Safrock is a lender-finder. We do not offer financial advice when it comes to small loans. Consider seeking independent legal, financial, taxation or other advice to check how the information and ideas presented on this website relate to your unique circumstances.
In need of a small amount of extra cash? Safrock is here to help with simple, free, 100% online applications, and a lender-finding service that is ready to find you a lender, FAST.
What Are Small Loans?
Small loans are financial products that can be used for unexpected or emergency expenses. Generally, small loans are around $2,000 and the repayment can differ depending on the lender.
At Safrock, our small loans start at $2,500 and you can choose a loan period from 13 to 36 months, depending on the amount.
Why Apply for a Small Personal Loan Online?
When taking out personal loans, Australians have traditionally reached out to their local bank branch. In the past decade though, The Big Four have somewhat relinquished their dominance while online lenders pave the way to the future of finance. This is good news for consumers as it has opened up the market to cheaper and more readily available lending options. Without the overheads that come with the bricks and mortar, savings can be passed on to you.
Online lenders offering secured personal loans, like Safrock’s lenders, can potentially offer lower rates, better service and more flexibility. Applying for a small loan online could be a fast way to cover unexpected expenses that are not accounted for in your budget.
Here’s why you should (and maybe shouldn’t) apply for a small loan online:
|What should you get a small personal loan for?||What should you probably not get a small personal loan for?|
|✔Emergencies||X Paying off a student or university loan|
|✔Debt consolidation||X To purchase something that you could easily save for|
|✔A birthday, wedding or special event||X To make ends meet between paydays|
|✔To improve your credit rating||X Recreational purposes like shopping sprees|
|✔Renovations that add value||X Investments|
What Could A Small Loan Cost?
All online applications with Safrock are 100% free. With loan options from $2,500 up to $25,000, your repayments will vary depending on the amount, duration, the lender and the interest rate. You can use our loan calculator from any page on our website to see just how low your repayments could be. It is important that you work this estimate into your existing budget to make sure you can afford to take out the loan amount you want.
Other Costs Involved With Small Personal Loans Online
As a lender-finder, we cannot guarantee the costs of individual lenders, however, we can give you an idea.
- Establishment fees: These are the fees that are usually charged at the beginning of your loan, once the money is deposited into your account. Small loans can incur an establishment fee of up to 20% of the loan amount, however, these fees vary significantly between lenders.
- Account fees: Just like many bank accounts, lenders often charge ongoing account keeping fees for your personal loan. These can be around 4% of the loan principal and are generally charged each month.
- Early termination fees: These fees are not charged by every lender for every loan type, but they can be charged if you finish paying out your personal loan before the end of your loan term. These will always be outlined in your contract.
- Missed payment charges: If you are ever late in making a repayment, or miss one altogether, you will always need to transfer enough money to bring your loan back up to date. Most lenders will also charge a late payment fee, particularly if you do not have enough money in your account for them to deduct.
- Rates: All of the above considerations, including the interest rate, should be packaged into one comparison rate percentage. This rate makes it easier for you to make quick evaluations of different lenders.
What Are the Positives of a Small Loan?
Small online personal loans have become a popular option amongst consumers who need fast cash for a variety of reasons. Small loans are:
- A good way to consolidate existing personal debts, rolling many smaller payments into one larger payment that is easier to manage.
- Usually able to offer lower rates than credit cards.
- Paid off in regular instalments. You pay a set amount for a specific period of time which is easy to budget for.
- Easy to find as there is so much information and many options available online.
- Normally approved quickly so you get a result fast. The process is easy and generally stress-free.
- A fast way to pay for emergencies or large purchases that you cannot avoid.
What to Consider Before Applying for a Small Loan
As with all financial products, there are a few drawbacks to small loans that you should consider. A comparison service like Safrock though can provide you with the right advice and a multitude of reputable options, reducing the risk for you.
- You are not actually paying down your debt with a personal loan – you are just getting a different type of debt;
- High-interest rates are normally charged for customers with poor credit ratings;
- Fees and charges can tally up quickly, meaning you could pay far more than the actual loan principal in the long
- The number of online lenders out there means there is more opportunity of getting scammed.
What is the Difference Between a Small Loan and Other Types of Loans?
