Short Term Loans In Melbourne

Break Free Home Loans are a leading mortgage broker in Melbourne, with over 20 years of industry experience. We provide lending solutions and advice tailored to your needs. We work closely with clients as trusted advisors and are accessible to clients when needed.

Our brokers work hard at understanding our client’s unique circumstances and helping them overcome common home loan challenges. Whether you’re a first home buyer or an experienced investor, we’ll help you find the best home loan for your situation. Whether you’re self-employed and have trouble proving your income or you’re a contractor or casual worker, we offer solutions for all types of clients’ income sources.

If you’re looking for short-term loans in Melbourne, you can take out a short-term cash loan, or a short-term personal loan. Both of these options have their own advantages and disadvantages, so it’s important to choose the right one for your needs. If you’re in the market for short-term cash loans, talk to a qualified broker from Break Free Home and Car Loans. We can help you apply with the right lender so you can get affordable, fair short-term finance suited to your needs.

What Is A Short Term Loan?

Short term loans are a type of loan that is typically repaid within a short period of time, usually within one year. They are also known as payday loans, short term cash advance loans or fast cash loans. Short term cash loans are great for people who need money quickly. They’re easy to get and you can usually access the money you need within a few days. However, they generally have high interest rates, so you’ll need to make sure you can afford the repayment amounts. If you need money quickly and don’t have time to wait for a traditional bank loan, a short term loan can be a good option.

Loan Amount

Short term personal loans are designed to be repaid in a short period of time. Most of the time, short term lenders will offer up to $2,000 to borrow with terms from 16 days up to 12 months. You can negotiate to borrow up to $10,000 with limited exceptions for higher amounts on an individual basis. For commercial lenders of short term loans, borrowing limits are higher and usually determined by your business performance, revenue projections, the purpose of the loan and the type of industry you’re from.
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General Requirements

Short-term money loans are extremely beneficial for those who need fast finance. However, you need to meet some basic requirements to qualify for short loans. These conditions include:

  • Be at least 18 years old.
  • Provide proof of income of at least $350 per week. Alternatively, you must meet minimum turnover requirements if you are a business owner seeking a short-term commercial loan.
  • Your source of income must come from a part-time or full-time job.
  • Lenders prefer stability and would like to see a steady employment history.
  • Meet lenders’ minimum requirements from credit scores to being non-affiliated to any bankruptcy or debt agreements.
  • You may receive government benefits such as Centrelink, but your income cannot be solely derived from Centrelink or pension.

How Much Do Short Term Loans Cost

Fast short-term loans are typically expensive because of their quick application and turnaround. You will be trading convenience for cost. When you are considering short-term loans from Australian lenders, you need to consider the high fees and charges associated with these loans. It’s important to remember that they aren’t long-term financial solutions and should only be taken out during financial emergencies.

In fact, short-term loans are one of the most expensive forms of credit. They cost more than traditional personal loans. While there are restrictions for interest charges placed by Aussie lenders for small short-term loans less than $2,000, a larger loan may incur exorbitant costs and cause financial stress. Lenders will charge fees instead, which can add significantly to the total cost of the loan. Typically, these are capped at:

  • 20% of the loan amount for an establishment fee
  • 4% of the loan amount for monthly account-keeping fees

There may also be other fees applicable for short-term instant loans, including:

  • Government fees such as government duties, this is slightly less common.
  • Default fees. This is charged if you miss a payment or fail to pay. They can go as high as 200% of what you borrow.
  • Enforcement expenses. These are charged if you default on the loan to cover the cost of going to court to recover the debt you owe.

For instance, a $1,500 short-term cash loan for 12 months will cost:

  • $1,500 for the total loan amount
  • $300 in establishment fees
  • $720 in monthly fees

The total cost of the loan inclusive of fees will be $2,520. Your fees alone make up 60% of the loan amount. The fee structure for short-term loans with larger amounts will differ, however.

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How To Apply For Short Term Finance?

Short-term loans in Melbourne finance typically involve a quick approval process. You will have to provide some personal and financial information for your application, including:

  • Details of your regular income from bank statements and payslips. For a business owner, this would be a financial statement, tax returns, and cash flow documents.
  • Any government benefits you may be receiving.
  • Personal identification documents such as a driver’s license, proof of age card or passport.
  • Bank account details such as your bank, account name, BSB and account number.

Is It Possible To Get Short Term Cash Loans?

Yes, short-term loans are available from a number of lenders. The process is relatively simple and you can often get your money within a few days. However, short-term loans generally have high-interest rates, so you’ll need to make sure you can afford the repayment amounts. To apply for a short-term loan, you’ll need to:

  • Be over 18 years old
  • Have a regular income
  • Have an Australian bank account
  • Have a good credit rating

Once you’ve met these requirements, you can apply for a short term loan online or in-person at a branch. The application process is usually quick and easy, and you’ll often get a decision within 24 hours. If your application is successful, the money will be deposited into your account and you’ll be able to start using it straight away. Short-term loans are typically repaid over a period of 3-12 months, so you’ll need to make sure you can afford the repayments before taking one out.

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Using Short Term Personal Loans

Short term loans are generally easy to qualify for, and you can usually get the money you need within a few days. But because they are so expensive and can incur serious costs, you should only take them out in the event of:

Expenses Before Payday

If you’re short on funds and you have unexpected expenses before payday, a short-term loan can be a viable option. A short-term loan can work as an income bridge when you’re waiting on guaranteed funds to come in a large payment. Remember, this is not a long-term strategy to cover your everyday expenses.

