The best short-term loans in Australia are always in demand. Short-term loans are usually small to medium-sized amounts borrowed for unexpected minor expenses. They also involve shorter repayment periods and are faster and easier to pay back. Often there are special terms and conditions applied by loan providers in exchange for fast and convenient access to cash.

Today there are many choices of loan services companies for every type of financial situation. It’s up to you which would be the best option to take; These depend on repayment conditions, how much time is allotted to pay them, and what fees and terms are involved.

We’re here to offer up a basic guide on how to choose the best short-term loans available in Australia today.

Who is eligible?

In general, short term loan borrowers need to be:

  • 18 years old and up
  • An Australian citizen or a permanent resident
  • Currently employed or has a source of income
  • With Identification, in the form of a passport, license, or medicare card

Aside from these eligibility criteria are some requirements:

  • Must be able to provide proof of income, employment, or a source of funds such as Centrelink
  • Must not be under hardship status, have a bad credit rating, or paying another loan
  • In some cases, the loan is secured, and needs collateral as a condition (for higher amounts)

These vary from provider to provider depending on the amount of the loan, the borrower’s financial capability, and the company’s clauses and conditions. Other loan providers can offer their services to borrowers with bad credit history, no collateral, or experiencing hardship. They must adhere to certain rules though.

Why apply for a short-term loan?

These loans are usually smaller borrowed amounts enough to cover common but unexpected expenses, medical emergencies, house or auto repairs, replacements, immediate personal or home needs, purchases in between paydays or in-between jobs, last-minute buys, or any purchase that isn’t timely but still important.

These smaller, outside-the-budget expenses can be addressed easier with these loans. However, there will be some terms to consider: Often, there are higher interest rates, higher penalties, and even stricter terms in exchange for instant quick cash convenience.

How do they work?

Short-term loans today can be stricter when it comes to their terms and conditions. These will also have varying conditions imposed on borrowers. Others will have a shorter, faster timeframe to pay it back, while others will accept more flexible installments. Usually, there are either strict credit checks, or no credit checks at all, but there will be a catch from the easier and more flexible providers.

Some will impose certain limits or set loan amounts depending on your available finances and ability to pay. This eliminates fraud and debt trap instances in favor of the loan company. Others will be able to provide medium-sized loan amounts.

However, certain conditions could be included such as collateral, high-interest rates, or special fees. Others don’t have these and have zero interest and zero or low fees, but will have limitations instead.

Common terms and conditions to be aware of

  • The minimum loan amount in the Australian market is $100
  • The common short term loan range (especially from banks) is from $5,000 to $50,000
  • Time to repay ranges from 2 months to a year
  • Upon approval, the wait time for the loan can be in 30 minutes or 1 to 2 business days
  • These are mostly unsecured loans with no collateral, but still bound by Australian laws

Short-Term Loan companies in Australia

It could be difficult to choose from local short-term loan providers. You will have to sift through a number of them. Each has its repayment terms, fees, and features. Others will offer just the right minimum amount you need with the best repayment options to suit your situation.

A few rules to consider before applying for a short term loan:

  • Research for your best option
  • Once you make the choice, know how the company works
  • Know all of the fees and hidden fees associated with the loan
  • Calculate the interest rate and the total repayment time if they will fit your income and budget
  • Check if there are better alternatives to short-term loan providers

Other forms of short-term loans

Some short-term loans can come in the form of other loan services offered in the market. All of them can offer small to medium amounts with the same short-term repayment conditions, just under a different name. Some are not necessarily loan providers. Short-term loans in different forms can be accessed from your banks, through government assistance programs such as Centrelink, and a few other public finance services.

Short-term loans don’t always have to be through loan providers. You may already have a more convenient way to borrow money from existing companies, government institutions, or services where you are a member. They may also have easier and more flexible terms or zero to lesser fees. If their limits are within your needed range of funds, they may be your better options.

Payday loans

Your payments will be deducted from your source of income every payday. Usually, this would be at the end of the month or every fortnight, depending on your salary schedule. While these are installment payments on payday loans, be aware that their fees are also as big as regular loan companies as well. The longer the repayment terms, the more they rack up in fees and interest.

Buy now pay later loans

Buy now pay later loans are the most popular loan services right now. You can borrow instant cash or credit and pay later, often with zero or very low fees and interest. The biggest advantage is from smaller loans that can be paid as soon as possible. BNPL services also offer the most convenience and are available through apps.

App-based credit services

Most BNPL services are available via apps and are best used if you are purchasing items and services affiliated with these companies. You can instantly get the purchases and deal with repayments later. The fees are also either zero or very low, as long as repayment terms are followed.


There are Centrelink loans you can avail of that might fit your budget. Since the funding source is from the government, your payments are secure and sure. You would need to post a claim first using your
Customer Reference Number (CRN). Often these are for personal and priority loans that will be set up and then paid through your Centrelink payments, so the total should tally with the funds you will be receiving.


Different short-term loans are available from your banks. It can be in the form of an overdraft, extra credit, or emergency funds. Often, these services will no longer need the eligibility criteria and requirements discussed above. You would need to check if their fees and any interest rates involved if any are cheaper than regular loan companies to maximise your funds.