Loans – Monzi Gives The Low-Down On Everything You Need To Know

Loans seem to be available everywhere, for every situation. With all this choice, however, often comes a lot of confusion. Luckily, Monzi is here to explore what options are available to borrowers.

How Do Loans Work?

In general, when you apply for credit, you will nominate an amount of money you wish to borrow as well as your repayment term. If you are approved, you will receive the amount of money you applied for. Depending on the loan, you may receive everything in a lump sum or instalments. From here, you will make repayments as per the agreed-upon schedule.

What Is Security?

Security is simply an asset that is used as collateral against the loan. These assets often come in the form of a vehicle or property. If the borrower is consistently unable to afford the repayments on their loan, the lender has the right to repossess the collateral, and sell it to recoup their losses.

Conversely, some lenders also offer unsecured credit. Unsecured credit contracts do not require an asset to be attached as security. Therefore they pose more of a risk to the lender.

Personal Loans Explained

These, essentially, help borrowers cover a short-term or long-term need for finance. In other words, they can be used to cover a huge number of different personal expenses. Personal loans, generally, have short repayment terms ranging anywhere from 1 to 5 years. In addition, they may require security to be attached.

Monzi is a lender-finder, that is able to match you with a lender who may be able to offer a personal loan of up to $10,000. Additionally, even if you have poor credit, or are receiving Centrelink, Monzi may still be able to find you a lender.

Moreover, a number of factors determine the interest rate on your personal loan. In general, most personal loans come with a fixed rate.

How Do Mortgages Work?

Mortgages, are the typical way that Australians are able to afford the cost of a home. Generally, you will first need to save for a deposit on a home. Keep in mind, the more you save for a deposit, the less you will need to borrow from the bank and repay.

Next, you will apply for a mortgage and (hopefully) get it approved. If the lender approves the loan, you will be able to look for a property within a set budget. Once you have decided on the amount, you’ll be able to finalise it with your lender. Finally, you will use the property as security against your mortgage. Therefore, if you fall behind your repayments, the lender has the right to sell your property, in a bid to get its money back.

What is a business loan?

A business loan is a loan intended specifically for the costs of running a business. Your borrow power is determined by a number of factors. For more information, head to our page on business loan calculators.

How Do Car Loans Work?

The purpose of a car loan is to make buying a car accessible to more people. Therefore, if you do not have enough savings to buy a car outright, you could apply for credit and instead, pay monthly instalments.

This type of credit may be offered by financial institutions, as well as the car dealerships themselves. This type of credit, generally, has repayment periods of around 1 to 5 years. Attaching security is the most common way to get a car loan. Often, the car your purchasing is the collateral.

Get an idea of your car loan borrowing power here.

Moreover, it is important you compare different lenders to find the best car loan rates for your situation.

You can often use a car loan to purchase things like boats or jet skis.

Difference Between Construction And Home Loan?

They are two different loan structures. This is due to the fact that construction loans are designed for people who are building a home, as opposed to purchasing an existing property.

Additionally, credit for construction often has a progressive draw-down model. In other words, borrowers can increase the amount they are borrowing, as needed. The amount available to the borrower will be partly based on the value of the property upon the completion of the construction.

How Do I Apply For A Renovation Loan?

If you are looking to renovate your house, but need a cash injection, there are a few options available to you.

  1. Construction loan: A construction loan is based on the final (post-renovation) value of your property. Additionally, you will be able to draw down funds progressively as the renovation-related expenses occur.
  2. Personal Loan: If you have smaller renovation costs, you could apply for a personal loan. You are also able to apply for both secured and unsecured finance. Monzi is a lender-finder that could match you with a lender offering up to $10,000.
  3. Credit Card: Credit cards can be a convenient way to cover renovation costs due to most businesses accepting credit card payments both over the counter and online.

What Is A Debt Consolidation?

A debt consolidation loan is an option for making multiple debts more manageable. In short, debt consolidation settles existing debts (personal loan, credit card etc.) so you only have one, more manageable repayment.

Having one debt consolidation loan can often have many benefits. Usually, having one debt to remember is much more manageable than multiple. Additionally, you may even save money by having less interest or fewer fees to pay.

Check out our page on credit card debt consolidation for more information.

How Do Interest Only Loans Work?

