How to Get a Micro Loan in Australia

With the rise of the internet and the digital economy, it’s never been easier to start your own business. However, if you’re not a millionaire or even an upper-middle-class professional, then you may have trouble getting started without some help. That’s where micro loans come in.

If you’re looking for a micro loan, some lenders can help you in Australia. These loans are easily accessible as long as you’re eligible. 

In this article, we’ll talk more about what micro loans are and how to get one.

What this article covers:

What Is a Micro Loan? 

A micro loan is a small loan given to individuals or groups who need financial aid to start up their businesses. These loans are used in Australia to help people who might not otherwise be able to get funding due to their lack of collateral or bad credit history. 

In other words, micro loans provide consumers with access to credit when traditional banks may not be willing or able to offer it. 

micro loan

Where to Get a Micro Loan in Australia

Getting a micro personal loan in Australia can be a difficult process, especially if you don’t know where to start.

Luckily, there are lenders who offer micro loans online, so getting one can be as convenient as applying at home. This is the current trend in the industry to make the process easy for borrowers.

However, since there are a lot of lenders available, you’ll probably need a loan finder to help you find the right one for your needs.

How to Get a Micro Loan in Australia

To get a micro loan, be wary of the following:

  • Decide How Much You’ll Need: If you’re starting up a company, it’s best to always know how much you’ll need for it. Oftentimes, business owners already have a plan for how much they’ll need for their business, so it shouldn’t be a problem for you. For example, apply for a $400 loan from direct lenders if you want to get additional sewing machines for your small sewing business.
  • Find Out If You’re Eligible: It’s not as stringent as other kinds of loans to be eligible for a micro loan in Australia.
  • Explore Your Options: There are many lenders in Australia that offer micro loans, so it’s better to compare your options to see which one best suits your needs before committing to one. 
  • Prepare Your Requirements: Make sure that you have all the requirements for getting a micro loan. Get them ready ahead of time so that when you apply, it’ll be a smooth process.
  • Apply for One: Once you find the right lender for you and find out you’re eligible, apply for one. Usually, you can apply online from the comfort of your home. Also, try to seek micro loans with interest rates lower than 10% as much as possible.

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Eligibility

While the eligibility criteria might vary per lender, the following are the commonalities among them that you should have or be:

  • 18 years old or older on the day of application
  • Australian citizen with a permanent address
  • Personal bank account

It’s important to take note that micro loans are often for those who don’t have either collateral or a top-notch credit score, so being eligible may not be as hard as for the other kinds of loans. Basically, getting small loans with bad credit won’t be a problem.

There are even non-profit micro loans with zero to low-interest rates.

Requirements

Take note that the requirements needed per lender will vary, just like with their eligibility criteria. However, they’ll mostly ask for the following:

  • Contact Details
  • Employment Details
  • 100 points of identification
  • myGov Account Details (if applicable)
  • Internet Banking Details

micro loans australia

How Much Can I Get for a Micro Loan?

The amount you can borrow will usually range from $100 to $50,000. You can even get a loan for as low as $50 instantly in Australia. It’s comparably lesser compared to personal loans or other kinds of loans. Micro loan lenders rarely offer six figures. 

Conclusion 

A micro loan is a great way to get the money you need. It’s a wonderful option that can help you achieve your goals and make a positive impact on your life. You only need to be eligible and have the requirements to get one.

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