Pros And Cons Of Instant Loans | Nifty’s Guide | Apply Today!

Fast Personal Loans

  • Smart and quick application form, which can be completed in minutes
  • 70% of applicants receive an outcome instantly
  • For applications that do not receive instant outcome, most receive a final outcome within 60 minutes!*
*During normal business hours.

Cash in your bank within 60 seconds

88% of our customers have their funds within 60 seconds of signing their contract.*

*Only available for NPP enabled bank accounts

Cash in your bank within 60 seconds

88% of our customers have their funds within 60 seconds of signing their contract.*

*Only available for NPP enabled bank accounts

Fast Personal Loans

  • Smart and quick application form, which can be completed in minutes
  • 70% of applicants receive an outcome instantly
  • For applications that do not receive instant outcome, most receive a final outcome within 60 minutes!*
*During normal business hours.

The Pros And Cons Of Instant Loans

Andy

Andrew Bell

Last updated: May 16, 2020

  • 4 min read

4 min read

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 And Cons Of Instant Loans

Pros of Instant Loans

Easy Application

Instant cash 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.

Cons of Instant Loans

High-interest rates

Although instant loans 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. 

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 struck 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. 

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 an instant 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 $300 to $5,000 and you can repay them over a 6 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 TypeSecured OptionsLoan amountLoan term
Small Personal LoanUnsecured$300 to $2,0006 to 9 months
Medium Personal LoanCan be Secured$2,001 to $4,6009 to 24 months
Large Personal LoanSecured$5,0009 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.

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

*If your bank accounts supports NPP transactions


Andy Andy

AUTHORITATIVE SOURCE

Andrew Bell

Since founding Nifty in 2016, Bell has continued to make waves within the local financial sector for his continued ambition and willingness to adopt emerging technologies.

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Loan Costs

Grown Tree Large Loans

Large Loans

$5,000

Loan amount:$5,000
Terms:9 - 24 months
Establishment fee:Variable
Monthly Fee:$0
APR:21.24%
Comparison Rate:48%**
View Example

Large Loan Example

Loan amounts:$5,000
Terms:18 months,
(78 weekly repayments)
Establishment fee and Total Interest:$1,897.54
Total payable:$6,897.54
Weekly installments:$88.43
View Loan Details
Growing Tree Medium Loans

Medium Loans

$2,001 - $4,600

Loan amounts:$2,001 - $4,600
Terms:9 - 24 months
Establishment fee:$400
Monthly Fee:$0
APR:47.8%
Comparison Rate:65.86%**
View Example

Medium Loan Example

Loan amount:$2,500
Terms:24 Months,
(104 weekly repayments)
Establishment fee:$400
Total other fees:$1,609.44 (reducing interest)
Total payable:$4,509.44
Weekly installments:$43.36
View Loan Details
Potted Plant

Small Loans

$300 - $2,000

Loan amounts:$300 - $2,000
Terms:6 - 9 months
Establishment fee:20%
Monthly Fee:4%
APR:N / A *
Comparison Rate:138.37%**
View Example

Small Loan Example

Loan amount:$1,000
Terms:6 Months,
(24 weekly repayments)
Establishment fee:$200
Total other fees:$240
Total payable:$1,440
Weekly installments:$60.00
View Loan Details
* Not applicable. Small loans do not charge an annual interest rate.

** WARNING: This comparison rate is true 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. Different loans may include other payable fees and charges. All fees and charges will always be displayed on your loan contract.

Loan Costs

Potted Plant

Small Loans

$300 - $2,000

Loan amounts:$300 - $2,000
Terms:6 - 9 months
Establishment fee:20%
Monthly Fee:4%
APR:N / A *
Comparison Rate:138.37%**
View Example

Small Loan Example

Loan amount:$1,000
Terms:6 Months,
(24 weekly repayments)
Establishment fee:$200
Total other fees:$240
Total payable:$1,440
Weekly installments:$60.00
View Loan Details
Growing Tree Medium Loans

Medium Loans

$2,001 - $4,600

Loan amounts:$2,001 - $4,600
Terms:9 - 24 months
Establishment fee:$400
Monthly Fee:$0
APR:47.8%
Comparison Rate:65.86%**
View Example

Medium Loan Example

Loan amount:$2,500
Terms:24 Months,
(104 weekly repayments)
Establishment fee:$400
Total other fees:$1,609.44 (reducing interest)
Total payable:$4,509.44
Weekly installments:$43.36
View Loan Details
Grown Tree Large Loans

Large Loans

$5,000

Loan amount:$5,000
Terms:9 - 24 months
Establishment fee:Variable
Monthly Fee:$0
APR:21.24%
Comparison Rate:48%**
View Example

Large Loan Example

Loan amounts:$5,000
Terms:18 months,
(78 weekly repayments)
Establishment fee and Total Interest:$1,897.54
Total payable:$6,897.54
Weekly installments:$88.43

* Not applicable. Small loans do not charge an annual interest rate.

** WARNING: This comparison rate is true 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. Different loans may include other payable fees and charges. All fees and charges will always be displayed on your loan contract.