Urgent Home Repairs

You may have urgent home repair expenses or other purchases you must account for. Short term loans can help you in a number of ways. This includes needing to repair your roof from major flooding, finishing plumbing work, cladding and facade installations to other structural investments essential for the health and safety of your home.

Unexpected Bills

If you find yourself without any other alternative to pay for an overdue bill or a forgotten bill like your utilities or insurance, a short term loan can help. However, be sure to contact your service provider first. They may be able to work out a plan for you to pay your bills or fines in instalments.


A short term loan can help you sort out financial emergencies such as emergency medical expenses or car repairs.
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Short Term Loans VS Long Term Loans

When you need cash fast, a short-term loan can be a great option. Short-term loans are generally repaid within a few months, while long-term loans may take years to repay. You may be able to get short-term cash loans from some lenders without a credit check, but you’ll likely pay higher interest rates and fees.

The following are some considerations you need to keep in mind when deciding between short-term loans and long-term loans:

  • Short-term loans are typically for smaller amounts of money than long-term loans.
  • Short-term loans have higher interest rates than long-term loans.
  • Short-term loans need to be paid off within a few months, while long-term loans offer longer repayment periods.
  • There may be less strict lending criteria with short-term loans, sometimes you can even be waived from a credit check.

Alternatives For Short Loans

While you can get a great deal from some of the best short term loans on the market, you should also consider other less expensive options. These are some alternatives for short loans you can explore:

Credit cards

Some credit cards offer interest-free periods. If you can pay off your balance before the introductory offer ends, you can get interest-free finance. However, if you can’t, the interest rates that kick in will be higher than most types of personal loans.

Personal lines of credit

Rather than immediately opting for short term loans Australian banks, credit unions and finance companies also offer personal and business lines of credit. You can draw from and pay off your credit as needed, and only pay interest for the amount you borrowed and not the entire credit limit.

Rent-to-own agreements

You can find finance or refinance rent-to-own agreements for a number of properties, cars, machine assets, equipment and other personal or commercial purchases.

Peer-to-peer loans or private lending

You can get the money you need from investors, friends and family who are willing to lend to you. This will allow you to borrow at a lesser cost with more lenient lending criteria.


Crowdfunding can be another option to raise funds. You need to take into account any donation fees or other charges that may apply as they’ll affect your fundraising goal.


Long term loans

You can cosign a loan with a creditworthy cosigner or guarantor to qualify for long term loans if you don’t have sufficient income or credit rating.


Secured loans

Most short term loans are unsecured. Looking into secured loans can help you find more affordable loans with cheaper fees and interest rates.

Contact Us

If you’re considering a short term loan, make sure you compare a range of lenders to find the best deal for you. With the help of a qualified broker, you can apply for a short term loan online or in person at a lending institution. Our brokers can complete your application and negotiate with lenders on your behalf. If you’d like a stress-free loan approval process, rely on us to build a strong case for your loan approval.

Frequently Asked Questions

From considering your borrowing power, to weighing the potential benefits and risks, the following are some of the most frequently asked questions about short term finance:

What Are Short Term Money Loans?

A short term money loan is a type of unsecured loan that can help you access funds quickly and easily. They are typically used to cover unexpected expenses or bridge the gap between paydays, and can be a great option if you need access to cash fast.

Short term loans are usually repaid over a period of 3 months, although some lenders may offer terms of up to 12 months. The repayment period will be agreed upon when you take out the loan, and will be based on your individual circumstances. Be sure to compare different lenders to get the best deal. And always remember to repay your loan on time to avoid late fees and penalties.

How Much Does A Short Term Loan Cost In Melbourne?

One of the most costly types of credit is short-term funding. They are more expensive than traditional personal loans. While Aussie lenders may limit interest charges for small, short-term loans less than $2,000, a bigger loan might result in prohibitive costs and financial strain. Fees will be charged instead by lenders, which can significantly raise the total cost of your loan. These may include:

  • Establishment costs — which can go as high as 20% of your loan for smaller loan amounts.
  • Monthly account-keeping fees — these are capped at 4% for smaller loans.
  • Default fees — which can go as high as 200% of what you borrow if you miss a payment or fail to repay your loan.
  • Enforcement expenses — lenders can ask you to pay for the cost of going to court to recover the debt you owe if you default on their loan.

Which Loan Is Better Short Term Or Long Term?

Short-term loans can offer a number of benefits, including:

  • Quick and easy access to cash: You can often get your hands on the cash you need within 24 hours or less. This can be crucial in emergency situations where you need money fast.
  • Flexibility: Short-term loans can be used for a variety of purposes, from consolidating debt to financing a vehicle you need to home repairs. This makes them much more versatile than other types of loans.
  • No collateral: Short-term loans are unsecured, meaning you don’t need to put up any assets as collateral. This makes them accessible to a wider range of borrowers.
  • Convenient repayment terms: Short-term loans usually have shorter repayment terms than other types of loans, so you won’t be stuck in debt for years.

However, they also come with a number of restrictions and extra costs such as:

  • Higher fees: This can include service fees, establishment fees, monthly account-keeping fees, and other charges such as penalty fees or duties.
  • Higher interest rates: Short-term loans are known for charging high-interest rates. This can be as high as 48% of your total loan amount.
  • Higher monthly repayment: Because the repayment terms are much shorter than long-term loans, you will need to make higher monthly payments to pay off your loan sooner.

No matter which option you choose, make sure you compare different lenders to get the best deal. And always remember to repay your loan on time to avoid any late fees or extra interest.

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