Nick BendelNick BendelJun 26, 2018(1 min read)

Depending on the lender, you’ll generally be given between 16 days and 12 months to repay a $1,200 payday loan. 

As a general rule, the longer your loan term, the more the loan will ultimately cost you, because most payday lenders charge monthly account-keeping fees.

Related FAQ's

What's the interest on a $1,000 payday loan?

Payday lenders aren’t allowed to charge interest on $1,000 payday loans (or any other payday loans). However, they are allowed to charge high fees, which may include:

  • An establishment fee of up to 20 per cent (or $200)
  • Monthly fees of up to 4 per cent (or $40)

Depending on the length of your loan, here is the maximum amount you would have to repay with a $1,000 payday loan:

  • 1 month = $1,240
  • 2 months = $1,280
  • 3 months = $1,320
  • 4 months = $1,360
  • 5 months = $1,400
  • 6 months = $1,440
  • 7 months = $1,480
  • 8 months = $1,520
  • 9 months = $1,560
  • 10 months = $1,600
  • 11 months = $1,640
  • 12 months = $1,680

How much does a payday loan cost?

Payday lenders can’t charge interest on payday loans. But you might be charged these fees:

  • A one-off establishment fee of up to 20 per cent of the loan
  • A monthly account-keeping fee of up to 4 per cent of the loan
  • A government fee
  • A penalty fee (if you default on the loan)

For example, imagine you took out a $1,500 payday loan with a 12-month loan term and fortnightly repayments. Here’s how much you might be charged:

  • An establishment fee of $300
  • An account-keeping fee of $60 per month (or $720 over 12 months)

As a result, your repayments would be:

  • $96.92 per fortnight
  • $2,520 in total (equivalent to an interest rate of 68 per cent per annum)

How much does a $1,200 payday loan cost?

With $1,200 payday loans, you can be charged an application fee of up to 20 per cent (or $240) and a monthly account-keeping fee of up to 4 per cent ($48) – although you can’t be charged interest.

If the lender charges a monthly fee, the longer your loan term, the more you’ll have to pay. Here’s how the fees can add up:

  • 1 month = $48
  • 2 months = $96
  • 3 months = $144
  • 4 months = $192
  • 5 months = $240
  • 6 months = $288
  • 7 months = $336
  • 8 months = $384
  • 9 months = $432
  • 10 months = $480
  • 11 months = $528
  • 12 months = $576

Should I take out a payday loan?

As a general rule, you should take out a payday loan only if there are no other options. That’s because payday loans are usually very expensive.

Payday lenders can’t charge interest – they can only charge fees. But the fees can be steep, so your borrowing costs might be equivalent to paying an interest rate of more than 500 per cent.

Should I take out a $1,000 payday loan?

As a general rule, you should think very carefully before you take out a $1,000 payday loan – and proceed only if you’ve explored all other options. That’s because payday loans generally have very high fees.

Before you take out a $1,000 payday loan, you might want to call the National Debt Hotline or investigate the No Interest Loan Scheme.

How do $1,500 payday loans work?

A $1,500 payday loan is a loan that is likely to have a fast approval process and charge high fees. Depending on your circumstances, you might be able to receive the money within an hour.

However, if you want the lender to give you the money almost instantly, and without conducting an in-depth credit assessment, you’ll have to pay for the privilege. The lender can charge you a one-off establishment fee of up to 20 per cent (which would be $300 for a $1,500 payday loan) and a monthly account-keeping fee of up to 4 per cent (or $60). Payday lenders can only charge fees – not interest.

Are $500 payday loans dangerous?

Payday loans can be dangerous because they come with high fees, which could cause problems if you’re struggling with debt. On a $500 payday loan, the lender may charge an establishment fee of up to $100 and a monthly fee of up to $20.

That’s why you should look at a $500 payday loan as an option of last resort – something to consider only if you’ve explored all other options. If you do take out a $500 payday loan, you should have a plan to repay the loan and get out of debt.