Low Interest Small Loans – Everything You Need to Know
Need a small loan but don’t want to pay exorbitant interest rates? With so many lenders claiming to have the solution, it can be difficult to know who or what to trust. While you may think it’ll save you in the long-term, at the end of the day, interest rates aren’t the only thing you should be looking at. Hidden fees and charges can get you where you least expect them to. So, while Jacaranda Finance does not provide ‘low interest small loans’ we can help you out with small, short-term finance when you’re in a financial pickle.
Best of all – we believe in transparency so you don’t have to worry about any costs sneaking up on you. Keep reading to learn more about low interest small loans and how we may be able to help you get the funding you need.
What are Low Interest Small Loans?
As the name suggests, low interest small loans carry a low level of interest and are only small in size. Typically, they are available as personal loans for periods of 16 days through to 12 months and can offer financing from anywhere between $300 to $5,000, depending on the lender. The small, short-term nature of these loans make them an optimal choice in times of emergency or unexpected events when many Australians need help covering smaller costs.
Interest is expressed as an annual percentage of the principal loan amount and is effectively the cost of taking out the loan. Consequently the lower the interest rate, the less you will have to repay.
To summarise, these are the key facts about low interest small loans worth noting:
- A personal loan from $300 to $5,000 with a low level of interest
- Can be provided to those with a good or bad credit history
- With some lenders, the process can be done 100% online
- Can be provided to people who are employed or those who receive Centrelink benefits
Things to Consider About Loans With Small Interest Rates
It may be tempting to focus solely on the interest rate when comparing your loan options, after all, it contributes to how much you will ultimately have to repay. Yet, if you’ve been searching for ‘small personal loan low interest’ or ‘small cash loans low interest’ you’ve probably noticed that a low interest rate is a great advertising promotion – but when you look at the fine print things are sometimes not as good as they seem. Consequently, here are some other aspects you should consider when looking for low interest small loans.
Type Of Loan
First up, think about what type of loan are you looking for – secured or unsecured? Many low interest small loans will be unsecured, meaning you do not need to attach an asset as security for the loan. Unsecured loans can mean your application is processed faster but attaching an asset, such as a car or boat, will generally allow you to borrow more and at a lower interest rate. The downside to this, however, is that the lender will be able to repossess your asset should you be unable to repay your loan. In deciding what type of loan you’re after you will, therefore, need to determine which of the two would be more beneficial to your individual financial situation.
Low interest small loans may come with additional features provided by the lender. For example, the lender may have a mobile app allowing you to easily manage your account or perhaps you can access additional funds through a redraw facility. Certain features may pose significant importance to you and you may subsequently find that these added benefits outweigh a lower interest rate. Ultimately, before you start looking you should think about what features you’re most looking for aside from low interest.
Flexibility on interest, loan amount or repayment period may be important to you and your situation. Many lenders offer this as part of their loan products and even take it a step further by allowing you to add to your original loan amount with additional loans. Again, it comes down to what you’re looking for but this is definitely something to consider before you start your search for low interest small loans.
No Interest Loan Scheme
If you have a low income, then it may be worth considering the No Interest Loan Scheme (NILS) instead of low interest small loans. An initiative was undertaken by providers in community centres and other local organisations across Australia, NILS allows access to safe, fair and affordable credit. Through the scheme, borrowers can apply for loans of up to $1,500 for essential goods and services with repayments set up over 12 to 18 months.
There are no interest charges or fees on these loans but, of course, you will need to meet certain eligibility criteria to qualify. For example, if you earn over $45,000 after tax each year, you will not be able to access NILS. However, there are other initiatives out there, so it’s worth having a look at ASIC’s website for more information on no interest loans.
How Could Jacaranda Finance Help?
Jacaranda Finance can provide affordable small loans to cover a variety of expenses you may be facing in the short-term. No matter what your situation, we could potentially provide you with the funding you need through our three types of loans: small, medium, and large. So, if you require more funding you could also apply for one of our other two loan products.
Each personal loan group has its own requirements and specifications designed to meet the needs of the loan size. The below table outlines everything you need to know regarding our different loan types:
|Small Personal Loans||Unsecured personal loans between $300 to $2,000 that can be repaid over a 12-month period.|
|Medium Personal Loans||Secured personal loans between $2,001 and $4,600 that can be repaid over 13 – 24 months.|
|Large Personal Loans||Secured personal loans between $5,000 to $10,000 that can be repaid over a 13 – 36 month period.|
Why Choose Jacaranda Finance?
With so many lenders out there, why should you choose Jacaranda Finance? Well, if you’re looking for affordable small loans to cover urgent expenses, Jacaranda could provide you with the funding to ease your financial stress. We won’t claim to provide low interest small loans because we believe in 100% transparency. Consequently, you can rely on us not to surprise you with any additional fees and instead help you find the perfect solution to meet your financial needs.
When we assess loan applications we adhere to responsible lending practices, so we won’t approve an applicant who we believe won’t be able to meet their repayments. This ensures our clients are appropriately matched to the right loan product. So, while that means we cannot guarantee same day approval, we can guarantee a fair assessment.
Who is Eligible?
To be eligible for a small personal loan with Jacaranda, you must be able to meet the following requirements:
- Are you an Australian citizen or permanent resident?