There are so many different types of loans out there that it can be hard to know which option to choose for the situation you find yourself in. However, with all of these different features and offers to consider, there is one aspect of loans that remains consistent no matter the loan type or lender: you borrow money and make regular repayments over a specific period of time, including fees, charges and interest. Being approved for a loan gives you access to money when you need it most. Due to their popularity, the terms and conditions of most small personal loans are relatively straight-forward and easy to understand.
But there are differences between small loans and other types of loans. These differences may help you decide which loan type is best for you. Safrock helps find you loans from $2,500 to $25,000, with varying loan periods. Different lenders and websites have different parameters for their loan types, so below we’ve broken our loans down into three categories:
The Types of Loans Our Lenders Offer
Small loans: Loans from $2,500 to $4,500 have the option to schedule your regular repayments from 13 to 24 months. These small loans are normally used for personal expenses, such as medical expenses, car and home repairs, and the replacement of old or broken appliances.
Medium loans: Our medium amount loans range from $5,000 up to $10,000. These amounts give you the option of a repayment period of up to 36 months.
Large loans: While large loans with banks and other types of online lenders may be used for things like mortgages, at Safrock our large amount loans are between $10,500 and $25,000. Similarly to our medium size loans, they have loan terms ranging between 13 and 36 months.
Generally speaking, our medium and large amount loans can be used for second-hand vehicle purchases, home renovations that add value to your property, or a well-deserved holiday. As our lenders do not offer loan terms of more than three years, our medium and large loans will require you to have enough income to make your repayments in the specified time.
How Do I Decide?
If you feel a little overwhelmed by the number of options out there and aren’t sure which loan type is right for you, ask yourself the following questions:
- How much can I afford? It is smart to be prepared and be aware of exactly where you stand with your finances. Have a weekly budget or keep track of your spending and expenses. This will help you understand how much or how little disposable income you have in case of an emergency.
- How much money do I need to borrow? Applying for a little extra may be tempting, but it’s an easy way to pay interest charges that you really don’t have to. Stick to your calculations and only apply for the exact amount of your purchase.
- How long do I want the loan for? If your budget allows it, always opt for a shorter loan period. This will ensure you do not pay additional interest or monthly charges. A longer loan period can look enticing as the monthly repayments will be less, but a short term loan is always cheaper in the long run.
- Do I need the option to access more money? Safrock’s lenders only offer fixed amount secured loans. If you think you might need access to more funds you will only be able to by taking out a second loan. If you need the option of refinancing, it may be better to go through a bank or a line of credit with an overdraft feature.
Am I Eligible to Apply for a Small Loan?
There are a few things that you will need to provide us with before you can apply for a loan. Be sure that you have these items ready so that your application is quick and easy:
- Internet banking details
- myGov account details
- Contact information
- Employment information
- Information about your asset (this could be your car, motorbike, caravan or boat)
As Safrock is not a lender itself, we do not perform the application assessments. However, most lenders will need proof of the following before you are approved for a loan:
- 18 years or older
- 100 points of identification
- Australian citizen or permanent resident
- Receiving a regular income for the last 90 days
- Have a valid mobile number and email address
What Do We Do?
You can trust that all loans found through Safrock’s lender-finding service are legitimate, reputable and reliable. We only partner with the best that Australia has to offer. Safrock is not a payday loan service. The purpose of our loan amounts and terms is not to make ends meet between paydays, so you can be sure that we are genuinely here to help. We’re ready to find you a lender that is ready to give you a fair go.
Finding a small loan with Safrock is completely free and Australia-wide. We strive to be the only personal loan comparison site you’ll need. Our application form should take just minutes to complete and is done 100% online.
How to Apply
Step 1: Apply Online
Have all necessary documentation handy and complete the form fast. Choose your amount and loan duration and the magic begins.
Step 2: Meet Your Match
We will then present you with a comparison of personal loans straight away, working hard to match you with the right lenders. Once you have selected your lender, we will send them your application.
Step 3: Find a Premium Loan
Your lender will then assess your application. If you’re approved, you should receive the cash straight into your nominated bank account.
What Are You Waiting For?
It’s that easy! Apply online today with Safrock and get ready to meet a lender that can give you a fair go at the small loan you need.
Strapped for cash and looking for Sydney loans? Find great rates with Safrock!