The basics of a cash loan

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Are you thinking about a cash loan but confused about how much the repayments will be? Let’s put it in black and white for you.

At Club Money, we want to educate, rather than attempt to confuse our customers. We believe that if our customers are informed they will have the best chance in repaying on time and reducing their loan fees.

Read on to find out about the fees that make up a cash loan, and see some typical loan amounts and repayment schedules.

Ready to Apply for a cash Loan? Click Here.

THE PARTS OF A cash LOAN

How much does a cash loan cost? Well, it depends on these four parts:

  • Loan Amount. This is sometimes referred to as the ‘loan principal’.
  • Length of Loan. This can be also be referred to as the ‘loan period’ or ‘repayment period’.
  • Establishment fee. This single fee is calculated at 20% of the loan amount.
  • Monthly Fee. This fee is calculated at 4% of the loan amount, charged each month over the length of the loan.

The total amount to be repaid will be the sum of the initial loan amount plus fees.

WHY IS THERE AN ESTABLISHMENT FEE?

A cash loan is a quick and convenient loan available to almost everyone, including bad credit customers. Only a small amount of documentation is required to set up a cash loan, and approvals are usually made the same day.

An establishment fee is the cost of this convenience and easy loan access. It also means that a large bulk of the loan fees are clear and upfront, rather than being hidden using complicated interest rates and repayment periods.

SOME EXAMPLE LOANS

So what is the right loan amount for you? Use these examples as a guide to understand how much a short term loan will cost, and what is a suitable amount for your needs.

Repayments are made monthly in these examples.

800 dollar loan over time graph

Minimising the length of the loan will reduce your overall loan fees.

A $800 loan paid back in one month

  • Establishment fee: $160
  • Monthly fee: $32
  • Total fees: $192
  • Total to be repaid: $992

A $800 loan paid back in two months

  • Establishment fee: $160
  • Monthly fee: $64 (over 2 months)
  • Total fees: $224
  • Total to be repaid: $1,024

A $800 loan paid back in three months

  • Establishment fee: $160
  • Monthly fee: $96 (over 3 months)
  • Total fees: $256
  • Total to be repaid: $1,056

A $800 loan paid back in four months

  • Establishment fee: $160
  • Monthly fee: $128 (over 4 months)
  • Total fees: $288
  • Total to be repaid: $1,088

MANAGING YOUR LOAN

A cash loan can get you out of a sticky situation, quick. It is important however, that you stick to the repayment plan during the loan period. Minimising the length of the loan will reduce your overall loan fees. Use the Money Smart Loan calculator to work out repayments.

This means setting out a good weekly budget and holding off luxury purchases until the loan has been paid off.

If you are having difficulties paying your loan, you can negotiate your payments with us and avoid incurring financial penalty fees.

Got it? Call us on 1300 792 932 and apply for a cash loan today.