- Are you aged 18 or older?
- Have you received a regular income for the last 90 days into your own personal bank account?
- Do you have an active email address and mobile phone number?
If you can check of all of these points, then you can apply for a small personal loan today!
What You’ll Need to Apply
Eligibility is one thing, but for your application to be successful you will need to provide us with a few documents before we can conduct an assessment. These include:
- Personal details such as online banking and employment info;
- A reason for why you are applying for the loan;
- Your myGov details (if you are receiving Centrelink payments);
- Your employer’s contact details.
Does Jacaranda Conduct Credit Checks?
Yes, we do! We don’t offer small loans without credit checks. At Jacaranda, we conduct credit score checks on all loan applications as part of our responsible lending commitment. Concerned this will mean you won’t be approved for a loan? Don’t worry, our team does not base an entire assessment on the outcome of a credit check. Rather, we will take a broader look at other factors such as income and employment status to determine eligibility. As a result, bad credit does not have to prevent you from accessing finance with Jacaranda.
What to Know About Our Small Loans
|When will I receive my funds?||After you submit your application, we will conduct an assessment as soon as we can. If you are approved, you will receive a contract to sign. If you sign it after 5.30pm (AEST) Monday to Thursday, the funds will be distributed the next business day in our first round of banking.|
|How long do I have to pay it back?||You can have up to 12 months to repay your small loan, depending on your situation and loan request.|
|Where can I apply?||We only accept online applications. If you cannot submit the form, please contact us directly.|
How to Apply
While Jacaranda can’t provide low interest small loans, if you think you are ready to apply for one of our small personal loans online it’s simple to get started! Just follow these four easy steps:
Step 1: Submit Application
Scroll up and use our loan calculator to enter your preferred amount and repayment period. When you’re satisfied, hit the ‘apply now’ button and you will be directed to our full 100% online application form. This form could take you just a few minutes to complete, should you choose to proceed with your application.
Step 2: Application Assessment
Once you’ve submitted your application form simply sit back and relax as our team starts the assessment process. If you have submitted your application during regular AEST business hours, you could even have an outcome within as little as 60 minutes.
Step 3: Loan Contract
Should your application be approved, a member of our team will be in touch with a proposed loan contract for you to read and sign. We recommend you read through our agreement carefully and make yourself aware of any fees or charges you could incur for late or failed payment. When you’re happy, simply sign and send it back to us.
Step 4: Disbursement of Funds
As soon as we receive your signed loan agreement, our team will schedule the release of funds to your account. Please remember that inter-bank transfer times can affect the speed at which the cash hits your account and we cannot guarantee how long this process may take. However, we will do our best to get it to you on the same day.
Find Out More
Want to learn more about personal finance? Check out the Jacaranda Finance blog for a diverse selection of articles on finance and lifestyle, bound to both inform and educate.
Alternatively, if you’re looking for more information on low interest small loans, we are not financial advisors. ASIC’s MoneySmart website would be a better source for information on low interest loans. However, if you wish to know more about our small personal loans offering, check out our FAQ page, send us a message via our Enquiries form or call us direct on 1300 471 328 to learn more!
Small Personal Loan
Up to 20% Establishment Fee
+ monthly fee up to 4%
Jacaranda Finance does not charge an annual interest rate on SACC loans. These small amount loans incur 'fees' instead of interest. The maximum comparison rate on our loans between $300 and $2000 is 199.43%.WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate
Loan Amount of $1,000 over 6 months repayable weekly (25 weekly repayments). $1,000 (Principal Amount) + $200 (20% Establishment Fee) + $240 (fees based on 4% per month over 25 weeks) = $1,440 total repayable in 25 weekly installments of $57.60.
Loan Amount of $1,000 over 12 months repayable weekly (50 weekly repayments). $1,000 (Principal Amount) + $200 (20% Establishment Fee) + $480 (fees based on 4% per month over 50 weeks) = $1,680 total repayable in 50 weekly installments of $33.60.
Medium Personal Loan
Annual Percentage Rate (APR) starts at 20.56%
Comparison Rate is 20.56% per annum.
This comparison rate is based on a medium amount credit contract of $2,500 repaid over 2 years with a $400 establishment fee and APR of 20.56%.WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate
Loan Amount of $3,000 over 18 months repayable weekly (78 weekly repayments). $3,000 (Principle Amount) + $400 (Establishment Fee) + $555.83 (reducing interest*) = $3955.83 total repayable over 18 months with weekly installments of $50.71.
Loan Amount of $4,500 over 24 months repayable weekly (104 weekly repayments). $4,500 (Principle Amount) + $400 (Establishment Fee) + $1081.85 (reducing interest*) = $5981.85 total repayable over 24 months with weekly installments of $57.51
Large Personal Loan
Annual Percentage Rate (APR) is 12%
Comparison rate is 19.88% per annum.
Loan Amount of $5,000 over 18 months repayable weekly (78 weekly repayments). $5,000 (Principle Amount) + $1831.16 (Interest) = $6831.16 total repayable over 18 months with weekly installments of $87.57.
Loan Amount of $10,000 over 24 months repayable weekly (104 weekly repayments). $10,000 (Principle Amount) + $5041.72 (Interest) = $15041.72 total repayable over 24 months with weekly installments of $144.63.