Most credit is typical principal and interest. This means your repayments reduce the principal and cover the interest for the period of the loan. With an interest-only loan, repayments only reduce the interest on the loan, during the interest-only period. Therefore, there is no reduction in the principal. Generally, this is for a predetermined period. Once this period has finished, it changes to a principal and interest loan.

Keep in mind, however, that interest-only credit usually refers to mortgages. As Monzi specialises in finding lenders offering personal loans, you are therefore unlikely to come across an interest-free loan when using Monzi.

Is It Possible To Get Guaranteed Loans No Matter What?

Consumers should be wary of online lenders that promise guaranteed approval no matter what. Any lender that does not make reasonable enquiries about your financial situation, nor make some sort of assessment on your application, is not meeting their responsible lending practices.

Therefore, if you see lenders offering guaranteed payday loans no matter what Australia, you should be very cautious.

Also known as cash advances, these loans have also been characterised by short, inflexible repayment terms.

You may not match with payday lenders when using Monzi’s lender-finder service. Instead, we’ll try to pair you with a lender offering personal credit.

In addition, while our lenders cannot guarantee approval, they can promise a fair assessment. So, even if you have poor credit, or are receiving Centrelink, consider applying.

I Have Bad Credit – Can I Get A Personal Loan?

In short, yes! While having bad credit may make it more difficult to be approved for a loan from the bank, there are still options available to you. Bad credit personal loans are available from certain lenders. You will, however, still need to provide evidence of a regular income, to prove you will be able to repay the loan. Additionally, some lenders may regard regular Centrelink payments as a form of income.

Ultimately, it is important you compare different personal loan lenders yourself.

How Do I Check My Credit Score?

Two of Australia’s largest credit reporting agencies are Experian and Equifax. You can, therefore, access a copy of your credit score through these institutions. It is important to understand what your credit score is, as it may affect the interest you pay on your loan.

Below is a breakdown of credit score ranges from both Experian and Equifax.

Credit BandExperianEquifax
Excellent800 – 1,000833 – 1,200
Very good700 – 799726 – 832
Good625 – 699622 – 725
Fair / Average550 – 624510 – 621
Weak / Below Average0 – 5490 – 509

Is It A Good Idea To Pay My Personal Loan Out Early?

There are both benefits and costs to paying your loan off early. Therefore, before you decide to repay your loan early, there are certain things you should consider.

Benefits Of Paying Your Personal Loan Off Early:

  • Save on interest: Paying your personal loan early may, in the long run, save you money on fees and interest. Depending on how much of your loan you repay early, you may save hundreds of dollars.
  • Access more cash: Once you have repaid your loan, you will no longer have to budget for your regular repayments. Therefore, you’ll have more money available after each paycheque.
  • Qualify for another loan: Lowering your debt-to-income ratio may help you qualify for more attractive fees and terms for future credit. Additionally, some lenders may not approve your application if you already have multiple credit contracts at once.

Most personal loans have an interest rate in Australia. The quicker you pay your loan off, the less you pay in overall interest.

Before Paying Your Loan Off Early:

Before you begin paying your loan out early, check if there are any early repayment fees associated with your loan. Some lenders may charge you a fee for paying your loan out early. If this is the case, they should have been outlined in your contract. Therefore, if you are unsure whether or not there are early repayment fees, you will need to get in contact with your lender directly.

Consider using an extra repayment calculator.

How To Pay Your Loan Off Early:

You will need to ask your lender to increase your repayments. This can be done by either increasing the regular amount you pay each cycle or increasing the repayment cycle. In other words, changing your repayment dates from monthly to fortnightly, or fortnightly to weekly repayments.

Again, certain personal loan repayment calculators may help you make a decision.

Introducing Monzi

At Monzi, we do the searching for you. Therefore you don’t need to waste time hunting down hundreds of lenders when can just apply with Monzi and we’ll try to get you connected. In short, we may be able to find lenders when you need them most.

Additionally, you can bet we do it quickly! We’re 100% online, so we don’t mess around with maddening paperwork or lengthy applications. If you’re on the hunt for a lender, we can find you a lender that can offer personal loans, fast cash, bad credit loans, or small loans.

woman dancing in confetti after being approved for loans

Who We Are

We are Monzi, and what we do is pretty simple; we find lenders. That’s it. No fancy jargon, just a quick and simple lender-finding solution.

