Short term loans for unexpected expenses

Unexpected expenses can arise at any time. Situations such as urgent car repairs, medical costs or essential household expenses may create short-term financial pressure.

Short term loans are regulated credit products designed to help with one-off expenses rather than ongoing financial needs.

At Fundo, we provide:

• Small Amount Credit Contracts (SACC) from $500 to $2,000
• Medium Amount Credit Contracts (MACC) from $2,001 to $5,000

We also offer Personal Loans from $5,000 to $10,000, which are not short-term loans and are structured over longer repayment periods for larger financial needs.

Loans are subject to assessment, eligibility criteria and approval.

Short-term loans can be expensive and may not be suitable for everyone. Borrow only what you need and can afford to repay.

What are short term loans?

In Australia, short term loans generally fall into two regulated categories:

Small Amount Credit Contracts (SACC)

• Loan amounts: $500 to $2,000
• Loan terms: 5 to 39 weeks
• Cost structure: establishment fee plus monthly fee
• No interest is charged

Medium Amount Credit Contracts (MACC)

• Loan amounts: $2,001 to $5,000
• Loan terms: 9 to 39 weeks
• Cost structure: establishment fee plus interest charges

These loans are unsecured, meaning you do not need to provide an asset such as a car or property as security.

What about Personal Loans?

Personal Loans are a separate product category and are not considered short-term loans.

At Fundo:

• Loan amounts: $5,000 to $10,000
• Repayment terms: typically longer than short-term loans
• Structure: fixed repayments over a defined period

Personal Loans are generally used for larger, structured expenses, such as:

• Significant home repairs or improvements
• Medical or dental procedures
• Vehicle-related expenses
• Larger one-off financial commitments

Because these loans are repaid over a longer period, they are designed differently to short-term credit products.

How applications are assessed

All licensed lenders in Australia must assess whether a loan is suitable before approval.

At Fundo, we review:

• Your income from all sources
• Your regular living expenses
• Existing financial commitments
• Recent banking activity
• Your ability to meet repayments without financial hardship

If a loan appears likely to cause financial difficulty, the application may be declined.

How the application process works

Applications are completed online.

Steps include:

1. Select your loan amount
2. Provide your personal and financial details
3. Give electronic access to your bank statements for assessment
4. Submit your application
5. Receive a decision once your information is reviewed
6. If approved, review and accept your loan contract

If approved and you accept your contract, funds are transferred to your nominated bank account as soon as reasonably possible.

Processing times vary depending on verification requirements and bank systems.

Eligibility requirements

To apply, you generally need to:

• Be at least 18 years old
• Be living in Australia
• Have an active Australian bank account in your name
• Receive regular income of at least $1,000 per fortnight (may include government benefits)
• Demonstrate the ability to meet repayments without financial hardship

Each application is assessed individually.

How much can you borrow?

Fundo offers a range of regulated credit products:

• $500 to $2,000 (SACC – short term)
• $2,001 to $5,000 (MACC – short term)
• $5,000 to $10,000 (Personal Loans – longer term)

The amount available depends on your financial situation and repayment capacity.

Repayment terms

Repayments are set out in your loan contract and must be made as scheduled.

Repayment frequency options may be available depending on your circumstances, for example:

• Weekly
• Fortnightly
• Monthly

The exact term, fees and total repayment amount will be clearly disclosed in your contract before you decide whether to proceed.

What these loans may be used for

Short term loans may be considered for:

• Essential car repairs
• Unexpected medical or dental costs
• Urgent household expenses
• One-off personal costs

Personal Loans may be more appropriate for:

• Larger planned expenses
• Higher-cost repairs or purchases
• Situations requiring longer repayment periods

These products are not suitable for:

• Ongoing living expenses
• Debt consolidation
• Repaying existing loans
• Situations where repayments would cause financial hardship

Fundo Customer Score

Fundo uses internal tools, including the Fundo Customer Score, to help assess affordability and risk as part of the application process.

This score reflects factors such as repayment behaviour and financial stability. It does not guarantee approval and forms only part of the overall assessment.

Things to consider before applying

Before applying for any loan, consider:

• Whether the expense is necessary and one-off
• Whether repayments fit comfortably within your budget
• The total cost of the loan
• Whether a short-term or longer-term product is more appropriate
• Whether alternatives may be available

If you are unsure, you may wish to explore other options first.

Alternatives to consider

Before applying, you may wish to explore:

• Payment plans with service providers
• Using available savings
• Government assistance
• Free financial counselling

You can contact the National Debt Helpline on 1800 007 007 for free, independent support.