One of the major differences between payday loans in Australia and the rest of the world, is the cap on fees introduced by the Australian Government. This is good news for borrowers in that small loans under $2000 and between 16 days and 12 months in duration are capped to a 20% establishment fee and a 4% monthly fee. It's a simple fee structure that's easy to understand and almost universally charged by all payday lenders. Most of our loans are around 30 days in duration. This means that if you applied for a $400 loan over 30 days then your total repayments equal $496.
We can offer these small amounts economically because the entire process is online, from your application right through to when your loan is repaid. The application takes as little as 5 minutes and you'll have an answer in less than an hour.
Our Payday Loan customers all have regular incomes and earn more than $500 a week. Most customers are using payday loans to cover temporary cash shortfalls over the course of a month. Often customers tell us that they have been hit with two or three unexpected bills at the same time, there has been a change in their pay cycle for some reason, or it's a particularly busy or expensive time of year, say around Christmas and school holidays. And meeting repayments does not always go according to plan either. Generally we try to avoid levying fees where possible. This can be done by making part payments, or catching up on repayments, thus avoiding extending the term of the loan.
Sometimes we are asked if we do credit checks when assessing a loan application and the answer is yes, but not always. We check the credit file for first time borrowers, but if you are in need of any subsequent loans we do not always find it necessary to make further credit inquiries. The most important information that we collect regarding your application are your bank statements. We use this information to assess whether you can afford to meet your repayments. We like to know that all our customers can afford to repay their payday loans on time. This helps us manage our business, and helps of customers avoid late payment and dishonour fees.