Nick BendelNick BendelJun 26, 2018(1 min read)

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.

Related FAQ's

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.

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.

How do I get a $500 payday loan?

The most common way to get a $500 payday loan is over the internet, although some lenders also take in-store applications. The application process may take as little as five minutes and, in some cases, your loan may be assessed and approved within the hour.

When you apply for a $500 payday loan, you will probably have to provide:

  • Name and address
  • Proof of identification
  • Income
  • Employment details

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

Where can I get a $1,000 payday loan?

Australia has several dozen lenders that offer $1,000 payday loans. These payday loan providers tend to be smaller, lesser-known non-bank lenders rather than well-known big banks. Generally, they’re online-only businesses, which means you’d have to apply for your $1,000 payday loan over the internet. However, there are some payday lenders that also allow in-store applications.

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.

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)