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Do you need cash as soon as possible?
Personal loans are one of the most popular and flexible ways Australians can access fast finance. This article from the ABS found Australians borrowed $9.04 billion in personal loans in the June 2025 quarter.
In fact, quick finance options are more popular than ever before.
The Problem
Too many borrowers don’t fully understand their personal loan options or how the market works. Instead of shopping around and comparing, they accept the first offer and get a far worse deal.
What You’ll Learn:
- Finance Options That Work
- The Way Quick Loans Work
- The Smart Way To Pick The Right Loan
- What Lenders Are Looking For In A Loan Application
The Quick Loan Market Has Evolved
Quick loans aren’t what they used to be.
If you remember the 2000s, you’ll recall the sluggish application and approval process. This was the industry standard until lenders embraced digital technology and began competing on speed and convenience.
Here’s what’s going on:
Digital lenders now provide quick and easy 1-hour loan approval with some lenders providing same day funds.
These days, it’s possible to apply for personal loans with leading online lenders and receive the money you need faster than ever before.
The average personal loan amount is $22,643 for unsecured loans. This average loan amount may seem small compared to mortgages but represents a large amount of cash that can help with everything from emergency repairs to consolidating other debt.
By the way, the personal loan market is projected to grow at 23% per year through 2034. Borrowers can look forward to more competitive and convenient personal loan options.
Understanding Your Personal Loan Options
Don’t get me wrong. Not all quick loans are created equal.
In fact, there are several types of personal loans and multiple features to consider when shopping around for a loan.
These differences in options and features may not seem huge, but they can result in thousands of dollars in interest rates and fees.
Quick personal loan types include:
Unsecured, Secured, Fixed Rate and Variable Rate loans.
Unsecured Personal Loans
The most common type of quick personal loan is the unsecured personal loan. An unsecured loan is where you don’t need to offer the lender any collateral such as your car or house to get a loan.
The down side?
Interest rates are usually higher because there is more risk for the lender if you fail to repay the loan.
The average unsecured personal loan interest rate is 13.87% p.a. though rates can vary anywhere from 6% to 25% depending on your individual circumstances and credit score.
Secured Personal Loans
The best way to improve interest rates is to offer security or collateral to a lender. Secured loans typically have lower interest rates because there is less risk for the lender.
Secured personal loans can be secured with assets such as a car, savings account or another valuable asset.
The upside is improved interest rates. The downside is obvious. You could lose your asset if you fail to repay the loan.
Fixed Rate vs Variable Rate Loans
Fixed rate personal loans provide an interest rate that will not change for the life of the loan. Repayments are predictable and won’t change over time.
Variable rate loans will fluctuate depending on changes in market conditions. If interest rates go up, your repayments will too. If they go down, your repayments will be lower.
The question of which one is best is up to you. Fixed rate loans are good if you want the certainty of fixed repayments. Variable rate loans are better if you can tolerate some fluctuation.
How Quick Can Quick Really Be?
So how quickly can you really get a quick personal loan?
The reality is the term “quick approval” means anywhere from 24 to 48 hours from the initial application to funding. Some quick loan lenders offer even faster approvals.
Typical timelines include:
Application submission, Initial assessment, Document verification, and Approval and funding.
The truth is you shouldn’t believe every “instant” approval ad you see. Your actual approval time depends on the complexity of your application and how quickly you provide documents.
There is no one answer to how long it takes to get a quick personal loan. Some applicants can get same-day approvals. Most lenders take one to three business days.
Loan Application Assessment and Approval
Most lenders make fast approvals through automation. Algorithms process applications in real-time and provide an instant decision based on your data.
This speeds up the approval time from weeks or even months in the past to mere hours in 2025. There are several factors lenders look at when processing an application.
Credit Score
Credit scores are the most important thing on a loan application. Lenders make credit decisions based on your credit score. Loan applicants in Australia have an average credit score of 782-801 which is considered “very good”.
The higher your credit score, the better the interest rate you will qualify for.
Income and Employment
Stable income is a must. Lenders will typically ask for evidence in the form of recent payslips, tax returns or bank statements showing regular direct deposits.
Employment history is another important factor. Constant job changes or employment gaps will negatively impact an application.
Debt-to-Income Ratio
Loan applicants often get rejected for existing debts and expenses that are too high relative to income.
This is one of the main reasons people get turned down for personal loans. Your debt-to-income ratio is a very important figure.
The Mistakes to Avoid
Do you want to know what is the #1 killer of most loan applications?
It’s these common mistakes applicants make over and over again:
Applying for too much. If a lender offers you $50,000 but you only need $10,000, only borrow what you need.
Not checking your credit score first. The unpaid phone bill you left three years ago might still be haunting you. Check your credit score first.
Incomplete applications. Missing documents delay approvals. Get everything ready ahead of time.
Multiple simultaneous applications. This affects your credit score. Research first, then apply to the lender that best suits your needs.
The Smart Way To Apply For A Quick Personal Loan
You can do this right.
The first step is to figure out exactly how much money you need to borrow. What you need is not what you want but rather the exact amount.
Next, estimate how much you can afford to repay monthly. Online calculators can show you how different loan amounts and terms affect your repayments.
Compare at least 3 to 5 different lenders. Compare all the important numbers. This means interest rates, fees, features and flexibility.
Key things to compare include:
- Interest rates and comparison rates
- Establishment fees and ongoing fees
- Early repayment options
- Reviews and reputation
Get all your required documents in order ahead of applying. This includes identification, proof of income, bank statements, and expense information.
Finally, select the lender that offers the best overall package and submit your application.
Making The Decision
Getting a quick personal loan can be a good financial solution if used correctly.
Personal loans allow fast access to needed cash for emergency expenses, debt consolidation, or major purchases. As a borrower, that’s good because it means having options when you need them.
But don’t forget this final point. Don’t let speed force you to make a bad decision.
Understand your personal loan options, compare lenders, and choose a loan that matches your budget and goals. The market is very competitive right now and you should use that to your advantage.
Final Thoughts
With digital personal loan lenders capable of processing applications and underwriting decisions in hours instead of days, it has never been easier to get the money you need when you need it.
The key is to play it smart. Know what you need, what lenders want, what mistakes to avoid and which loan option is best for your situation.
If you do that, you’ll get the quick finance you need with minimal stress or regrets.
