If you need money right now and are looking to get a personal loan or a cash advance, it’s important to know the difference between the two.
Personal loan
A personal loan is a short-term loan with a longer repayment period of three to six months for a high amount. You can get a personal loan of up to $2500, but the exact amount given to you by the lender will depend on your income and your ability to pay it back. With a personal loan, you’ll have to undergo a credit check, which requires qualifications for bankruptcy status.
To be eligible for a personal loan you need to:
- Be 18 years of age or older
- Be a permanent resident or citizen of Australia
- Show proof of residency at the home you currently live in for the last three months
- Show proof of income that your employer pays into your bank account or a Centrelink pension with a 90-day bank statement
- Pass the credit check – it’s okay if you have defaulted occasionally
- Not have undischarged bankruptcy – it’s okay if you have discharged bankruptcy
- Not be bound by a Part IX or X Debt Agreement
The application will be assessed on merit and, if it’s accepted by the lender, you can expect to be able to withdraw the funds from your chosen bank account on the same day or on the following day via electronic funds transfer.
Cash advance
A cash advance is also a short-term loan, but it has a shorter repayment period of one to two months or six weeks (no more than 62 days). With a cash advance, you don’t need to get a credit check or provide other financial documents.
To be eligible for a cash advance you should:
- Be 18 years of age or older
- Show proof of residency at your current home address for three months or more
- Prove that you’ve been employed for three months or longer or that you’re receiving a Centrelink pension
- Meet the employment and identity check requirements
- Confirm your income to show that you can pay back the cash advance
- Provide proof of income with a 3-month bank statement
If the lender approves your application for a cash advance, the money will be available to you through your chosen bank account or your Prepaid Visa Card. You’ll receive the funds on the same day or on the next day via electronic funds transfer.
