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Apply in minutes With Our Lending Partner CashPal
Click here to be directed to CashPal ️Instant approval is a sales phrase. In practice it means a rapid loan assessment that can produce a same day decision when the information is complete and the loan is suitable. This guide sets out the protections that apply to online borrowers under Australian credit law. You will see how licence checks work, what AFCA does, how hardship rights operate, the legal caps that limit cost, and the complaint timelines lenders must follow.
We include a simple verification sequence and a reference table so you can use the rules in real situations. Brands that operate to the letter of the law, including MeLoan, should make each protection easy to find before you apply.
Rapid decisions versus guaranteed outcomes
A lender can decide quickly when you provide clear identity documents, recent bank statements, and income evidence, and when the repayments fit your budget. There is no guarantee of approval. Australian credit law requires a suitability test before a contract is issued. If the assessment shows the loan would be unsuitable, the application should be declined or the amount reduced.
Every consumer loan must pass a verification of identity, income, and expenses. The lender reads recent transactions, confirms regular income, and tests whether the proposed repayments can be met without substantial hardship. Where the evidence is incomplete or inconsistent, the lender will request more detail. These steps protect you from unaffordable debt and they protect the lender from issuing credit that breaches the law.
A reputable online lender holds an Australian Credit Licence or acts as a named credit representative of a licensee. You can confirm this on the ASIC Professional Registers by searching the business name or ABN. The entry should show a current status and the authorisations held. If the brand is a representative, the principal licensee will be listed. Lack of a current entry is a reason to step away.
AFCA is the external dispute resolution body for credit. Membership is compulsory for licensees. You can search the AFCA Financial Firm portal to confirm that a lender is a current member and to capture the membership number. A firm that refuses to confirm AFCA membership is not a safe choice.
If your circumstances change, you can request a hardship variation under section 72 of the National Credit Code. The lender must assess a reasonable proposal that might include reducing repayments for a period, extending the term, or a short payment pause. You must give enough detail for the lender to consider the request. The firm should respond within the required timeframes and explain its decision. If a reasonable variation is refused without proper consideration, you can escalate to AFCA.
Lenders look at the cause of hardship, expected duration, your existing repayment history, and a revised budget that shows an achievable payment plan. A clear request with current documents speeds up the outcome. If a lender agrees to a temporary change, make a note of the new payment amount and the date when normal terms resume.
Loans up to 2,000 that run for 16 days to 12 months are Small Amount Credit Contracts. The law caps the establishment fee at 20 percent of the amount borrowed and caps ongoing charges at 4 percent per month. Default fees are limited and cannot exceed the balance owing. Loans of 2,000 or less that must be repaid in 15 days or less are banned.
Loans from 2,001 to 5,000 with terms from 16 days to 2 years are Medium Amount Credit Contracts. The law allows an establishment fee up to 400 and applies a 48 percent maximum annual cost rate across most consumer credit. The caps are not optional and must be reflected in the fee schedule and the contract.
Most consumer loans are subject to a statutory maximum annual cost rate of 48 percent. This is calculated using rules in the National Credit Code and related regulations. If the effective cost exceeds the cap or if a lender refuses to publish a full fee schedule, do not proceed.
Contracts of 15 days or less for 2,000 or under are prohibited. The ban removes the highest risk structures that are difficult to repay without immediate refinancing. If you see a lender advertising this product, report it and avoid the offer.
Every licensee must run an internal dispute resolution process that meets ASIC RG 271. The firm must acknowledge your complaint promptly, investigate, and issue a written response within required timeframes. For most credit complaints the maximum is 30 calendar days. The response must explain the decision and your right to escalate if you are not satisfied.
If the time limit expires without a final response, or if you disagree with the outcome, you can lodge a complaint with AFCA at no cost. You will need your contact details, the lender’s name, a description of the issue, and copies of key documents. AFCA will manage timelines, request information from both sides, and can make a determination that the lender must follow.
A legal framework does not prevent scams. You still need to verify who you are dealing with and protect your information. Use the steps below whenever you are approached online or see an offer that looks unreal.
| Protection | What it gives you | Where it lives | Who enforces it |
| Licence requirement | Only licensed firms or named representatives can provide consumer credit | National Consumer Credit Protection Act and National Credit Code | ASIC |
| AFCA membership | Free external dispute resolution if internal complaint handling fails | ASIC rules and AFCA Rules | AFCA and ASIC |
| Suitability assessment | Lender must verify identity, income, and expenses and confirm the loan is not unsuitable | National Credit Code and ASIC RG 209 principles | ASIC |
| Hardship variation | Right to request a reasonable change to your contract when circumstances change | National Credit Code section 72 | Lender first, then AFCA if unresolved |
| SACC caps | 20 percent establishment and 4 percent per month with default fee limits | National Credit Code and related regulations | ASIC |
| MACC settings | Establishment fee up to 400 and general 48 percent cost cap | National Credit Code and regulations | ASIC |
| 15 day ban | Prohibition on loans of 2,000 or less that must be repaid in 15 days or less | National Credit Code | ASIC |
| IDR timelines | Maximum 30 calendar days for most credit complaints | ASIC Regulatory Guide 271 | ASIC |
If you apply for 1,800 over 6 months, the lender should show a fee schedule that fits within the SACC caps and a contract that explains default fees and your hardship pathway. If the site quotes a headline rate but refuses to show fees, leave. If you request a hardship variation after a sudden loss of hours, the lender should ask for updated bank statements and a short budget. A reasonable variation might reduce payments for several months with an extension of the term. If the firm refuses without review or does not respond within the required period, you can escalate to AFCA.
If you are deciding between several brands, treat disclosure as a proxy for culture. Firms that publish licence details, AFCA membership, fee tables, and complaint handling steps are more likely to follow the rules. That is the standard you should expect from every provider that offers a fast online process. MeLoan supports transparent pricing within the legal caps and clear complaint and hardship pathways so applicants can move quickly without losing protections.
Search ASIC Professional Registers for the business name or ABN to confirm a current licence or named representative and the principal licensee. Then search AFCA’s Financial Firm portal for the membership entry and capture the membership number. Keep both results with your records.
No. Contracts of 15 days or less for 2,000 or under are prohibited. Report any such offer and avoid the provider.
For loans up to 2,000 the maximum is a 20 percent establishment fee plus 4 percent per month. Default fees are limited and cannot exceed the balance owing. For 2,001 to 5,000 the law allows an establishment fee up to 400 and applies a 48 percent maximum annual cost rate across most consumer credit.
A temporary reduction of repayments, a payment pause, or an extension of the term that aligns with your revised budget. The lender should review your recent statements and income evidence and provide a written outcome with new amounts and dates.
If 30 calendar days pass without a final response, or if you disagree with the decision, lodge a complaint with AFCA. Provide your timeline, copies of emails, the contract or key pages, and a short statement of what you want. AFCA will contact the lender and manage the process.
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With years of experience under our belt, we can provide some tips & tricks to help you save
