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August 16, 2020

Finding Short Term Loans With Low Interest Rates

If you are thinking of getting a short term loan, it is only natural to want to find one with the best rates. Short term loans are known for having higher interest rates than regular loans with a low rate. So is it possible to get short term financing with low interest rates?

Why Do I Need A Short Term Loan Personal Loan or Payday Loan?

There are a variety of reasons why anyone will need a short term personal loan. As the name suggests, these types of loans have short repayment terms compared to installment loans. One of the most common short term loans available in Australia is a payday loan, which has terms of 2 weeks up to a month. Other forms of short term financing may have repayment terms up to one year. The maximum loan amount granted to borrowers is $2,000 but may be higher or lower, depending on the loan provider.

Here are several reasons why you will need a short term loan:

  • To pay for unplanned expenses or settle a forgotten bill
  • To bridge budget gaps when you are waiting for funds to arrive
  • To tide you over until the next payday – you may have overspent and miscalculated your budget

Some people prefer to take out a short term loan to handle life’s little surprises. Short term lending is suitable for people who only need the extra cash for a few weeks, or maybe several months. If you are the type who prefers not to get stuck with repaying a loan for the next few years, then a short term loan may be just what you need.

Need a loan today? Apply online!

How Do I Get For A Credit Like Short Term Loan?

The easiest way to obtain a short term loan is through a reputable loan provider like MagicLoan. Online lenders offer the most convenient and easy way to obtain short term financing. All you need to do is visit the lenders website, fill up a loan request form, submit, and wait for the lender’s feedback. In most cases, the turnaround time is a few hours to the next business day.

Before taking out a short term loan, ask yourself if you have exhausted all means to acquire additional cash. A short term loan can help you boost your credit score when used properly, but you must keep track of due dates to avoid late payments or delinquency.

Short term loans expose you to the following risks:

  • Rogue lenders: Predatory lenders are everywhere; thus, it is crucial to know that you are working with a licenced and authorized loan provider in Australia.
  • A cycle of debt: The ease of taking out a short term loan makes it easy to get trapped in a cycle of debt.
  • Legal problems: A responsible borrower will not encounter any repercussions in obtaining a short term loan. But you may face legal issues if you fail to pay back your debt.

Borrowers should understand before taking out a short term loan that these types of credit have very high rates and fees. To avoid encountering problems in the future, it is best to understand the interest rates and repayment schedules of short term loans.

Short Term Loans

What Rates And Options Can I Expect From Short Term Loans?

Keep in mind that short term loans are one of the most expensive types of loans in the market. Despite this fact, many people still turn to short term loans because it is convenient and easy to get and have options for poor or bad credit.

In general, a short term loan in Australia not exceeding $2,000 will be charged not more than 4% per month. This may seem small but a little calculation shows that the interest rate totals 48% in one year. A loan amount of $1,500 with terms of 9 weeks will require a fortnightly payment of $396 (20% of the loan amount plus fees). The repayment amount includes the 4% monthly fee, but may not yet include the enforcement fees. You will also be required to pay additional fees for late payments.

Where Can I Find Short Term Loans or Other Personal Loans With Low Interest Loan Rates?

If you need money fast, the best option is to apply a short term loan from an online lender or loan broker. You may be able to negotiate for a low interest rate if you have a good credit score. An excellent financial track record qualifies you for competitive short term loan rates. However, in general, short term loans have higher rate of interest compared to installment loans and other low rate personal loan from mainstream lenders.

For sudden expenses that need immediate cash, you can also look at other options such as:

  • Credit card cash advances or charge the expense to your credit card
  • Financial assistance programs in the local community
  • Government loan programs like a No Interest Loan Scheme (NILS) or low-interest loans

Being a responsible borrower also means working with authorized and legitimate lenders. Reaching out to a reputable and honest loan provider like MagicLoan can help you get the short term financing that you need in the quickest possible time.

MagicLoan.com.au (Credit Representative Number - 535991) which is an Introducer Appointed Representative of Marketplace Finance Pty Ltd (Credit Representative Number: 487316).  

MagicLoan is not a lender and does not make credit decisions. MagicLoan matches customer applications with lenders in our network based on the information provided, in exchange for a commission paid by the lender for advertising services provided. There is no guarantee that you will be accepted by a lender or that you will be offered terms suitable for your financial needs. Not all lenders will be able to provide amounts up to $5000. The time required to process and transfer the loan varies by the lender. This website does not directly endorse any particular product or service. Any information on this site should serve as opinion only. As a condition of extending credit, some lenders you may be matched with may run a credit check from a credit reference agency. Late or missed payments may be subject to increased fees and/or interest rates.

1. Subject to application being approved by the lender. Not all lenders are able to provide up to $5000

2. Subject to lenders requirements and approval. The time that it takes for the cash to be received in your account will depend on your bank’s policies and procedures. 

Consumer Advisory: MagicLoan is a loan matching service. This site will submit the information you provide to a direct lender. Upon loan approval, a direct lender may require further information from you which will be collected after we transfer you to their website or they may contact you via phone or email.

All applications will be subject to credit checks and affordability assessments in line with responsible lending. Loan terms, conditions and policies vary by lender and applicant qualifications. Late or missed loan payments may be subject to increased fees and interest rates. Not all lending partners offer up to $5,000 loans, and not all applicants will be approved for their requested loan amounts. Loan repayment periods vary by lender also. Lenders may use collection services for non-payment of loans.

Not all borrowers will qualify for a loan, the operator of this website does not engage in any direct consumer lending, we simply provide a FREE loan matching service to the public. To operate this service we receive a commission from the lender we refer you to.

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