Loans under $5000 – What Are Your Best Options?

There are many ways to get a short term loan under $5000. Understanding your options when borrowing from credit unions can help you make the best choice for your financial circumstances.


If you’re unemployed, you can read about how to get a short term loan if you’re unemployed here. If you’re a pensioner, find out the best loan options for pensioners here.


Your credit rating

The first thing to consider before applying for a small loan is your credit rating. A good credit rating can open up better options for borrowing and can help you negotiate a lower interest rate. If you have a good credit rating, you can obtain a loan from major banks and credit unions that offer a longer repayment period and significantly smaller monthly repayments that can be stretched out over a few years.


For bad credit borrowers, online lenders and payday loans might be the better option but carry much stricter repayment policies which is usually limited to a maximum of two years, and much higher interest rates which means your repayments will be significantly higher.


Good credit unsecured personal loans under $5000

If you have a good credit rating, below are some unsecured loan options offered by major financial institutions.


Lender Minimum loan amount Repayment period Interest rate Fees
Westpac unsecured personal loan $4000 1-5 years 14.69% (variable) Application fee: $150

Monthly service fee: $10

St George unsecured personal loan $3000 1-7 years 14.74% (variable) Application fee: $195

Monthly service fee: $9

Aussie unsecured personal loans $3000 1-7 years 12.99% (variable) Application fee: $199

Monthly service fee: $10

Latitude secured personal loan $3000 2-7 years 12.99% (fixed) Application fee: $250

Monthly service fee: $13

IMB unsecured personal loan $2000 1-5 years 11.69% (fixed) Application fee: $199

Monthly service fee: $0


Bad credit

Most independent financial lenders still allow you to borrow with a poor credit rating if you can provide proof of your capacity to repay the loan. This may include a close assessment of your income and financial situation.


If you’re looking for an unsecured short term loan under $5000 from online lenders, there are two types of loans to understand- small and medium sized loans.


Small loans

Loans less than $2000 fall under SACC (Small Amount Credit Contract). SACC loans are small unsecured personal loans that have a loan term of 16 days to 1 year. SACC loans can only charge a maximum monthly fee of 4% of the principal loan amount and a maximum loan establishment fee of 20% of the principal loan amount.

Medium loans

Medium loans or MACC (Medium Amount Credit Contract) loans are between $2000 and $5000 with a repayment period between 16 days and 2 years. Medium loan lenders can charge a one off establishment fee up to $400 and a maximum annual interest rate of 48%.

No credit check lenders

When dealing with no credit check lenders, make sure the lender is following ASIC regulations and work with you closely to assess your ability to repay the loan.


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