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Short-term loan finder™ – Compare your options here

Short-term loans are a financial ladder that can help you reach the things you desire.

⚠️ Warning: Be cautious with short-term loans

If you're experiencing financial hardship and would like to speak to someone for free financial counselling, you can call the MoneyTalks helpline operated by FinCap on 0800 345 123. It is open from 8am to 5pm, Monday to Friday, and 10am to 2pm Saturday. When comparing short-term loans, ensure you take into consideration any fees, charges and rates you may be charged.

Alternatives to short-term loans

Consider these alternatives before applying for a payday loan:

  • Use online Government resources. The Commerce Commission New Zealand website explains how loans work and what to be aware of when borrowing from a lender.
  • Payment plans. Talk to your electricity, gas, phone or water provider to see if you can work out a payment plan or receive an extension on your due date if you’re behind on payments.
  • Contact your creditors. Speak with creditors about extending the due date of your payment, or working out a new payment plan that works for both of you. Seek personal loans elsewhere. Consider a small personal loan from a bank or a credit union. You may qualify for a loan with much lower interest rates than those offered by payday loan companies.
  • Pay with credit card. Consider paying with your credit card to cover your emergency bills or payments. This is not a long-term solution, as you’ll need to pay off the balance as soon as possible, but it’s an alternative to a short-term loan with high – and immediate – interest rates.
1 - 2 of 2
Name Product Max Loan Amount Loan Term Turnaround Time Loan Interest Establishment Fee Account Administration Fee
Save My Bacon Flex Loan
12 - 36 months
Same day
49.95% p.a
$4 per month
Eligibility: Be 18 or over, have an income of at least $400 per week and be a NZ citizen, permanent resident or have a valid work visa.
Medium term loans from $2,000 to $5,000 with no hidden fees.
Moola Loan
92 - 184 days
Often available in under 60 minutes
292% p.a.
(fixed for the term of the loan)
Eligibility: Be 18 or over, be in employment and be a New Zealand citizen, permanent resident or have a valid working visa.
Borrow up to $1,500 and enjoy a flexible repayment plan.

Compare up to 4 providers

Short-term loans can fill a gap between now and payday, especially if you have an instant need for cash – but are they safe?

Loans like mortgages and car loans are usually with you for a long time, but what if you need a short-term option? Borrowers take out these loans with the intention of paying them back quickly. They’re becoming an increasingly popular option for Kiwis looking to borrow money and deal with the resulting debt in a timely fashion.

Types of short-term loans in New Zealand

People use short-term loans for a variety of purposes. There are a few different types you can consider:

  • Payday loan

People use payday loans as a short-term solution, so they can repay them using their next pay cheque. The lender usually bases the loan amount (which can be as high as $2,000 or as low as $100) on your income and current financial situation, so it can be an option for people with less than perfect credit.

  • Unsecured short-term loan

An unsecured loan does not require you to use an asset, such as a car or house, as collateral. The eligibility requirements are far stricter because the lender is taking on more risk and will receive nothing if you default on your loan. Unsecured loans usually offer a minimum term of 1 year.

  • Secured short-term loan

Secured short-term loans involve you securing an asset, for example, a car or your house, which means the bank can repossess it if you default on the loan. These loans pose minimum risk to the lender but are extremely risky for you as the borrower since you may lose the asset you put up as security.

Make sure you weigh up the benefits and drawbacks?

  • Short-loan terms. Quickly repaying the debt is one of the most significant benefits of a short-term loan, meaning less interest and fees.
  • Various loan amounts. You can typically borrow between $100 and $2,000, but it may be as much as $10,000.
  • High cost. Short-term loans, from standalone lenders, come with higher rates and fees than banks and credit unions.
  • Dodgy lenders. While many reputable lenders operate in this space, you may come across dodgy ones that approve you for a loan you cannot afford.

Reasons you might need a short-term loan

People choose to get short-term loans for a variety of reasons:

  • To pay for unexpected or forgotten bills or payments
    Sometimes bills can pile up, and it’s not until the reminder letter comes from the utility company that you remember you haven’t paid. If the bill is exceptionally overdue, it could disrupt your service supply. If you speak to your provider, but it won’t approve an extension, a short-term loan may help solve the issue.
  • To cover expenses until payday
    If you receive your pay fortnightly or even monthly, you may find you are short on funds for 1 or 2 days or even a week. If you can’t make your funds last until payday, you could apply for a short-term loan. Bear in mind that these loans come with higher than standard repayment costs.
  • To bridge an income gap, when you are waiting for a payment
    If your employer is sometimes unreliable with your pay, or a payment is taking longer to clear than expected, then you may wish to use a short-term loan to pay for a necessity before your money hits your account.
  • To pay for shopping or a holiday
    Sometimes you need to get away from the hustle and bustle, but don’t have the money to make it happen. If you want to take a holiday but don’t want the hassle of saving, a short-term loan could make your vacation arrive sooner.
  • To pay for an item when you don’t want to or cannot use a credit card
    It’s no secret that retailers love cash and you can often pick up items at a significant discount if you choose to pay with cash over plastic. You can also use cash at garage sales and op shops to snap up a bargain.

Example: Sarah and her mechanic

Sarah finds herself in a difficult situation. It's a week before Christmas, and her car breaks down on the way to the shops in Napier. She doesn't use her car often, mainly to get to places on the weekend, so usually, it wouldn't be an issue. The trouble is, Sarah needs her car to visit her family in Auckland on Christmas Day, so she can't wait to repair the car the following week when she receives her pay.

The car repairs will cost $450, but her credit card is maxed out and she needs to pay the mechanic tomorrow. Sarah considers her options and finds that a short-term loan will best meet her needs. She will receive her pay at the end of the month, so she can repay the loan without difficulty.

* This is a fictional, but realistic, example.

Should you apply for a short-term loan?

When deciding whether to apply for a short-term loan, you need to consider your overall financial position. Are you borrowing money to pay off other debt? If you are, it is a risky practice and has the potential to lead you into a dangerous spiral of debt.

Think about whether you are using this loan to pay for long-term recurring expenses, such as everyday living, because this is a dicey practice and one that will see you add to your debt. You need to consider your current debt and your ability to pay back a short-term loan.

Frequently asked questions about short-term loans

There’s no shortage of misinformation about short-term loans. If you have a question, please feel free to leave a comment below.

More guides on Finder

  • Payday loans in Auckland

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  • Payday loans for single parents

    Single parents often do it tough. If you are running low on cash and need to pay for things such as food, school items or even transport, a payday loan might be able to help you out of a bad situation.

  • $1,000 cash loans

    Don’t stress if you need $1,000 cash urgently. Consider applying for a loan from a payday lender for a fast financial solution.

  • Urgent cash loans

    How to find fast access to finance when you need it the most.

  • Car repair loans

    Your guide to the finance options available when you need some extra funds to repair your car.

  • Low-income loans

    Need to borrow money but you’re on a low income? There are lenders that will consider you. Find out what your options are and how much you need to earn to be eligible for a low-income loan.

  • Personal loans vs payday loans

    Find out the difference between personal loans and short term payday loans to see which will be best for you.

  • Can you repay your payday loan early?

    Why not repay your payday loan early if you can? Find out which lenders let you close your loan early without charging you a penalty or fee.

  • Loans for bankrupts

    If you have declared bankruptcy and need a loan, there are options available.

  • $1,500 loans you can apply for

    Find out which lenders will approve you for a loan up to $1,500 and what you need to apply.

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