What is a small loan?

We refer to small loans as amounts less than $600 and are usually repaid within 6 weeks. If you need to borrow more than this, try Acorn Finance who lend up to $5000, but you will need security to borrow this amount. If you have perfect credit history, your best option for a small loan is to get a credit card or bank overdraft - their costs are cheaper. Credit cards are more convenient because they can be used at most retail outlets. However, the problem with credit card borrowing only arises if you don't pay off the outstanding balance each month. Over a long period, you end up paying a lot of interest. That's where a short term small loan can save money, even if the interest rate is higher than a credit card.

 

Don't just look at the interest rate.

Working out how much a loan will cost can be complicated. You need to take into account the amount borrowed, the fees charged, the interest rate and how long the loan is for (term). A short loan at a higher interest rate maybe cheaper than a longer loan at a lower interest rate. The best way to compare is to look at the total amount to be paid over the term of the loan. The law in New Zealand requires all lenders to provide this information to borrowers before they sign up. The Little Loan Shop has a Loan Calculator to show you what the repayment options are and how much you will end up paying back in total. It pays to shop around on the web to find the company that offers the best terms and conditions.

 

It's worth reading the section on How to get a loan if you are thinking about borrowing from the Little Loan Shop. This will explain the process involved and what is needed. One good feature is once we have approved a loan for you, it's a lot easier to get another loan sometime in the future once your first loan has been repaid

 

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Small Cash Loans

Although the use of small cash loans is sometimes frowned upon they can be a good solution to an urgent need for cash. Concern around getting a small cash loan is mostly unwarranted because they can be obtained quickly and easily and will meet a need without fuss or bother.…