What are instant-approval loans?

When unexpected bills or last-minute expenses come your way, you may need extra money in a hurry to cover the costs. Instant-approval loans provide borrowers with access to small amounts of money, usually up to $2,000. Instant-approval loan amounts are generally lower than other types of personal loans and must be paid back within a shorter term of up to one year.

Instant-approval loans may suit borrowers who need money instantly, but they generally have higher fees. Borrowers looking for instant-approval loans should always compare their options to make sure they’re getting a good deal.

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12.69%

Fixed

13.56%

NAB

$1006

36 months

1 year to 7 years

2.98

/ 5
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10.50%

Fixed

11.38%

ANZ

$975

36 months

1 year to 7 years

3.24

/ 5
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12.69%

Variable

13.56%

NAB

$1006

36 months

1 year to 7 years

3.06

/ 5
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12.99%

Variable

13.86%

ANZ

$1011

36 months

1 year to 7 years

3.01

/ 5
More details

Learn more about personal loans

What are instant-approval loans?

When unexpected bills or last-minute expenses come your way, you may need extra money in a hurry to cover the costs. Instant-approval loans provide borrowers with access to small amounts of money, usually up to $2,000. Instant-approval loan amounts are generally lower than other types of personal loans and must be paid back within a shorter term of up to one year.

Instant-approval loans may suit borrowers who need money instantly, but they generally have higher fees. Borrowers looking for instant-approval loans should always compare their options to make sure they’re getting a good deal.

Who offers instant-approval loans?

Otherwise known as ‘payday loans’ or ‘cash loans’, instant-approval loans are offered by a range of traditional lenders like banks and credit unions, and non-traditional online lenders and peer-to-peer lenders. As instant-approval loans vary between lenders, it always pays to do your research and make sure you’re applying for an instant-approval loan from a trustworthy lender.

How do you take out instant-approval loans?

Taking out an instant-approval loan is usually a quick process which can give you funds almost instantly. As eligibility criteria vary between lenders, borrowers looking to take out instant-approval loans should always start by comparing their options.

Once you’ve used a comparison website like RateCity and you’ve weighed up the pros and cons of instant-approval loans, you can click through to the lender’s website and apply to take out the instant-approval loan online. When taking out an instant-approval loan, you will need to be at least 18 years old, provide proof of Australian citizenship and prove that you can afford to repay the loan.

Can people with bad credit take out instant-approval loans?

Eligibility criteria tend to vary from lender to lender, but as a general rule of thumb, people with bad credit may still be able to take out an instant-approval loan. While each borrower sets their own rules, some instant-approval loans let you apply for up to $2,000 without a credit check.

Credit-impaired borrowers should always exercise caution when applying for loan products and be sure they are not taking on debt they cannot afford to repay.

 

How do you compare instant-approval loans?

With so many instant-approval loans on the market, comparing your options can be challenging. When comparing instant-approval loans, look out for fees and charges, specifically any default charges. Most instant-approval loans have an establishment fee, which may vary depending on the amount you borrow. Keep an eye out for instant-approval loans which offer repayment flexibility as you may wish to coordinate your loan repayments with your pay cycle.

What are the pros and cons of instant-approval loans?

The most obvious advantage of an instant-approval loan is fast access to additional funds, which might be a cheaper option to other sources of credit like a credit card. Applying for instant-approval loans is usually a simple process which involves filling in an online application.

When it comes to fees and charges, instant-approval loans tend to have higher fees than other types of loans and credit. The other potential drawbacks are shorter repayment periods and smaller loan amounts. Instant-approval loans are usually capped at $2,000, which may not be suitable for all borrowers.

Before taking out an instant-approval loan, borrowers should always compare their options and make sure they’re taking out a loan that suits their lifestyle, needs and budget.

Frequently asked questions

Can I get a fast loan with bad credit?

Some lenders offer fast loans to borrowers with bad credit. Providers of small payday loans of up to $2000 or medium amount loans of up to $5000 may have no credit checks, though these lenders will usually want to confirm you can afford its loans on your income.

Are there emergency loans with no credit checks?

While many personal loans require a credit check as part of the application process, some personal loans and payday loans have no credit checks, which may appeal to some borrowers with a bad credit score.

Keep in mind that even if a loan is available with no credit check, the lender will likely want to confirm that you can afford the repayments on your current income.

Do $4000 loans have no credit checks?

Many medium amount loans for $4000 have no credit checks and are instead assessed based on your current ability to repay the loan, rather than by looking at your credit history. While these loans can appear attractive to bad credit borrowers, it’s important to remember that they often have high fees and can be costlier than other options.

Personal loans for $4000 are more likely to have longer loan terms and will require a credit check as part of the application process. Bad credit borrowers may see their $4000 loan applications declined or have to pay higher interest rates than good credit borrowers.

How long does it take to get a $5000 loan?

Depending on the lender, personal loans and medium-amount loans for $5000 can sometimes be approved in under an hour, and give you access to the money the same day. Other loans may take 24 hours or longer to assess your application, and you may not get the money for a few days.

How can I get a $3000 loan approved?

Responsible lenders don’t have guaranteed approval for personal loans and medium amount loans, as the lender will want to check that you can afford the loan repayments on your current income without ending up in financial hardship.

Having a good credit score can increase the likelihood of your personal loan application being approved. Bad credit borrowers who opt for a medium amount loan with no credit checks may need to prove they can afford the repayments on their current income. Centrelink payments may not count, so you should check with the lender prior to making an application.

Can I get guaranteed approval for a bad credit personal loan?

Few, if any, lenders would be willing to give guaranteed approval for a bad credit personal loan. Borrowers with bad credit histories can have more complicated financial circumstances than other borrowers, so lenders will want time to study your application. 

