Cigno Loans: What You Need to Know in 2025?

Disclaimer: Monzi is not affiliated with Cigno Australia, BSF Solutions, or the ‘No Upfront Charge Loan Model’. We do not provide or promote any loans associated with Cigno. The information on this page is intended for educational and comparison purposes only. As of May 2024, the Federal Court of Australia has permanently barred Cigno Australia from carrying out any credit activity without holding an Australian Credit Licence.

Cigno Loans, previously recognised for providing quick cash loans through a model involving third-party billing, is no longer operational in Australia. The company, which operated under Cigno Pty Ltd and BSF Solutions Pty Ltd, collectively known as Cigno Australia and BSF, came under regulatory scrutiny for charging high fees and providing credit without a proper licence.

In May 2024, The Federal Court of Australia issued permanent injunctions against these entities, stopping them from engaging in any credit activity unless they obtain a valid Australian Credit Licence. This decision followed findings of unlawful credit practices that affected more than 100,000 Australians.

Cigno Loans became known for high fees and controversial lending practices. Many borrowers reported becoming trapped in debt cycles due to the Cigno Loans model. Even so, some consumers turned to Cigno Loans for quick access to small loans due to the minimal hurdles in the application process.

The Consumer Action Law Centre has been actively assisting affected consumers to challenge unaffordable and potentially unlawful debts linked to ‘Cigno Loans’ practices.

Why Did Cigno Loans Stop Operating?

The closure of Cigno Loans followed a Federal Court ruling and regulatory action by ASIC.

Key issues included:
• Engaging in unlicensed credit activity through the Cigno Loans model
• Charging excessive and prohibited fees
• Using a business structure that exploited legal loopholes
• Collecting over $70 million in fees
• Issuing more than $34 million in loans
• Being subject to enforcement action by ASIC to protect consumers

As a result, Cigno Loans is no longer permitted to offer loans in Australia under its previous structure.

Are Cigno Loans-Style Loans Still Available?

The lending model previously used by Cigno Loans is now legally prohibited. However, Australians may still explore personal loans and short-term loans from licensed credit providers who operate within ASIC’s responsible lending framework.

If you are looking to avoid excessive fees or legal concerns, Monzi’s lender-finder service may help you compare offers from lenders that are properly licensed and follow relevant Australian credit regulations.

How Monzi Helps You Find Licensed Lenders Instead of Cigno Loans ?

Monzi is a lender-finder service, not a credit provider. We may help connect you with licensed lenders who may offer loan products that align with consumer credit law and include clear, upfront fees.

Key features include:
• Soft credit checks, which may not affect your credit score
• Secure bank statement analysis via Illion Open Banking
• No upfront fees or hidden charges
• Fast pre qualification outcomes in real-time
• Options including payday loans, fast cash loans, and other short-term loan types

Monzi may only work with lenders that hold an Australian Credit Licence, unlike the former Cigno Loans operation.

Alternatives to Cigno Loans in Australia

If you’re searching for Cigno Loans alternatives, licensed credit providers may offer:
• Small personal loans with flexible loan amounts
• Emergency cash loans
• Bad credit loan options
• Same-day loan processing, subject to eligibility and assessment

Each lender has their own criteria, loan limits and may carry out a credit check during their decision process.

Frequently Asked Questions – Cigno Loans

Is Cigno Loans still offering loans in 2025?

No. The Federal Court of Australia permanently restrained Cigno Australia and BSF Solutions from providing credit without a licence in May 2024, effectively ending Cigno Loans.

Can I still get a loan like Cigno Loans?

The model used by Cigno Loans is no longer permitted. However, you may explore other short-term loan options from licensed lenders who meet regulatory standards.

Does Monzi offer loans like Cigno Loans?

No. Monzi does not provide loans. We may help you compare loan products from lenders who follow responsible lending practices in Australia.

Are credit checks required for loans similar to Cigno Loans?

Some lenders may carry out a credit check, while others might assess your current financial situation. Monzi cannot confirm whether a lender may or may not perform a credit check.

Can I get short term loans as an alternative?

Yes, short-term loans are available from licensed lenders who follow Australian credit laws. These loans may provide quick access to cash for urgent needs, might be with transparent terms and fair repayment options.

Where to Learn More About Cigno Loans and Safer Lending

Before applying for any loan product, consider visiting the following trusted resources:

Ready to Compare Safer Loan Options Instead of Cigno Loans?

Monzi may make it easy to compare personal loans from licensed credit providers with no upfront charges or hidden fees, and no commitment required.

 

Factor In Costs

You won't use a penny to apply for our lender-finding service, but here's some costs you could expect from a lender

Loan amount

$300 - $2,000

Terms

16 days (minimum)

12 months (maximum)

Costs

20% upfront establishment fee

+ 4% monthly fee

Example

Representative example based on a loan of $1000 over 6 months a borrower can expect to pay a total of $1440.

Disclaimer: Under the current legislation, all Small Amount Credit Contract loan providers don’t charge an annual interest rate. The maximum you will be charged is a flat 20% Establishment Fee and a flat 4% Monthly Fee. The minimum loan term is 16 days and maximum loan term is 12 months. Representative example based on a loan of $1000 over 6 months a borrower can expect to pay a total of $1440.

Loan amount

$2,100 - $4,600

Terms

12 months (minimum)

24 months (maximum)

Costs

47.8% Annual Percentage Rate (APR)

65.85% Comparison Rate p.a.

Example

Representative example based on a loan of $2500 over 24 months a borrower can expect to pay a total of $4,556.88.

The maximum interest rate for a Medium Amount Credit Contract is 47.8%. Comparison Rate 65.85% p.a. The maximum loan term is 24 months. Representative example based on a loan of $2500 over 24 months a borrower can expect to pay a total of $4,556.88. WARNING: This comparison rate is valid only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate with the lender that finances your loan. Credit criteria and terms and conditions apply.

Loan amount

$5,000 - $15,000

Terms

12 months (minimum)

24 months (maximum)

Costs

47.8% Annual Percentage Rate (APR)

47.8% Comparison Rate p.a.

Example

Representative example based on a loan of $10,000 over 36 months a borrower can expect to pay a total of $18,995.04.

This is an estimate only and the comparison rate based on the example information provided. Other fees, costs and charges are not included. This calculation is not an offer for credit.The maximum interest rate for a Personal Loan is 47.8%. Comparison Rate 47.8% p.a. The maximum loan term is 24 months. Representative example based on a loan of $10,000 over 36 months a borrower can expect to pay a total of $18,995.04. WARNING: This comparison rate is valid only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate with the lender that finances your loan. Credit criteria and terms and conditions apply.