How Do Payday Loan Apps Work?

If you’ve yet to find a payday advance app that suits your needs despite spending hours looking for the right one, it may be time to consider something else, like a loan at Fundo. 

Small personal loans from Fundo are a great alternative to payday advance apps thanks to our competitive interest rates and fees, flexible repayment terms, and ability to be used for a variety of purposes. 

Fundo is a reputable lender with a track record of helping customers meet their financial goals. Consider a small personal loan from Fundo for a more viable and responsible option.

How do payday loan apps work?

Payday loan apps in Australia allow users to borrow small amounts of money for a short period of time, usually until their next payday, hence their name. To use these apps, all you need is a smartphone, an internet connection, and a bank account. 

It's important to carefully consider your use of a payday advance app, shop around for the best terms and rates, and only borrow what you can afford to pay back. Understanding the loan terms before agreeing to anything is really important, which is why lenders like Fundo are the best way to go.

You can find the ease of use of payday loan apps in Fundo’s own application process, which is straightforward and 100% online. Simply visit our homepage, click on the ‘Apply Now’ button, and follow the instructions. If you qualify, we will send you an agreement and deposit the funds into your account as soon as possible. You will have up to 180 days to make your loan repayment; however, you can choose to repay your loan earlier.

Our online application form is available 24/7 and we offer approvals from Monday to Saturday. If you apply for and get your loan approved during our business hours, you’ll likely be able to enjoy our same-day loans. 

How much can I borrow from payday loan apps?

The amount of money that you can borrow from payday loan apps in Australia can vary depending on the lender and your financial situation.

Generally, payday loans are intended to be short-term emergency loans to help cover unexpected expenses. They are not intended to be used for long-term borrowing or as a substitute for traditional loans from banks or credit unions.

Fundo loan amounts range from $500 to $2000 with a one-time establishment fee and monthly fees. To be eligible for a loan from Fundo, you must:

• be at least eighteen years old;
• have regular employment income;
• show that you can meet repayment deadlines;
• be an Australian citizen or permanent resident; and
• be sure that borrowing from Fundo won't cause you undue financial stress.

At Fundo, we believe in taking an alternative route to credit scoring. That's why we've created our own credit scoring system called the Fundo Score. This system rewards you for paying your online loans early or on time, as well as for providing feedback and referring friends to Fundo. 

The higher your Fundo Score, the greater your chances of being approved for fast loans. In addition, we offer special discounts and benefits to customers with improved Fundo Scores.

What should I be mindful of about payday apps?

There are several things you should be mindful of if you are considering using a payday advance app in Australia.

First, it's important to carefully consider whether the use of a quick cash pay app is the right financial option for you. These short term loans can have high fees and interest rates, and they are not intended to be used for long-term borrowing or as a substitute for traditional loans from banks or credit unions. If you are considering borrowing from a payday advance app, it's a good idea to compare the terms and rates offered by different lenders and choose the one that best meets your needs.

Second, it's important to only borrow what you can afford to pay back. Payday loans must be repaid on or before the agreed-upon due date, and if you are unable to pay back the instant cash loan on time, you may be charged additional fees and interest. It's important to make sure you can afford to pay back the loan from the payday advance app before you agree to borrow any money.

Third, it's important to fully understand the terms and conditions of the loan before agreeing to anything. Make sure you understand the fees, interest rates, and repayment terms of the loan, and ask any questions you have before agreeing to the loan.

Finally, be aware that cash advance apps may not be regulated in the same way as lenders like Fundo. As responsible lenders, we adhere to all relevant Australian legislation, which means our terms and conditions clearly outline the costs associated with our loans. Should you have any questions regarding the costs of our small cash loans, we are more than happy to answer them. 

Go to Fundo for your short-term loan needs

At Fundo, we offer short-term and fast cash loans to approved applicants, even if they have less-than-perfect credit. Our repayment plans are flexible, and we have no hidden fees or charges.

As an Australian-owned and managed private lender, we aim to make the process of obtaining small loans simple and hassle-free. No jargon, no confusing legal language, just quick and easy online loans.

For any questions, feel free to reach out to our friendly customer service team through a call, email, or our online chat function.

Apply for a loan with Fundo today!

Payday Advance App FAQs

Do I really have until my next payday to pay back the loan?

No - for small loans ranging from $500 to $2,000, you have up to six months pay back the loan - and for medium sized loans of $2,000 to $5,000, you have up to two years to pay back the loan. It is actually against the law to set short (e.g. 14 day) payment terms for small loans in Australia. If anyone offers you an instant payday loan with short terms (under 90 days) you should report them to the authorities such as ASIC or the ACCC.

How long do I have to pay back the small loan?

You can set a repayment period as little as 91 days for a small instant cash loan, all the way up to six months; for a medium loan, you can choose from 91 day terms all the way up to two years. You can choose the loan term as part of your application, and we’ll include it in your loan agreement. Just remember that shorter loan terms means higher repayments and vice versa.

The repayments are smaller if I choose a longer term, is there a catch?

Not a catch - just an economic and financial reality. No matter what loan you choose, be it a mortgage, car loan, or even credit card (to an extent), the longer time you spread repayments over, the more interest you will have to pay. Interest is usually calculated per annum, the Latin word for “per year.” If you borrow $100 at 10% per annum and pay it back over a year, you will have to pay $10 in interest, making the total $110. 

This covers the risks of lending out money and the cost of money given to you right now, instead of saving up for it and waiting. (This is a very simple example, mind you! This doesn’t factor in fees and interest rate rises and falls, etc.) If you choose higher repayments and a shorter loan term, you will pay less in interest. The same goes with any kind of loan. It all depends on how much you can afford to pay each month without feeling any hardship. Sometimes, normal loan terms are best for borrowers - but beware taking out extended terms, as you will likely pay more in interest and fees.

Does Fundo check my credit for a small payday loan? My credit is bad.

Never fear; Fundo is here to help you get back on your feet with a small payday loan, even if your credit isn’t great. We can determine your eligibility for a loan without a formal credit enquiry (as it’s called in the biz) and figure out if you can pay back an instant cash loan using our own fundo score system. We will only check your credit with your consent, which is industry best practice.

How do I know my bank account is “NPP Enabled?”

NPP or New Payments Platform is also known as PayID or Osko and facilitates instant cash transfers between banks instead of waiting the usual 3-5 business days. If you have a PayID (usually your mobile phone or email address) then you are good to go. If you do not have PayID enabled, it’s best you contact your bank for more information.

How do I apply for a payday advance loan?

You can apply by clicking or tapping here or Apply Now anywhere on the page. This will take you to the Fundo online dashboard, where we will ask you some questions to figure out if you’re eligible for a small cash loan. If you’re approved, you can have the cash into your account within 60 seconds! It really is that easy with Fundo.

Disclaimer: Unless otherwise specified, the opinions expressed in this article are strictly for general informational and entertainment purposes only and should not be taken as financial advice or recommendation. Any commentary views are subject to change without notice at any time.