How Small Cash Loans May Help With Unexpected Expenses

Unexpected costs can arise at any time. Some people consider short-term credit to help manage a one-off expense when they do not have immediate savings available.

Small cash loans are designed for short-term use. They are not suitable for ongoing financial difficulty or covering regular living expenses.

At Fundo, we provide:

• Small Amount Credit Contracts (SACC) from $500 to $2,000
• Medium Amount Credit Contracts (MACC) from $2,001 to $5,000

Short-term loans can be expensive and may not be suitable for everyone. Borrow only what you need and can afford to repay.

Loans are subject to credit assessment, eligibility criteria, and approval.

What we mean by small cash loans

Small cash loans are regulated credit products that provide a lump sum paid to your bank account, repaid in scheduled instalments over a set term.

In Australia, these products are commonly regulated as:

Small Amount Credit Contracts (SACC)

• Loan amounts: $500 to $2,000
• Loan terms: 4 to 39 weeks
• Cost structure: establishment fee plus monthly fee
• Interest: SACCs do not charge interest

Medium Amount Credit Contracts (MACC)

• Loan amounts: $2,001 to $5,000
• Loan terms: 9 to 39weeks
• Cost structure: establishment fee plus interest charges

Both SACCs and MACCs are unsecured, which means you do not need to provide an asset such as a car or property as security.

When people consider a small cash loan

A small cash loan may be considered for unexpected, one-off costs, such as:

• Essential car repairs needed to get to work
• Replacement of a broken essential appliance
• Urgent travel costs for a necessary trip
• Medical or dental expenses
• Other legitimate personal expenses

A short-term loan may not be appropriate if the underlying issue is that income is not covering regular expenses. In those situations, borrowing can increase pressure by adding another repayment to an already tight budget.

How assessment works at Fundo

All licensed lenders must assess suitability before approving a loan. There is no such thing as guaranteed approval or an instant loan without assessment.

When you apply, we assess whether the loan is suitable and affordable based on your circumstances, including:

• Your income from all sources
• Your regular expenses
• Existing financial commitments such as other loans, credit cards, or buy now pay later accounts
• Recent banking activity to confirm actual income and spending patterns
• Whether repayments are manageable without causing financial hardship

If the assessment indicates a loan may cause financial hardship or make it difficult to meet existing obligations, we are required to decline the application

Decisions and funding timeframes

You can submit an application online at any time.

Our decisions are often made the same day for complete applications, but they are not instant or automatic.

Processing times depend on factors like:

• Whether all required information is provided
• Verification requirements
• Time of day
• Whether it is a weekend or public holiday
• Your bank’s processing systems

If approved and you accept the contract, funds are transferred to your nominated bank account as soon as reasonably possible. Transfer timing varies depending on bank processing and verification completion.

Eligibility requirements

To apply, you generally need to:

• Be at least 18 years old
• Be living in Australia
• Receive regular income of at least $1,000 per fortnight (government benefits may be included)
• Have an active Australian bank account in your name
• Demonstrate ability to meet repayments without hardship

If Centrelink is your sole income source, the maximum amount we may approve is $500, subject to assessment.

Meeting these criteria does not guarantee approval. Each application is assessed individually.

What you may need to provide

To meet responsible lending obligations, you may be asked to provide or verify:

• Proof of identity
• Income verification such as payslips, Centrelink statements, or bank statements showing regular deposits
• Recent bank statements, often covering recent months
• Details of regular expenses and financial commitments

Providing complete information helps prevent delays in assessment, but it does not guarantee approval.

Understanding costs and repayments

Short-term loans compress repayments into a shorter period, which can make each repayment higher than people expect.

Repayments are set out in the contract and must be made as scheduled.

Repayment frequency options may be available depending on your circumstances, for example:

• Weekly repayments if you are paid weekly
• Fortnightly repayments if you are paid fortnightly

This does not mean repayments are flexible or customisable outside the contract. It means the repayment frequency may align with your pay cycle when available.

Worked example for SACC

Example only: $1,000 borrowed over 20 weeks

• Loan amount: $1,000
• Establishment fee: $200
• Monthly fees: $200
• Total to repay: $1,400
• Weekly repayment: $70

SACC loans do not charge interest. Fees are capped and disclosed in the contract.

Worked example for MACC

Example only: $2,500 borrowed over 6 months

• Loan amount: $2,500
• Establishment fee: $400
• Interest charged over 6 months: $389
• Total to repay: $3,289
• Fortnightly repayment: $253

MACC loans may include interest in addition to an establishment fee. The applicable interest rate, fees, and total cost will be clearly disclosed in your contract before you decide whether to proceed.

These examples are illustrative only. Actual costs depend on the loan amount, term, fees, interest rate, and whether repayments are made on time.

When a small cash loan may not be suitable

A small cash loan is generally not suitable for:

• Regular living expenses such as groceries, ongoing transport, or day-to-day bills
• Debt consolidation or paying off other loans
• Ongoing financial difficulty that needs a longer-term solution
• Situations where you are already behind on repayments or struggling to meet essentials

If you are already finding repayments difficult, adding another repayment can increase pressure and make the situation harder.

Alternatives to consider first

Before applying for credit, you may wish to explore:

• Payment plans with the service provider, retailer, or creditor
• Using available savings
• Free financial counselling
• Community support services depending on your situation

National Debt Helpline: 1800 007 007
Free, confidential, independent support.

FAQs

How fast can I get a decision?

Once we have all required information and verification is complete, we aim to provide decisions within one business day. Timing varies depending on verification requirements and when you apply.

How quickly will I receive funds if approved?

After approval and contract acceptance, funds are transferred as soon as reasonably possible. Transfer timing depends on bank processing systems and verification completion. There is no guaranteed instant funding.

Can I change my repayment schedule?

Repayments are set under the contract and must be made as scheduled. Repayment frequency options may be available depending on your circumstances. If your situation changes, contact us as early as possible.

Can I repay early?

Yes. You can repay your loan early. Depending on the loan terms, this may reduce the total cost.

Important information

The information on this page is general in nature and does not take into account your personal objectives, financial situation or needs. It is not financial advice.

Terms, conditions, fees, and eligibility criteria apply and may change over time.