Compare same day personal loans

A same day personal loan works pretty much the same as any standard personal loan, it’s just the speed of approval that makes the difference.

Some lenders say you may even get access to the funds within minutes of applying, if you get approved.

It may help if you already have a relationship with a lender as they’ll have an idea of your financial history. Or you can apply to a new lender to see if you’re eligible for a same day loan.

If you’re considering signing up for a same day loan, then it’s a good idea to read any relevant Product Disclosure Statement (PDS) or Target Market Determination (TMD) documents. These should be available on a lender’s website  and you should be able to get an electronic copy on request.

It’s also important to read your loan contract carefully before signing, so you know exactly what interest rate and fees you’ll be charged and how long the loan term will be.

When looking for a same day personal loan, you may come across a type of short-term loan called a ‘payday loan’, also known as a small amount credit contract or small amount loan. Payday loans typically work differently from personal loans, and have to follow different government regulations.

Payday loans are a kind of loan for an amount of up to $2,000, with a quick turnaround time, and a period of between 16 days and a year to pay back.

The Australian Government’s Moneysmart website says you don’t pay interest on a payday loan but can be charged fees, capped at 20% of the loan amount for an establishment fee and up to 4% of the amount as a monthly fee. A default fee can be up to double the amount you borrowed.

Personal loans are typically used if you want to borrow larger sums of money and they’re usually repaid over a longer period. They’re structured like a traditional loan, where you’re required to pay back the amount you borrowed plus interest, according to a repayment schedule.

Payday lenders may offer loans to people who need money but may not be able to get a loan from a mainstream lender, perhaps due to a poor credit score or inability to meet eligibility criteria. These types of loans can be extremely risky for consumers. Moneysmart says there are cheaper ways to get money if you need it, and the Financial Rights Legal Centre agrees saying they’re better options if you need help with any financial problems.

Most lenders offering same day loans will likely have an online application form you can complete and submit on their website. The eligibility criteria may differ between lenders, but as a general rule, to apply for a personal loan, you’ll need to provide documentation such as:

• ID documents such as a drivers licence or passport to prove that you are aged over 18 and an Australian resident.
• Proof of income, typically in the form of payslips from your employer, to show that you earn a regular income that is above your lender’s minimum requirements.
• Proof of savings, typically in the form of bank statements, to give the lender a picture of how you manage your finances.
• Your employment details for the past three years.
• A list of any assets you own, including assets such as vehicles and property.
• A list of any debts you may have, such as other personal loans or home loans, credit card debts and credit limits, outstanding buy now pay later balances and the like.
• A list of your general living expenses, including groceries, utilities, streaming services, rent, medical and transport costs, school fees and so on.

You may not need to provide all of this information, but it’s a good idea to have it on hand just in case.

Some of the potential advantages of a same day personal loan include:

• The potential for quick access to funds if you need them
• The convenience of applying online

Some potential disadvantages include:

• The potential for higher interest rates than standard personal loans
• The potential for high fees and charges
• The potential to end up even further in debt if you take out a same day loan when you are already experiencing financial hardship.

If you can’t make your loan repayments on time, the consequences will typically depend on whether the loan is secured or unsecured. It’s important to understand the difference between the two.

A ‘secured’ loan is a loan guaranteed by an asset you own, such as a car or property. If you’re unable to make the required repayments on the loan, your lender will have the right to repossess this asset and sell it to recover their funds.

By contrast, an unsecured loan is not guaranteed by an asset, but if you’re unable to meet your required repayments, your lender may take you to court to recover their funds.

A court judgement will remain on your credit report for five years and can negatively impact your credit score as well as flagging you as a risk to lenders, making it more difficult to get a loan in future.

Whatever the loan type, if you feel you might not be able to make your repayments on time then contact your lender as soon as possible. You may be able to negotiate a compromise.

If you’re struggling to pay your bills or debts, Moneysmart says you’ve the option of talking to your service provider or the relevant authority to see if you can work out a payment plan. If you’re struggling financially, then you can speak with a free financial counsellor, who may be able to help you with such things as negotiating with creditors, developing budget plans or making insurance claims.

You can call the free National Debt Helpline (1800 007 007) from 9.30am to 4.30pm Monday to Friday, and get transferred to a financial counselling service in your state or territory. The Mob Strong Debt Helpline (1800 808 408) offers free legal advice about money matters to Aboriginal and Torres Strait Islander people anywhere in Australia, and is open from 9.30am to 4.30pm Monday to Friday.