Micro Loans In Australia: What They Are And Where To Get Micro Loans

Micro loans are small, short-term credit products designed for a one-off expense you can repay on schedule. In Australia, “micro loans” commonly refers to regulated short-term credit such as Small Amount Credit Contracts (SACC) and sometimes Medium Amount Credit Contracts (MACC), depending on the amount you need. If you’re considering micro loans, it helps to understand how they work, what they cost, and where to get micro loans safely. Fundo offers regulated short-term credit products, and loans are subject to credit assessment, eligibility criteria, and approval.

Key takeaways

What is it?
A “micro loan” is a small loan amount, usually repaid over weeks or months. In Australia it often refers to products that may fall under SACC ($500–$2,000) and sometimes MACC ($2,001–$5,000), depending on the lender and product.

Is it available in Australia?
Yes. Micro loans are available through a range of lenders, and some not-for-profit programs may offer alternatives depending on your circumstances.

Who is it suitable for?
Suitable for people with a one-off expense who can comfortably meet repayments on schedule without experiencing financial hardship.

What are the risks?
Short-term loans can carry high costs, and missed payments may negatively affect your credit profile.

What does Fundo offer?
Fundo offers regulated short-term credit products including SACC and MACC (amounts and terms vary). Loans are subject to credit assessment, eligibility criteria, and approval.

What are micro loans in Australia?

Micro loans generally mean smaller loan amounts that are repaid over a shorter period than a traditional bank loan. Because the term “micro loans” is used in different ways, it’s helpful to map it to the regulated categories many Australians come across:

1. Small Amount Credit Contract (SACC)

• Amount: $500-$2,000
• Term: 4-39 weeks
• Cost structure: There is no interest on SACC loans, but fees do apply (an establishment fee of up to 20% of the loan amount, plus a monthly fee of up to 4% of the loan amount).

1. Medium Amount Credit Contract (MACC)

• Amount: $2,001-$5,000
• Term: 9-39 weeks
• Cost structure: For MACC loans, interest applies in addition to an establishment fee.

Different lenders offer different minimum and maximum loan amounts. So if you’re searching for micro loans, it’s worth checking whether you’re actually looking for a SACC, a MACC, or a different type of small credit product.

How do micro loans work?

While details vary by lender, micro loans in Australia often follow a similar process:

1. You apply and share your details
   Completing and submitting an online application will require you to provide information about your income, employment, financial commitments and regular expenses.
2. Verification and checks
   You’ll need to complete verification and credit assessment checks. Many lenders (including Fundo) will require digital access to your bank statements for assessment, and additional documents may be requested electronically.
3. Suitability and affordability assessment
   Fundo conducts inquiries and assessments to ensure loans are suitable for customers, based on their recent financial history.
4. Contract and repayment schedule
   If your application is approved, you will be provided with a loan contract detailing key information, including the repayment amount, payment schedule, and any applicable fees. Repayment frequency options may be available (weekly, fortnightly, monthly). Repayments are set under the loan contract and must be made as scheduled.

Where to get micro loans in Australia

When you’re searching “where to get micro loans”, it helps to start with safe, transparent options and compare total costs and suitability. Common places to explore include:

Licensed short-term lenders (online)
Many licensed lenders offer online applications for micro loans, including products that fall under SACC and MACC rules. You can usually review eligibility requirements, fees, terms, and what documents you’ll need before applying.

Not-for-profit and community lending options
Depending on your situation, you may be eligible for programs offered through community organisations. These can be worth exploring if you want to compare alternatives.

Your bank or credit union
Some banks and credit unions offer small loans or overdraft-style products, often with different eligibility requirements and timeframes.

Before you choose any option, check the total repayable amount, the repayment schedule, and whether the lender is transparent about fees and key terms.

Micro loans with Fundo: what’s available?

Fundo offers regulated short-term credit products that may suit a one-off expense, as long as you can comfortably meet repayments without missing essentials. Loans are subject to credit assessment, eligibility criteria, and approval.

Fundo - Small Amount Credit Contract (SACC)

• Amount: $500-$2,000
• Term: 4-39 weeks
• Fees: 20% establishment fee plus 4% monthly fee. There is no interest on SACC loans, but fees do apply.

Fundo - Medium Amount Credit Contract (MACC)

• Amount: $2,001-$5,000
• Term: 9-39 weeks
• Costs: An establishment fee may apply and interest charges may apply.

If your sole income is from Centrelink and you are seeking a smaller amount, the maximum loan amount that Fundo could offer is $500, subject to credit assessment.

