The short version
- Some lenders can approve and pay the same day, usually if you apply early on a business day.
- How fast the money arrives depends on your bank and the payment system it uses.
- Fast doesn't mean you should skip comparing rates and fees.
How same day loans work
A same day personal loan is an ordinary personal loan from a lender that can approve you and pay the money on the day you apply. You can usually borrow from a few thousand dollars up to around $50,000, and repay over a few months to several years.
Other personal loans can take several days. Speed varies by lender: the big banks generally take longer than online lenders.
Who offers same day loans
Mostly online lenders, where you apply and are assessed entirely online. Many use automated checks of your bank statements and credit report, which speeds up the decision.
How fast the money arrives
Some lenders can approve you and pay the money within hours. It's usually quickest when you apply early on a business day, have your documents ready, and bank with a bank that accepts fast transfers. A secured loan takes longer, because the lender checks the asset.
What they can be used for
Most same day loans are unsecured and can be used for almost anything, such as:
- Urgent costs that can't wait, such as medical or funeral bills.
- Car or home repairs that insurance doesn't cover, or won't pay for in time.
- A bond on a new rental.
- A bill that's due before your next pay.
Pros
- Money for urgent costs, such as a car repair you need to get to work.
- Mainstream personal loans, with the same protections as any other.
- Online applications that can be done in minutes.
Cons
- Rushing can mean a costlier loan. Take time to compare.
- Same day payment usually needs an early application and quick ID checks.
- Some fast lenders charge higher fees.
Before you apply
Fast money still has to be repaid, and you don't need a same day loan just because one is available. Ask yourself:
- Do I need the money today, or could it wait a few days for a cheaper option?
- Will this loan make things better or worse over the next year?
- Can I afford the repayments as well as rent and bills?
Other ways to get money quickly
- Ask the company you owe for more time or a payment plan. Many will agree.
- Use savings, or redraw extra repayments from a home loan or personal loan you're ahead on.
- Ask your bank about an overdraft on your everyday account.
- If you get Centrelink payments, ask about an advance payment.
- A rental bond loan from your state government can cover a bond, often interest free. Rent arrears help and no interest loans are also available if you qualify.
- To pay off credit card debt, a debt consolidation loan or a balance transfer card may cost less.
Options to be careful with
- Credit card cash advances charge a high rate, often over 20% a year, from the day you take the cash, plus a fee.
- Payday loans and other small amount loans charge high fees for small amounts.
- Borrowing from family can work, but money troubles between relatives can add to the stress, so agree the terms in writing.