It’s all about risk. When someone applies for a personal loan, the lender evaluates how likely that borrower would be to repay the money. Lenders are more willing to give personal loans to borrowers with good credit than bad credit because there’s a higher likelihood that the personal loan will be repaid. 

So a borrower with good credit is more likely to have a loan approved and to be approved faster, while a borrower with bad credit is less likely to have a loan approved and, if they are approved, may be approved slower.

How much can you borrow with a bad credit personal loan?

Borrowers who take out bad credit personal loans don’t just pay higher interest rates than on regular personal loans, they also get loaned less money. Each lender has its own policies and loan limits, but you’ll find it hard to get approved for a bad credit personal loan above $50,000.

Can I get an easy/instant personal loan?

Some lenders are able to approve applications with little documentation and within minutes. However, there is a catch. People who take out easy/instant loans generally pay higher interest rates and are restricted to lower amounts than people who follow a traditional borrowing process.

What are the pros and cons of bad credit personal loans?

In some instances, bad credit personal loans can help people with bad credit history to consolidate their debts, which can help make it easier for them to clear those debts. This is because the borrower might be able to consolidate several debts with higher interest rates (such as credit card loans) into one single debt with a lower interest rate and potentially fewer fees.

However, this strategy can backfire if the borrower spends the loaned funds instead of using it to repay the new loan. Another disadvantage of bad credit personal loans is that they have higher interest rates than regular personal loans.

Do student personal loans require security?

While some personal loans can be secured by the value of an asset, such as a car or equity in a property, student personal loans are often unsecured, which typically have higher interest rates.

Some lenders also offer guarantor personal loans to students. These loans have lower interest rates, as a guarantor (usually a relative of the borrower with good credit) will fully or partially guarantee the loan, taking on the financial responsibility if the borrower defaults.

Can I apply for a quick loan online?

While some lenders will require you to provide paperwork in person, many lenders will allow you to make an application for quick personal loan online. You’ll still need to provide information on your identity, income, and loan purpose in most cases.

What do credit scores have to do with personal loan interest rates?

There is a strong link between credit scores and personal loan interest rates because many lenders use credit scores to help decide what interest rates to offer to potential borrowers.

If you have a higher credit score, lenders will probably classify you as a lower-risk borrower. That means they’ll be keen to win your business, so they may offer you a lower interest rate if you apply for a personal loan.

If you have a lower credit score, lenders will probably classify you as a higher-risk borrower. That means they might be concerned about you defaulting on the loan and costing them money. As a result, they might protect themselves by charging you a higher interest rate.

Are there low doc personal loans?

Self-employed borrowers may be eligible for low doc personal loans, which require less documentation in their application process than many other personal loan options.

It’s important to remember that though low doc personal loans may require less paperwork, you may need to provide additional security, or pay a higher interest rate.

Can unemployed single parents get personal loans?

It can be more difficult for unemployed borrowers to successfully apply for a personal loan. Most lenders require borrowers to have a regular income available to cover the cost of loan repayments.

If you’re self-employed, or if less than half of your income comes from Centrelink, you may not be eligible for some personal loan options. Consider contacting the lender before applying.

Can you pay off a quick loan early?

Many lenders will allow you to make extra repayments onto a quick personal loan when you can afford them, or even exit the loan early, which can help reduce the total interest you are charged. Be sure to check your quick loan’s terms and conditions, as some lenders charge early exit fees for paying off a loan ahead of schedule.

Can you refinance a $5000 personal loan?

Much like home loans, many personal loans can be refinanced. This is where you replace your current personal loan with another personal loan, often from another lender and at a lower interest rate. Switching personal loans may let you enjoy more affordable repayments, or useful features and benefits.

If you have a $5000 personal loan as well as other debts, you may be able to use a debt consolidations personal loan to combine these debts into one, potentially saving you money and simplifying your repayments.

What do I need to get a fast loan?

Most lenders will need to you provide the following information in your application for a fast loan:

  • Proof of identity
  • Proof of residence
  • Proof of income
  • Details of any assets you own (e.g. car, home etc.)
  • Details of any liabilities you owe (other personal loans, credit cards, mortgages etc.)
  • How much you want to borrow
  • Over how long you want to pay it back
  • Purpose of your loan

Are there any interest-free emergency loans?

The No Interest Loans Scheme (NILS) allows low-income borrowers to take out no-interest loans for up to $1500 to purchase essential goods and services.

There are also similar low-interest loan schemes available to borrowers in financial hardship who are having a tough time getting finance approved.

Are there alternatives to $2000 loans?

If you need to borrow $2000 or less, alternatives to getting a personal loan or payday loan include using a credit card or the redraw facility of your home, car or personal loan.

Before you borrow $2000 on a credit card, remember that interest will continue being charged on what you owe until you clear your credit card balance. To minimise your interest, consider prioritising paying off your credit card.

Before you draw down $2000 in extra repayments from your home, car or personal loan using a redraw facility, note that fees and charges may apply, and drawing money from your loan may mean your loan will take longer to repay, costing you more in total interest.

Can I get a self-employed personal loan with bad credit?

It may be much more difficult for a self-employed borrower to successfully apply for a personal loan if they also have bad credit. Many lenders already consider self-employed borrowers to be riskier than those in full-time employment, so some self-employed personal loans require borrowers to have excellent credit.

If you’re a self-employed borrower with a bad credit history, there may still be personal loan options available to you, such as securing your personal loan against a vehicle of equity in a property, though your interest rates may be higher than those of other borrowers. Consider contacting a lender before applying to discuss your options.