit rating, your best option is payday loans cash advance, no credit check. 

Credit providers usually perform a credit check once you submit your loan application to know your creditworthiness. But with payday loans with no credit check, the lender doesn’t request your credit report. 

Instead, the lender uses your overall financial situation, like income and financial obligations, to determine your likelihood of repaying the loan.

Cash Advance Loans Centrelink 

Some lenders offer quick cash advance loans to people who receive Centrelink payments. These loans are designed to provide short-term financial relief to those receiving permanent government benefits, such as the Age Pension and Disability Support Pension.

You will not qualify for most loans if you only receive temporary Centrelink payments such as job seekers or youth allowance. 

Another eligibility requirement is a mix of income sources. If 50% of your income is from Centrelink, then your loan repayments shouldn’t exceed 20% of your income.

Small Payday Loans

These are generally small loans ranging from $200 to $2,000. So obtaining a small payday loan of $100, $200, or even 500 is possible. These are often short-term payday loans that you can repay on your next payday.

pay day loans

Same-Day Payday Loans

Lenders process the loans quickly, typically within 24 to 48 hours. But if you want to receive your funds in one hour or a few hours, choose a lender specialising in same-day payday loan cash.

Ensure you submit all the required information and documents when applying to avoid a back-and-forth that can delay your loan approval. 

Payday Loans for Unemployed People

Unemployed applicants often face rejection from most lenders. However, a few credit providers specialise in loans for unemployed people. 

That doesn’t eliminate having a regular income as an eligibility criterion. Instead, these loan types cater to people with a regular income but don’t work a 9–5 job, for instance, self-employed people.

Payday Loans Deposited on Weekends Australia

Most lenders in Australia process loan applications and deposits during weekday business hours. If you apply for a loan on the weekend, you may not receive your funds until the following business day.

But if you need instant weekend payday loans, you’re not doomed. A few lenders process your loan application and deposit the funds even on Saturday or Sunday.

You just need to do proper research to find them—or find them hassle-free through Orange Loans.

Online Payday Loans Australia

Almost all payday loan providers are online lenders. You don’t have to leave your home to obtain a pay advance loan. 

However, there are risks associated with online loans, including the potential for scams and fraud. Avoid too-good-to-be-true deals and unlicensed lenders. Research and ensure you’re dealing with a legitimate lender before applying for a loan.

By applying through Orange Loans, you can eliminate the stress of vetting a direct payday loan lender. We have a network of reputable, licensed, and responsible lenders who want to help you.

instant payday loans australia

Direct Lenders vs Lender-Finders

When obtaining fast payday loans, you may come across two types of services: 

  • Direct lenders
  • Lender-finders

While both options can help you get a payday loan, there are some key differences between the two.

Overview of Direct Lenders

Direct payday lenders offer loans directly to borrowers. When you apply for a loan with a direct lender, you’ll deal with that company throughout the loan process, from application to repayment.

However, your experience will only be great if you find a reputable direct payday lender. You must take time to research and evaluate lenders carefully to avoid scams, fraud, and debt traps.

Need a specific type of loan? For instance, payday loans no fax, express loans, alternative payday loans, or payday loans without checking account requirements? The more specific your situation is, the longer it might take to find lenders specialising in such loans.

Overview of Lender Finders

Lender-finders, like Orange Loans, matches borrowers with lenders. 

When you apply for a loan through a lender finder, they will send your application to multiple lenders on their database, who will then review your application and decide whether to approve it. This can be a convenient option for comparing offers from multiple lenders and getting the lowest rates on payday loans.

If you need cash urgently and want to find the best lender for your situation without wasting time, apply via Orange Loans now. 

We cannot speak for other lender finders, but Orange Loans only works with reputable lenders.

pay advance loans

How to Apply Through Orange Loans

Orange Loans offers a quick and easy online application process. Our platform is available 24/7, so you can apply whenever you need urgent money. 

Here is our online loan application process:

  1. Fill out the online application and submit it
  2. Assess the offering of the lender we pair you with
  3. Sign the loan contract if it’s favourable for you
  4. Receive the funds

Once you sign the loan agreement, you’ll deal directly with the lender from that point. 

FAQs

Does Orange Loans Charge an Application Fee?

No. Applying for a loan through Orange Loans is free.

I Have Bad Credit, Can I Still Get a Payday Loan?

Yes. There are bad credit payday loans where lenders use other eligibility criteria instead of your credit history.

How Long Do Payday Loans Stay On Your Credit File?

The credit enquiries payday loan lenders perform might remain in your report for five years, while the payment history stays for two years.

Can I Get Cash Advances Loans Online?

Yes. You can find several online cash advance lenders in Australia.

How Can I Get a Payday Loan Fast?

The fastest way to get a payday loan is to apply through Orange Loans and ensure you submit all the required information.

Can I Get Guaranteed Payday Loans No Matter What Australia?

No. Be wary of online lenders who advertise guaranteed payday loans no matter what in Australia. You must qualify for a loan to obtain it.

advance pay loans

Conclusion 

When you’re financially tight and need cash fast, a payday loan can give you a breather. Ensure you work with legitimate lenders and borrow amounts you can afford to repay comfortably. You don’t want to end up in a worse financial position than you were.

If you want a quick way to find the best lenders for instant payday loans in Australia, you can rely on Orange Loans.

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