One way you can separate and define loans is that they essentially come in two different forms, what’s known as secured and unsecured loans. Secured loans are when the client nominates a form of security, sometimes referred to as collateral, against the loan amount. It has to be some item that’s value can be established, and one of the exit strategies for the loan can be that if it is not paid back, this item is sold, and all or part of the money from the sale pays back the loan. This type of loan understandably can make loan customers nervous, in that they feel they can lose their possessions.
Unsecured loans are when no item owned by the customer taking out the loan is put up security.
For your comfort and peace of mind Cash Australia only offers unsecured loans.
We are able to do this for a two important reasons. Firstly we only loan amounts from between $300 to $5000, so we are not loaning one person a million dollars unsecured, this means we can spread our risk level across a large number of customers. Secondly we do check thoroughly that any loan amount we approve is within the customers scope to be repaid in the timeframe required. That is, they have regular income, and that at least 50% of that income is from an employer. And for clients that are applying for a loan—that receive 100% of their income from benefits—the loan repayments will be no greater than 20% of their regular benefit income.
With these measures in place Cash Australia is able to lend responsibly to clients without having to request security, which we think is a benefit to all. You as a customer are not nervous or intimidated in thinking about applying for a loan with us, and we as a company can confidently offer this service.
So, what types of loans do we offer?
Effectively two different structures.
We have what’s known as a Medium Amount Credit Contract (MACC). This allows us to lend you from between $2001 to $5000 dollars unsecured. The establishment fee is a flat rate of $400 regardless of the loan amount, and the monthly loan fee is 4% of the amount borrowed. Yes you’re right, that monthly interest rate is a lot lower than some of the extortionate “standard” interest rates you might have been paying on overdue credit card balances you’ve had! And this is of course one of the reasons our loans are so popular.
The documents we need to check to approve this type of loan are: the last 90 days of your bank account transition history, (the one your income goes into). The simplest and most secure way to send this is through our online service at http://bankstatements.com.au which collects your statement directly from your internet banking and sends it to us at Cash Australia.
We also need your driver’s license (if you have one), and your Medicare card number. Plus your last two payslips, or an income statement if you are receiving a Centrelink benefit.
Conversely, we also offer Small Amount Credit Contracts (SACC). This structure allows you to borrow from $300 to $2000 unsecured. The establishment fee is 20% of the loan amount, and the monthly loan fee is again only 4%.
Documents you’ll need to upload to complete an application for this one are exactly the same as our MACC loan.
To be eligible for either of our loan structures you do have to:
- Be over 18 years of age
- Hold Australian residency
- Have regular income, (with more than 50% coming from employment)
- Get paid by your employer directly into your bank account
- Not be classed as a bankrupt or be currently under a Part IX Debt Agreement
But as mentioned earlier, don’t be disheartened if your income is derived 100% from a government benefit. We can still lend to you as long as your repayments will not constitute more than 20% of your regular income.
And of course, each loan application we receive is judged by our team 100% on its merits.
Cash Australia is a wholly Aussie owned company and is an Australian Credit License Holder (Australian Credit License Number 386209. Fill our online application or call us to day on (08) 8281 9383 to get the ball rolling!