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Payday Loans – Compare options & Calculate Costs

Payday loans are small short-term unsecure loans with no purchase requirements. These loans are generally used for those who need immediate cash for emergencies or unexpected bills. The cost of borrowing is typically higher than that of traditional loans. Loans are capped at $2000 and must be repaid between 16 days and 1 year.

Lenders are not allowed to charge interest on the loans. Instead they have set fees such as a one off establishment fee of 20% (maximum) of the amount loaned and a monthly account keeping fee of 4% (maximum) of the amount loaned. Other fees could include a government fee/charge or default fees.

Payday Loan Calculator

Amount Borrowed
Length of loan(min 16 days, max 1 year)

Total to be repaid: $1,240.00
Fortnightly payments: $620.00 (x2)
Principle: $1,000
Loan Fees: $240

Amounts are estimates only. The maximum Establishment fee your lender is allowed to charge is 20% of the amount borrowed. The maximum monthly fee your lender is allowed to charge is 4% of the amount borrowed each month. Source: Payday loan calculator. Payday loan calculator created by

Qualifying for a loan
Part of the popularity of payday loans is the flexibility and speed of approval. Those with irregular incomes, poor or no credit can qualify. Below is the general eligibility criteria.

– 18 years or older
– Australian citizen or permanent resident
– Proof of income (minimum of 3 months via bank statements)
– If on benefits then: If more than 50% of your income is from Centrelink, your loan payments cannot exceed 20% of your income. Some lenders may require part of your income come from elsewhere.

Compare different small loan options below
Specialist Lenders: As the name suggests, these loans are for small amounts (a bit more than payday loans), to meet any sudden emergencies or urgent needs. With a range of $100 to $5000, these loans are usually processed fast and can be a great option in case of emergencies. Learn more on applying criteria here.

Try a no interest loan: Depending on your borrowing needs and income level, you may qualify for a low or no interest loan. Certain banks and non-profits have partnered up to provide finance to low income earners for the purchase of essential household goods and/or personal services such as medical treatment.

Centrelink advance payment: If you’re eligible for or currently collecting Centrelink benefits, you may be able to get an advance payment. This is a no interest advance on your general benefit payment.

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