Short term loans in Australia describe any loan which needs to be repaid in a short time.
The definition of the short time depends on the money borrowed.
For mortgages 2 years can be considered to be short. For small personal loans 3 months can be seen as prolonged.
Short term loans in Australia generally apply to unplanned and unforeseen situations. Here, the borrower needs a quick cash advance for business or family.
These are probably the smallest loans ($200-$5K). The term is very short and in most cases does not exceed 90 days. Cash advance loans often require a security in the form of valuable personal belongings. If the loan is unsecured then an excellent credit history is demanded by lenders.
By law, the pension loans cannot exceed $500. The maximum loan term for pensioners is 90 days. Pensioners who have security and a high private pension can borrow more. However, they will get interest rate applicable to ordinary borrower (which is higher than the pensioners' loan).
Short term personal loans in Australia carry high interest rates (12%-15%).
Also, majority of financial institutions insist on minimum amount to be borrowed.
Therefore, it is wise to pay these personal loans as quickly as possible. Some lenders offer a fixed rate for short term personal loans. Generally, short term personal loans in Australia are designed for 30-180 days.
Big financial institutions do not specialise in short term loans in Australia.
However, smaller lenders like CashMoney, CashDoctors, CashConverters, CityLoans and GE Money are businesses focused on short term borrowers.
Often, these lenders offer better deals than banks. Also, their approval process is much faster. The short term loans in Australia are for a relatively small money and short periods. Therefore, the financial security of the lender is not paramount.