Emergency Cash Loans

1. What are Emergency Cash Loans?

Emergency cash loans are designed to help you out in times of financial distress, offering quick loan turnaround so you can make necessary payments on outstanding urgent expenses in due time. You can use an emergency cash loan to pay for medical expenses, unexpected bills, or emergency car repairs, among other urgent expenses that must be covered.

2. Types of Emergency Cash Loans

There are three types of emergency cash loans that you can take out in Australia, including short term loans, unsecured short term loans, and secured short term loans.

3. How It Works

Short term emergency cash loans, also called payday loans, are offered by numerous lenders in Australia with a loan amount of up to $2,000 and a term period of under one year. Repayments are scheduled to fall on the borrower’s payday so they are easier to make, and regulations have capped the applicable fees at 20% establishment fee and 4% monthly fee.

Unsecured short term emergency cash loans fall under the category of personal loans and, like payday loans, are given out for a period of less than one year. However, you can seek a loan amount of up to $10,000. The eligibility criteria for an unsecured loan is usually very tough, and the applicable interest expense is also very high.

Secured short term emergency cash loans are similar to unsecured emergency cash loans, however, they are cheaper as the lender covers part of the risk by holding an asset in your possession as collateral against the loan amount.

4. Eligibility Criteria

To apply for an emergency cash loan, applicants must:

  • Be over the age of 18
  • Be an Australian permanent resident or citizen
  • Have a stable income from employment or government benefits
  • 5. Examples of Emergency Cash Loans

    Lender

    Loan Type

    Loan Amount

    Loan Term

    Repayment Amount (based on a loan amount of $1,500)

    Sunshine Loans

    Short Term Loan

    $2,000

    Nine to fourteen weeks

    $396

    Safe Financial

    Small Loan

    $5,000

    22 to 52 weeks

    $396

    Nimble

    Short Term Loan

    $2,000

    62 days to nine months

    $372

    6. Advantages and Disadvantages

    Advantages

  • Fast and easy loan application process and approval
  • Quick turnaround time
  • Funding available of up to $10,000 for payment of emergency expenses
  • Many lenders accept applicants with a bad credit score
  • Disadvantages

  • High fees associated with short term loans
  • Secured loans can be risky, as failing to make timely repayments can result in loss of personal asset
  • 7. Application Process

    To file an application for an emergency cash loan, you must log onto the website of your chosen lender and fill out the online application form, submitting all necessary documentation in the process including a valid ID, recent bank statements, and income statement. Some lenders might also require you to submit asset information as well, in case you are applying for a secured loan.

    If approved, the loan amount should reach your designated bank account within a few hours.

    8. FAQs

    Do emergency cash loans require the submission of an asset as collateral?

    Most emergency cash loans don’t require you to submit assets as collateral. However, if you are applying for a secured loan, then you would be required to pledge a personal asset as collateral against the loan amount.

    Can I get an emergency cash loan instantly?

    It’s possible to get an emergency cash loan within a few hours, provided you apply during business hours. However, it might be faster to utilize the cash advance facility on your credit card or use a bank overdraft facility.