Accessing money used to mean lining up in a bank and then waiting for days to see if you were approved for your loan, but not anymore. With the rise of online payment providers, people can borrow money in as little as fifteen minutes or at the most one business day. Explore the options for a small personal loan that lenders can deposit in your account quickly.
⚠️ 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 8:00am 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 works 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.
Compare fast, small personal loans in New Zealand
How fast can I receive a personal loan?
Most short-term loan providers offer same-day turnaround. The earlier in the day you apply, the more likely you will receive your loan that same day. Here are some other things to consider:
- Your bank. If you bank with the same bank the lender uses to transfer the money, usually one of the “Big Four banks”, you will receive your funds within minutes. The Big Four tend to have quicker transfer times than smaller banks and credit unions.
- When will you receive approval? While you might apply early in the day, it can vary as to when you receive consent for the funds, as lenders will only transfer the money when you agree to the contract.
- Cut-off times. Most lenders have a cut-off time, usually between 2pm and 4pm, by which you need to apply and receive approval to access funds on the same day.
How does the loan process work?
The process of applying for and repaying a loan differs between lenders and the type of loan you take out. Typically, you need to consider the following:
- Examine the available options. Decide what kind of credit you want, then find a lender that can offer these features. You need to think about whether you are eligible; the loan amount and turnaround time.
- Start the application process. The application process depends on the lender. To apply for a small payday loan, that you can see on finder.com/nz, click “Go to Site” and complete the application form. Usually, you need to provide documents to confirm your identity, your employment and the last three months worth of bank account statements. The lender may also perform a credit check.
- The approval time. Most lenders can tell you if you have approval promptly, (within one minute or less) which may be the final approval or it may be conditional pending a credit check. Once you receive consent, you then sign the credit contract and return it to the lender.
- Receive your loan amount. As these loans are “fast” you will receive it within one business day, and some providers can even have your loan amount with you within an hour.
- Repaying the loan. Payday loans are called so for a reason, as you typically repay them in line with your pay cycle, and the maximum repayment term is about one to two months. If you receive your pay weekly, the lender will require you to make repayments each week. If you receive your pay fortnightly you need to make repayments every two weeks, and so on. Check the repayment terms before you apply to make sure they are manageable on your budget.
Tristan's big move
After deciding to move out of his parent’s home, Tristan is carefully organising his finances and budget, so he has enough money for the bond; his first month’s rent and moving costs. He owns a ute, so he can save money there as he doesn’t need to hire movers.
Unfortunately, two days before Tristan is due to move, his ute breaks down and needs urgent repairs. He uses the ute for work, and it needs to be working for the following week. The vehicle will only cost $250 to repair, but that is $250 more than Tristan has. He doesn’t have a credit card and spent all his money covering the moving costs, so he considers his small, short-term loan options.
Tristan finds a lender that morning and applies for a small payday loan. Because he requests the loan and receives acceptance before 2.30pm, the lender deposits the funds in his account within the hour.
Questions to ask your lender about small personal loans
These types of payday loans are quick and convenient, but there are a few things you should consider before you apply.
- What is the cost?
Because of the convenience of these loans and the quick turnaround for approval, lenders will usually charge higher interest rates and fees. Your repayment amount depends on your payday loan terms and how often you make repayments.
- Are you eligible?
If you have any questions regarding your eligibility, you should get in touch with the lender before applying. finder.com/nz provides in-depth eligibility criteria on the payday loan review pages, so before you ask you can ensure you meet the lender’s benchmark. However, all providers judge applications on a case-by-case basis, so there is never a guarantee of approval.
- Are there any restrictions?
Some lenders place restrictions on their loan features, such as redraw facilities or repayment requirements, and if you do not stick to these, they may charge you. You need to familiarise yourself with all aspects of a small payday loan before you apply.
Are you looking at applying? What you need to know
- Meeting the eligibility criteria
The eligibility criteria for these small payday loans differ between lenders. Typically, you need to be over the age of 18 and a New Zealand citizen or permanent resident. While some small payday lenders will consider you for a loan if you have a bad credit history, you still need to prove you are receiving a regular income and can pay the money back without it causing you hardship.
- Submitting your application
These small payday loans offer a quick application and approval process that you usually complete online. If you would like to apply with any of the lenders on this page, you can follow the secure “Go to Site” link to their online application form. You need to provide personal details and information relating to your finances. Some lenders will notify you immediately of your application outcome and send the funds soon after.