Pros And Cons Of Instant Loans | Nifty Loans Investigates

The Pros And Cons Of Instant Loans

Looking for a quick fix?

During times of need, an instant loan sounds pretty convenient, right? Unlike traditional loans, instant loans have short approval times and short repayments periods. With instant loans, there’s no need to wait long periods of time or deal with endless paperwork. It’s a speedy service designed to provide quick money to borrowers. But before you jump into any agreements, there’s a few things to know and consider. Let’s talk about the pros and cons of instant loans.

Pros of instant loans

Easy application

Instant approval loan providers generally have quick and easy online application processes. Therefore, your application could take a matter of minutes to complete! You can fill in your application form and submit all documents online. If you’ve applied for an instant loan within business hours, lenders could process your application on the same day you’ve applied.

Quick approval

If you’ve ever found yourself in a situation where you need emergency funds and there’s no time to wait, instant loans can be super handy. Once you’ve sent in all of the necessary paperwork, a lender can give you a quick decision depending on your application status. Most lenders who offer instant loans will require less information than a traditional lender would. These types of lenders typically specialise in loans therefore their process is much more streamlined from application to approval.

Bad credit? Don’t sweat it!

Depending on your lender, you might not need a perfect credit score to qualify for a fast cash loan. Instead, these lenders will look at your ability to pay now. They may have a look at your income and outgoings rather than your past poor credit history. Depending on the type of loan you are applying for you may need an asset of value such as a car, bike, boat or jet ski to attach to your loan as equity. In saying that many small personal loans can be unsecured which means you won’t have to put an asset up as collateral.

Instant cash

Once a lender has received your signed contract you could see the cash in your bank account on the same day of approval. If your lender offers the New Payment Platform (NPP) and you have an NPP-enabled account, you could receive your money within a matter of minutes. If not, it will always be useful to enquire before signing to know gauge when you’ll receive the funds.

Cons of instant loans

High interest rates

Although instant cash loans online can offer customers the cash they need quickly, they usually charge high interest rates, depending on the amount you’re looking to borrow. These loans usually work on a short-term basis which means borrowers must pay back their loan in a short amount of time. This will vary from lender to lender, though, the usual time-frame for this product will be 9 – 24 months.

But wait, there’s more… On top of that, fees and charges could include an establishment fee and a possible monthly fee. This will vary between lender to lender, so it is essential that you research prior to applying for a loan to avoid getting stuck with unknown fees.

Impact on your credit file

What you may not realise is that these loans could affect your credit score if you fail to make repayments. This can result in a default which will most certainly go on your record. Additionally, applying for too many instant loans can lower your credit score and may look bad to future lenders. To avoid this, it’s best to keep tabs on the number of applications you’re filling out and continue to monitor your credit report for changes.

Things to consider…

Borrowing money may not solve your financial problems. So to avoid finding yourself in a greater amount of financial trouble you should only borrow what you need and plan to spend it wisely. To gain the most benefit from your loan and avoid paying late fees, you should always make payments on time.

With countless lenders in the market, it can be overwhelming and sometimes difficult to make the right choice. Finding a trusted lender who is secure and reliable is the best option. Most instant loan lenders operate online so it’s a good idea to check out their reputability from their website. Their site should be transparent with information about their fees and payment structure. 

Before shooting through a loan application, we would suggest that you consider all of your options. Have any friends or family that could lend you the money? Got any furniture posing as a glorified dust collector that you could sell? What about doing some odd jobs around the neighbourhood? Loans can be expensive and should be taken when all other options have been exhausted.

If you’ve decided an instant cash loan is the right option for you and you’ve found the right lender make sure to read the complete loan agreement before you accept the offer as some lenders may have hidden costs. If you’re willing to do some research, look into the loan you’re after and get a sense of the average rates available. Ultimately, it’s always best to be well prepared. A loan is an important financial decision you should only make after understanding the pros and cons as well as considering available alternatives.

How Nifty can help

So we’ve discussed the pros and cons of instant loans and you’ve determined that a quick loan is the most suitable step forward for your finance. Then why not apply with Nifty? Although we cannot offer instant loans, we can offer the next best thing – fast personal loans! We are 100% online, therefore you can apply from the comfort of your own home. We strive to provide quick approvals to all our customers.

Applying for a Nifty loan couldn’t be easier! If you can tick these boxes you’re all set to go!

  • Be 18 years of age or over;
  • Be an Australian citizen or permanent resident;
  • Have been receiving a consistent income into a personal bank account for at least the past 90 days;
  • Have a mobile phone number and email address.

Our loans range from $2,500 to $10,000 and you can repay them over a 9 to 24-month period, depending on the amount you borrow. More importantly, we are a committed responsible lender who believes in 100% transparency. We understand that when you need money you need it now. 

If you apply during our regular business hours, you could get an outcome in 60 minutes*. What’s even better is that once you’ve been approved you could have your cash in your account and ready to use in 60 seconds**! We think that’s the closest you’ll get to instant loans! Below we’ve provided the 3 types of personal loans you could apply for with Nifty: 

Loan type Secured options Loan amount Loan term
Medium personal loan Unsecured or secured $2,500 to $4,600 9 to 24 months
Large personal loan Secured $5,000 to $10,000 9 to 24 months

Let’s talk!

Still have some questions to be answered? Our team is always here to lend a hand. So get in touch with our team today or you can check out our FAQ page.

Whether it’s cash loans Brisbane or anywhere else in Australia, Nifty may have a loan for you.

Want to read more on fast money loans or emergency loans?

*If you apply within business hours

**If your bank accounts supports NPP-enabled transactions

Finance Nifty
Finance Nifty

Personal Loan Details

Loan Amounts $5,000 – $15,000
Loan Terms 9 – 24 months
Starting Interest Rate (APR) 11.42% (Excellent Credit)
Starting Comparison Rate 14.49% (Excellent Credit)
Ceiling Interest Rate (APR) 21.24% (Average Credit)
Ceiling Comparison Rate 45.56% (Average Credit)
Type of rate Fixed Rate
Repayment options Weekly, Fortnightly, Monthly
Monthly Fee $0
Early repayment fee $0
Average turnaround 60 minutes*
Loan Options Unsecured & secured options

Credit criteria and terms and conditions apply. Representative example: based on a loan of $10,000 over 36 months a borrower with an excellent credit history can expect to pay a total of $12,389.76. WARNING: This comparison rate is valid only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate with the lender that finances your loan. Interest rates vary subject to a full credit assessment. This represents a comparison rate of 14.49% p.a. and includes all interest and fees included in your loan repayments over the life of your loan. For our personal loan product the APR starts from a minimum of 11.42% (14.49% comparison rate) with a maximum of 21.24% (45.56% comparison rate). The minimum loan term is 9 months and the maximum loan term is 24 months. For more details and examples visit our rates and fees page.