Fast Personal Loans in Australia: How to Get One and What Type to Get

According to research, over 8 million people borrowed money from Aussie banks or other lenders in 2019. Most who chose to get fast personal loans in Australia used the money for buying vehicles, while one in 10 residents opted for a payday loan. 

But what makes personal loans attractive to Aussies? Let’s find out.

What this article covers:

• What Is a Personal Loan?
• How to Get Fast Personal Loans
• 3 Common Types of Fast Personal Loans
• Can You Have Two Personal Loans at the Same Time?

What Is a Personal Loan?

A personal loan represents an amount of money borrowed from a bank or other lender with a previously agreed repayment period and fixed monthly instalments. 

The most common types of personal loans include advances for weddings, medical bills, home renovations, vacations, and unexpected events.

Another way to classify these loans is as secured or unsecured. 

Secured vs. Unsecured Personal Loans

A secured loan implies a loanee and lender including a specific type of collateral in their agreement to secure the repayment. The collaterals can cover all kinds of assets, including stocks and bonds. 

On the other hand, unsecured loans don’t urge borrowers to offer any sort of deposit. These are suitable for those seeking a personal loan fast without having to worry about a warranty. However, unsecured loans usually require a more thorough background check of the loanee. 

From this category, borrowers can choose a revolving loan with a flexible credit limit, a term loan with fixed rates and instalments, or a consolidation loan that helps loanees repay their past debts. 

Pros & Cons of Unsecured Personal Loans

The key advantage of unsecured loans is that they grant quick and easy solutions to one’s financial struggles. That is why they’re the most popular kind of Aussie personal loans. 

Another perk is that there are no risks associated with losing an asset. Since some borrowers deposit their households as a guarantee they’ll reimburse the lender’s expenses with extra fees and interest, they’re facing a danger of losing it. However, because unsecured loans won’t ask for collateral, these loans eliminate this threat. 

The downsides of this unsecured loan are the limits and smaller amounts allowed for borrowers to request. Higher interest rates than those who ask for a secured loan are another drawback to beware of. 

Finally, a tenure of five years maximum can be a massive con to some. So, if you’re not looking for a loan short-term, be sure to know the terms. 

How to Get Fast Personal Loans

If you seek the most convenient way to get a financial advance, applying for a personal loan online is the best solution. 

The first criterion to apply for a personal loan in Australia is to be at least 18 years old and possess either Aussie or New Zealand citizenship. Some eligible visas can also grant you access to borrow money from a bank or another lender. 

Full-time employment and a good credit score above a minimum of 550 will help you qualify easier. Still, many lenders accept requests from loanees with much lower credit scores. 

Applying for a Personal Loan Online 

Requesting fast personal loans through an online form usually takes between five and 15 minutes. And with no paperwork entailed, the whole procedure is much simpler and more painless for both parties. 

Also, it’s incredibly easy to verify whether the lender’s website is legit, so nothing is lost on the potential partner’s reliability. And comparing deals and rates online is less complicated, with only clicks instead of actual legwork. 

Finally, some online loans even come with lower rates because the lenders themselves have fewer business costs. 

Once approved, a borrower can normally count on a same-day transfer, with most lenders offering small quick personal loans of around $2,000 and larger instantly payable amounts of around $50,000. 

Note that the rate will still be fixed with a most common repayment period of three to seven years. 

3 Common Types of Fast Personal Loans

Getting an easy personal loan in Australia is uncomplicated if you meet minimum income requirements and have a solid credit score. Employed individuals are more likely to get fast approval on their advances, but those currently between jobs can also qualify for certain types of loans. 

Most popular loan types Australians ask for include vehicle, business, and fast personal loans for bad credit. 

• Car Loans

If you plan to purchase a new or used vehicle for personal use, you may want to consider getting a loan. In that case, your chosen lender will place a direct payment to the car dealer on your behalf. Then, you’ll be expected to repay the entire loan in equal monthly instalments over a certain pre-agreed period. 

Additionally, the buyer who requests a loan usually has to pay some extra money as the lender’s interest fee. The best interest rates start from 4.99% fixed, and any rate that ranges up to 6.59% is considered acceptable. 

Tips for Getting a Better Deal 

These fees depend on the loaner and the loanee’s balance on the payment’s due date. This means that those able to payout more than the minimum due often get a lower interest. 

Finally, it’s essential to get a flexible car loan. That way, you could repay it for several years with more economical monthly instalments. 

• Business Loans

Getting approval for fast loans and directing those financial means toward one’s business is possible. These loans usually cover several expenses related to starting a new company. 

The interest rates for a business loan in Australia typically range from 6.29% up to 15.99%, but some lenders urge the borrowers to repay with higher fees. 

3 Types of Business Loans

You can apply for one of the following types of business loan:

• Short-term loan. If your business needs a quick financial boost, you can go for a short-term loan. These fast loans usually come with repayment terms shorter than three years. 

The main advantage of short-term loans is a steady APR, while limitations in the amount you can ask for represent its major drawback. 

• Startup loan. You can apply for this loan if your company is younger than a year. Little to no credit won’t stop lenders from helping you out. However, the terms and interest rates may vary greatly depending on the tier you pick and the loan company you choose. 
• Microloans. These are the most popular types of small personal loans in Australia. So if you need less than $50,000 and don’t mind the short reimbursement period, explore this option and enhance your firm’s budget instantly. 

How Long Do Business Loans Take To Get Approved?

Waiting for a business loan’s approval can take up to two months. However, if you ask for a fast personal loan from a reliable bank or financial company in Australia, you can get the green light in 48 hours. 

• Personal Loans for Bad Credit 

Payday loans are the easiest personal loans for bad credit you can get. These are unsecured loans that get approved instantly and require a short-period payback. Unfortunately, while handy and frequently used, these advances have the highest interest rates.

To get one, you should revise your credit score and reports and determine whether you’ll be able to pay back within the short span at your disposal. 

Before selecting a bank or other lender, check out multiple options, know their fees, and shortlist the most affordable ones. 

You can also ask for a pre-approved personal loan where you’d grant the lender access to your information and previous debt so that they can evaluate your reliability for repayment. 

Can You Have Two Personal Loans at the Same Time?

Most lenders worldwide allow borrowers to have as many personal loans as they need over the year. If one’s credit score and debt-to-income ratio seem to be on point, they’re allowed to request another advance. 

The vast majority of Australian loan companies have the same policies. Your reliability will determine whether you can get more loans when you already have one. 

Still, if a person is juggling multiple debts simultaneously, many banks and other financial institutions will be prone to declining their request for another loan after a more meticulous check. 

Finally, if you need a second loan, you’d have to verify whether your lender has any limits set for these situations because some narrow a borrower’s choices to one or two loans maximum. 

Final Thoughts

This brief guide through types of personal loans will help you understand how each popular alternative works. In addition, you can find several practical tips on how to get the most out of your advance and dodge providers that charge a fortune in fees and interest rates. 

That’s why finding a trustworthy lender is vital when looking for fast personal loans in Australia. So be sure to double-check your options to learn more about the fastest, most economical deals.

If you need an instant personal loan with low interest, reach out to OrangeLoans, the most reliable and cost-effective lender. 

Whether you’re one of those purchasing a car or have an emergency expense you must deal with ASAP, our professional service will help quickly.