After all, we know that time is money, and we want to save you some by finding a lender that can help. Monzi is ready to help Aussies find a lender that can offer them the personal loan they need when they need it. One application, one lender-finder, one lender.

Trust Monzi to help you find the lender you need. Therefore, follow the links to learn more about bond loan, emergency cash loans or travel loans.

Who is eligible for cash loans?

At Monzi, we believe all Aussies are entitled to quick finance when they need it, however, we do have a few requirements to check off before applying for our lender-finding service:

  1. Must be over 18 years old.
  2. Be an Australian resident or permanent resident.
  3. Be receiving a regular income into a personal account for at least 3 months.
  4. Have an active mobile number and email address.

So, before you apply for our expert lender-finding service, make sure you tick off all these requirements. If so, you’re eligible to use our lender-finder service. So, whether you’re looking for lenders offering small loans, or larger secured credit, Monzi may be able to help. Additionally, head on over to our costs page to get a very general idea of what you could expect to pay.

Can I apply Australia-wide?

Absolutely! The beauty of our 100% online model means consumers can apply from anywhere in Australia.

So if you live in Adelaide and need a few extra dollars, you can apply.

Have an urgent expense that needs covering in Darwin? Guess what, you can apply.

In short, you can apply from anywhere as long as you have an internet connection.

What To Have Handy When Applying

Applying with Monzi is pretty simple. No complicated steps, with piles of paperwork, just one application you can complete in minutes. Therefore, to help speed the process along, make sure you have these details handy when applying:

  • Personal contact details e.g. mobile number and email address.
  • The reason for your loan.
  • Internet banking login details.
  • MyGov details (if applicable).
  • Employment info.

In short, you can complete our application in minutes, with zero paperwork required. Just enter in your details, and we’ll handle the rest!

Apply With Monzi In Three Easy Steps

Using our lender-finding service is a breeze. After all, the entire lender-finding process can be completed in three steps! So, if you’re in need of quick cash, here’s how you can get started:

1. You Apply Today

To apply with us today and to try and find a lender, simply complete our application form. You don’t need print or sign any paperwork, simply just fill in a few details and we’ll get to work finding you a lender.

To begin, scroll up to our loan repayment calculator and select the amount you wish to borrow and for how long. Then, once you’re happy with your proposed loan terms, click the Apply button! Additionally, keep in mind that all the costs on our loan calculator are simply examples and all costs are subject to individual lenders.

2. We Find You A Lender

Next, after you submit your application, we get to work trying to find you a lender that might offer you fast cash. Depending on when you apply, our automated system may be able to scan through hundreds of different loan products in no time.

3. Meet Your Lender

If we find you a lender, then we’ll let you know. Finally, your new lender will be in touch with you. They’ll then conduct their own assessment of your application. If you’re approved, they should send through a digital loan contract.

If you’re, however, unhappy with your lender or loan contract provided, you are under no obligation to accept the contract. Additionally, there are no fees applied if you decide to reject the option to meet your lender from Monzi.

So, why wait? Apply online today, just scroll up to get started.

Why Choose Monzi?

Excellent question! Well, we just happen to know a few reasons:

  • By Aussies, for Aussies: We’re a proud Australian lender-finder that has already helped thousands of everyday Aussies all over the country. With this in mind, we have a great customer support team ready to answer any and all questions you may have. Therefore, if you need anything, don’t hesitate to contact
  • We’re 100% free: Our lending service is always 100% free. So, regardless if you use the lender we find for you or don’t, you’ll never pay a cent.
  • We make finding a lender simple: Finally, Monzi understands finding a lender online can often feel time-consuming and confusing. Therefore, our service makes life easier. In short, we’ll do the legwork, so you can get back to doing what you do best.

Secured Data

In this day and age, cyber-security is as important as keeping your doors locked. With this in mind, we’ve made the security of your data and information one of our top priorities. That’s why we’ve teamed up with security giants McAfee and Comodo, to ensure your data is always safe and secure.

Additionally, if you’re looking for more information about how we access and use your information, you can find them on our policy.

Monzi’s Loan Calculator

You are able to find our loan calculator at the top of this page. In short, the loan calculator allows borrowers to get a very general idea of what the cost of their loan may look like. Keep in mind, however, that we are only the lender-finder, and therefore cannot guarantee what costs may be associated with your loan. Therefore, use our loan calculator as a rough guide, as costs may vary lender to lender.

