Nick BendelNick BendelJun 26, 2018(1 min read)

As a general rule, you don’t need to provide security to get an instant approval loan. However, in return for giving you a quick loan and not asking for any collateral, the lender will almost certainly charge you high fees.

With instant approval loans, the lender can charge an establishment fee of up to 20 per cent (which would be $300 on a $1,500 loan) and a monthly fee of up to 4 per cent ($60 on a $1,500 loan).

Related FAQ's

Can anyone get instant approval loans?

No. Lenders will only give you an instant approval loan if they believe you have the capacity to repay the loan.

Different lenders have different assessment criteria, but you’ll generally have to meet certain benchmarks regarding your income, spending, employment and identity.

Your application for an instant approval loan might be rejected if:

  • You have a bad credit history
  • You don’t earn enough money
  • You spend too much money
  • Your employment status is not secure
  • You’re not an Australian citizen or resident
  • You’re not at least 18

What are instant approval loans?

Instant approval loans are payday loans that have a very short assessment process. Please note that the name is a bit misleading, because no assessment can ever be instantaneous and approval can never be guaranteed.

Taking out an instant approval loan involves a four-step process:

  1. You fill in the payday loan application
  2. Your application is assessed
  3. Your application is approved
  4. The lender transfers the funds to your bank account

With some payday lenders, the process is so quick that it may be completed within an hour. However, even if the payment is made that quickly, it might then take two business days for the money to arrive in your bank account.

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.

Why do people use no credit check loans?

People use no credit check loans when they have bad credit and need money in a hurry.

Most lenders steer clear of no credit check loans, because they believe it’s too risky to lend to people with a bad credit score. However, some payday lenders are prepared to issue no credit check loans.

A word of warning – no credit check loans generally come with high fees. Payday lenders can’t charge interest, but they are allowed to charge an establishment fee of up to 20 per cent of the loan amount and a monthly fee of up to 4 per cent of the loan amount.

Loan amount Max. establishment fee Max. monthly fee
$500 $100 $20
$1,000 $200 $40
$1,500 $300 $60
$2,000 $400 $80

How long do you have to repay a $1,200 payday loan?

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.

Why do people take out $500 payday loans?

People often use $500 payday loans when their savings are exhausted and they get hit with an expense that feels urgent. Examples include:

  • Rent
  • Electricity
  • Water
  • School fees
  • Medical bills
  • Vet bills
  • Car repairs
  • Mortgage repayments
  • Funeral costs
  • Family holidays

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