What Is A Personal Loan?
A personal loan is generally for funds that can be used for a range of different reasons. In other words, they are not for the purchase of a specific item such as a mortgage for a home or a vehicle finance for the purchase of a car. Even though a lender may request a reason for the loan, this will most often not have any effect on whether the loan is approved or not.
A personal loan can therefore be taken out for emergencies such as paying for car repairs or a vet bill. The loan can be used to pay for a wedding or other event. It can even be used to simply make ends meet at the end of a difficult month or to consolidate other debt.
How Much Can You Borrow With A Personal Loan?
Personal loans from Cash Smart are normally in smaller amounts and can range anywhere from $300 to $2000. They are not aimed at buying large assets such as a house or a car. The loan amount that is approved may depend on a range of factors:
- – How much you earn
- – Your expenses
- – How much you can afford to repay
Some lenders will take into account your credit history in determining the loan amount. A bad credit record may mean that a lower loan amount may be granted in order to ensure that the repayments are affordable.
However, at the end of day, it is your responsibility to ensure hat you can afford to repay the loan according to the instalment schedule. It is recommended to draw up a budget to calculate how much you have available to pay towards a loan. It is also highly advisable to only take out a loan in the amount that you need.
What Is The Term Of A Personal Loan?
The term of a loan (https://en.wikipedia.org/wiki/Term_loan) refers to how long you have to repay the loan in full or the repayment period. Personal loans from Cash Smart are short term and can have a repayment period anywhere from 4 weeks to 24 weeks (1 month to 6 months). Repayments can be scheduled to be made on a weekly or a monthly basis depending on when you get paid a salary or your wages.
One of the greatest benefits of a personal loan is the flexibility of the term. You can choose a repayment period that suits your needs. However, it is important to note that the longer the term you choose, the more you will need to pay on additional fees and charges. It is therefore recommended to repay a personal loan as quickly as possible.
Can I Repay A Personal Loan Faster?
In general, personal loans can be settled earlier than the prescribed term or repayment period of the loan. This is a good way to avoid the ongoing charges associated with the loan. However, it is important to be aware that many lenders charge early settlement penalties. In most cases, this charge will be the same as the money you will be saving in ongoing charges. Some lender’s early settlement fees are however in excess of this meaning that it will cost more to pay your loan off earlier.
Cash Smart does not charge any early settlement fees. If you want to settle your debt in one lump sum instead of continuing to pay every week or month, simply contact us to make the necessary arrangements.
What Fees Are Associated With A Personal Loan?
Most lenders charge interest on the principal loan amount. The principal loan amount is the amount that was approved for the loan and that you received from the lender. The interest is calculated as a percentage of the principle loan amount over the term or repayment period of the loan. Interest is added to the monthly repayment or instalment and needs to be paid together with the loan amount. Cash Smart does NOT charge any interest on loans.
Lenders may also charge additional fees such as an activation fee, administration fee, service fee and so on. It is very important to pay attention to these charges as they will increase the total cost of the loan as well the monthly repayments. The charges must be included in the calculation to ensure that you will be able to afford the monthly or weekly repayments.
Cash Smart charges a once-off Loan Establishment Fee which is calculated as 20% of the loan amount. This amount is then divided by the term of the loan and then added to the monthly repayment so that you don’t have to be concerned with repaying the fee upfront.
There is also a small monthly fee which is calculated at 4% of the loan amount. This monthly fee will also be added to your monthly repayment. You can use our quick loan calculator (https://www.cashsmart.net/borrow/repayment/) to find out exactly what your repayments will be including these charges so that you know just how much you can borrow.
What Do You Need To Apply For A Cash Smart Personal Loan?
Although Cash Smart does try to make the application as simple as possible, there is some vital information that we need in order to approve your loan. Before making application, it is important to ensure that you fulfill the following qualifying criteria:
- – You must be a resident in Australia
- – You must be over the age of 18 years
- – You must earn an income of at least $400 a week
- – You must have a bank account that has been in existence for at least 3 months
- – You must be able to prove that you can afford the repayments
In order to prove the above, we may need the following documents or evidence:
- – Proof of residence in the form of a bill or account that has your name and address printed on it
- – Copy of a valid driver’s licence or your passport
- – Payslips for at least 3 months. If you are self-employed or do not have payslips, you can submit 3 months bank statements to prove your income.
- – We will use your banking details to verify your income as well as make payment once your loan has been approved
- – As part of the application process, you will be required to fill in a short budget to prove that you have sufficient funds available from your earnings, after expenses, to make your repayments on time.
It should only take a few minutes of your time to complete the application form (https://www.cashsmart.net/applying/apply/).
Does Cash Smart Run A Credit Check?
Your credit history is used by lenders to determine what the risk is in providing a loan to you. They therefore run credit checks to evaluate whether you are a good or bad risk.
Similarly, Cash Smart will run a credit check (https://www.finder.com.au/equifax-score). However, if you have a bad credit record, this does not necessarily mean that we will not approve a loan. We offer loans for bad credit to those who often don’t have other options available to them when they need cash fast.
How Long Does Personal Loan Approval Take?
Cash Smart understands the urgency that often comes along with an application for a personal loan. We make an effort to process every application as quickly as possible and pay the loan amount into your back account as soon as the loan has been approved.
Once you have submitted your application form along with all the required documentation, it should take no more than a day for it to be processed. In most cases, we will let you know on the same day as you applied whether your loan has been approved. Upon approval, the approved loan amount will be paid directly into your bank account.
What Happens If I Can’t Pay An Instalment?
It is critical to contact us immediately if for any reason the funds available in your bank account will be insufficient to pay your loan instalment. We will then be able to change the date of the transaction in order to avoid bank charges associated with insufficient funds as well as our fee of $20 for insufficient funds.
If you have lost your job and your income for any reason, you should also contact us to make alternative arrangements for payment. We understand that job instability is on the rise and will take this into account in restructuring your loan to meet your new circumstances.
The Application Process
If you meet the qualifying criteria and want to apply for a short-term personal loan, simply visit https://www.cashsmart.net/applying/apply/ today and complete the application form.
If you need more information on our personal loan products, visit our FAQ page https://www.cashsmart.net/contact-us/faqs/.
If you have a question, visit https://www.cashsmart.net/contact-us/ask-a-question/ and one of our friendly staff members will get back to you as soon as possible.
If you prefer to give us a call, we are available on 1300 762 731 during normal working hours.
If a face-to-face meeting is preferable, visit https://www.cashsmart.net/contact-us/our-branches/ to find a Cash Smart branch near you.
No matter your reason for applying for a personal loan, our fast approval and payout time will ensure that you get money in your bank account when you need it most.