Eligibility and requirements for micro loans

Eligibility varies by lender, but if you’re considering micro loans with Fundo, these are the typical requirements:

• You’re at least 18 years old.
• You need to have an active Australian bank account in the applicant’s name.
• You have a regular income that meets minimum thresholds (at Fundo, the minimum income is $1,000 per fortnight and government benefits may be included).
• You can demonstrate the ability to meet repayments without substantial hardship.
• You’re able to provide digital access to your bank statements for assessment (additional documentation may be requested).
• Verification and credit assessment checks are required.

Understanding costs: what you should look at

When comparing micro loans, try to look beyond the weekly or fortnightly repayment and focus on the total cost and whether the schedule fits your budget.

For SACC micro loans ($500-$2,000)

• There is no interest, but fees apply (establishment fee plus monthly fee).
• The loan contract should clearly show your total fees and total repayable amount.

For MACC micro loans ($2,001-$5,000)

• An establishment fee applies and interest charges apply.
• The contract should show the total repayable across the term, including interest and fees.

A good self-check is to ask: “If I make every repayment on time, will I still be able to cover my essentials and not rely on further borrowing?”

When a micro loan may be suitable (and when it’s not)

Micro loans may be suitable if:

• You have a one-off expense and a clear plan to repay on time.
• You’ve checked your budget and you can meet repayments without missing essential living expenses.
• You understand the total cost and you’re comfortable with it.

Micro loans are not suitable if:

• You need it to cover everyday living costs (like groceries and ongoing essentials).
• Repayments would cause you to fall behind and lead to substantial hardship.

Prohibited uses (personal, discretionary use only)
Loans are for personal, discretionary use only; prohibited uses include utility bills, rent, council rates, and repaying existing debts.

Alternatives to consider before micro loans

If you’re weighing up micro loans, it can help to consider lower-cost or non-borrowing options first, such as:

• Adjusting the timing of a non-essential purchase.
• Requesting a payment plan directly with a service provider (where available).
• Using a community support program if you’re eligible.

Even if you still decide a micro loan is the right fit, comparing alternatives can help you borrow less and repay more comfortably.

How to choose a micro loan provider

If you’re deciding where to get micro loans, here are practical checks that can protect you from unpleasant surprises:

• Clear costs upfront: Are fees, interest (if any), and total repayable shown before you accept the contract?
• Repayment schedule: Do the dates line up with when you’re paid?
• Assessment process: A legitimate lender will ask about income and expenses and will run checks. No loan is guaranteed, and licensed lenders do not offer true “no credit check” loans. All loans are subject to credit assessment, eligibility criteria, and lender approval.
• Support: Can you contact the provider if you have questions? With Fundo, you could apply online at any time that is convenient for you. For support, contact us on 1300 161 391 during business hours.

Frequently asked questions about micro loans

Are micro loans the same as payday loans?

Sometimes. In Australia, people often use “micro loans” and “payday loans” to describe small, short-term borrowing. Many payday-style loans fall under the SACC category ($500-$2,000), while slightly larger amounts may fall under MACC ($2,001-$5,000).

Where to get micro loans if I only need a small amount?

Options can include licensed short-term lenders, community programs (if you’re eligible), or your bank or credit union. If you only need up to $2,000, you may be looking at a SACC-style micro loan.

Can I apply for micro loans online?

Yes, many providers accept online applications. You’ll usually need to provide details about your income and expenses, complete verification, and provide digital access to bank statements for assessment.

What if I’ve had past credit issues?

Some lenders may review your credit history as part of their assessment. Past credit issues may affect approval and terms. The key is whether the loan is affordable for you now and whether you can meet repayments without substantial hardship.

How much can I borrow with Fundo micro loans?

Fundo offers SACC loans from $500-$2,000 and MACC loans from $2,001-$5,000, subject to credit assessment, eligibility criteria, and approval. If your sole income is from Centrelink, the maximum loan you can be approved for under a SACC loan is $500, subject to credit assessment.

What documents do I need for a micro loan?

Requirements vary, but it’s common to need identity verification and digital access to your bank statements. Additional documents may also be requested electronically.

Micro loans in Australia: a practical next step

Micro loans can help cover a one-off expense when you’ve checked the numbers and you’re confident you can repay on schedule. If you’re still deciding where to get micro loans, compare total costs, read the contract carefully, and only borrow what you genuinely need. If you want to explore regulated short-term credit products with Fundo, you can apply online at a time that suits you. Loans are subject to credit assessment, eligibility criteria, and approval.

Important Information

Credit provided by Fundo Loans Pty Ltd (ACN 604 639 143) Australian Credit Licence 491418. Loans are subject to credit assessment, eligibility criteria, and approval. Short-term loans can be expensive and may not be suitable for everyone. Borrow only what you need and can afford to repay. Missing repayments may negatively affect your credit profile and ability to meet essential expenses.