Uncovering the myths and facts about small loans
Did you know that 3 million Aussies – that’s around 16.9% of the adult population – don’t have ready access to credit from the banks? That means almost no access to credit cards, personal loans, car loans and more, leaving many people high and dry and without access to some extra cash when they’re hit with unexpected expenses.
There’s a really big need for the small loans industry, to help fill this gap and take the anxiety and stress out of making ends meet for many Australians and their families.
City Finance proudly support this and recognise the need many Aussies have for these small loans. We’re proud to be a part of a wider, responsible lending community, and our CEO Andrew Child is a Director of the National Credit Providers Association (NCPA), promoting responsible consumer lending.
Did you know?
The small loans industry is responsible, highly regulated and provides a crucial service to our economy, helping millions of Australians when the banks won’t.
Forget the myths – here’s the facts:
Myth: Most people who take out small loans are very young people or vulnerable people on Centrelink.
Fact: The average small loan customer is employed, male, in his mid-30s. They’re normal, everyday people just like you!
Myth: Small amount loans is just another term for payday loans.
Fact: There’s no such thing! ‘Payday loans’ – where lenders provided short term cash which was then paid back in full, with interest, on your next pay day – no longer exist. They were abolished by the federal government in March 2013. Small amount loans are safe, responsible and highly regulated.
Myth: People can just keep applying for small loans and get sucked into a debt spiral.
Fact: There are special laws for an individual having two or more small amount loans in 90 days. Responsible lenders like City Finance are extra careful to assess if an applicant can afford a loan under certain circumstances without causing hardship.
Small Loans, Big Need aims to uncover myths and facts like these about small loans, and start an open and honest discussion their true nature and the big need that exists for them.
Still got questions?
At City Finance we’re here to listen. We’re here for you through life’s ups and downs, specialising in small loans to keep things manageable. Pop into your local branch or give us a call today, we’d love to hear from you.