Simple Repayments

We find smart lenders. Just like our service, we want your repayments to be easy. That’s why we find lenders that can offer easy repayments. How you may ask? If a lender approves your loan, they’ll most likely set up a direct debit with your nominated bank account. So, when your repayment due date rocks up, the funds will be transferred from your account automatically. Simple, right? No need to set hundreds of reminders only to forget to make your repayments. Just make sure you have enough funds in your nominated account.

What If I Have Bad Credit?

If you have bad credit, don’t sweat it, just apply and we’ll do our best to find a lender that can offer personal loans for bad credit. We cannot guarantee that the lender we find won’t conduct a credit check, however, don’t let that deter you from using our lender-finding service. The lenders we find may look at more than just your credit score. They can also look at your current relationship to see if you’re eligible for a loan.

At Monzi, we’ll do our best to find you a lender that can help, bad credit and all. So, don’t let a pesky financial mishap stop you from potentially finding the lender you need through Monzi.

Will You Conduct A Credit Check?

As the lender-finder, Monzi will not conduct a credit check on your application.

The lender we pair you with, however, may perform a credit assessment on your application. In short, we cannot guarantee whether or not the lender we pair you with will conduct a credit check.

What If I Receive Centrelink Payments?

Whether you have bad credit or are receiving Centrelink payments, we’ll do our best to find you a lender that can offer fast cash. The lenders we find may be able to classify Centrelink payments as regular income as long as you’ve been receiving them for at least 3 months. So, if you are receiving Centrelink, don’t stress it, just apply today and we’ll do our best to find you a lender that can offer credit contracts for Centrelink customers.

Unsecured Or Secured?

At Monzi, we may be able to find lenders offering two types of credit contract; secured and unsecured personal loans. But you may be wondering what the difference is. Don’t worry, we don’t like our customers to be in the dark, so we’ll tell you:

Unsecured – personal loans that are not secured by equity, such as a car, motorbike, boat or caravan. Unsecured loans may be a great option for borrowers who don’t have a vehicle registered in their name.

Secured – personal loans that are secured by equity, such as a car, motorbike, boat or caravan. Secured loans are typically available over $2,001.

So, whether you’re looking for secured or unsecured credit, just scroll up and get started with Monzi’s lender-finder service in minutes.

Let’s Be Friends

If you’re ready to get started with Monzi, simply click the apply now button and you’ll find yourself at our loan calculator. If you have any questions about our lender-finding service, don’t hesitate to contact our team of lender-finding specialists at

Want more? Great! Stay in touch on Facebook, Instagram, Twitter and Pinterest.

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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


12 months


20% upfront establishment fee

+ 4% monthly fee


Loan Amount of $1,000 over 6 months repayable weekly (25 weekly repayments). $1,000 (Principal Amount) + $200 (20% Establishment Fee) + $240 (fees based on 4% per month over 25 weeks) = $1,440 total repayable in 25 weekly installments of $57.60.

Under the current legislation, most small personal loan providers don’t charge an annual interest rate (you’ll know this as an APR) %. The maximum you will be charged is a flat 20% Establishment Fee and a flat 4% Monthly Fee. The maximum comparison rate on loans between $300 and $2000 is 199.43%. This comparison rate is true 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

Loan amount

$2,001 - $4,600


13 months

24 months


48% annual percantage rate

67.41% comparison rate p.a.


Loan Amount of $3,000 over 18 months repayable weekly (78 weekly repayments). $3,000 (Principle Amount) + $400 (Establishment Fee) + $1,379.06 (reducing interest) = $4,779.06 total repayable over 18 months with weekly installments of $61.27.

The Interest Rate for Secured Medium Loans is 48%. The Typical Comparison Rate is 67.41% p.a. WARNING: This comparison rate is true 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. Click here to see a worked example.

Loan amount

$5,000 - $10,000


13 months

24 months


21.24% annual percantage rate

48% comparison rate p.a.


Loan Amount of $10,000 over 24 months repayable weekly (104 weekly repayments). $10,000 (Principle Amount) + $5,577.12 (Interest) = $15,577.12 total repayable over 24 months with weekly installments of $149.78.

The Interest Rate for Secured Large Amount Loans is 48%. Maximum Comparison Rate is 48% p.a. WARNING: This comparison rate is true 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. Click here to see a worked example.