Ferratum is an Australian financial service provider offering short-term or payday loans to eligible customers. These loans provide emergency cash to people who need it most.
If you are interested in obtaining a Ferratum loan, this guide will help you understand the application process and the risks associated with these types of loans.
Ferratum loan features
Ferratum offers loans of $500 to $1,900 with repayment terms of 3 to 12 months. The application process is completely online and automated, with an immediate response provided to your application.
Here are some of the features of a Ferratum personal loan:
- Online approval: The online application process is simple and offers immediate approval.
- Local customer service team: Ferratum offers in-house, local support for customers who need to talk to someone about their loan.
- Borrow what you need: Loans starting from $500 are available, and approval can take just a few minutes.
How to apply for a Ferratum loan
Applying for a Ferratum loan is a simple and straightforward process. Here’s what you need to do:
- Visit the Ferratum website: Go to the Ferratum website to apply for a loan.
- Check your eligibility: Make sure that you are over 18 years old, earn a regular income, and are an Australian citizen or permanent resident.
- Fill in the online application form: Provide your personal details and bank information on the online application form.
- Wait for the loan decision: Ferratum will review your application and provide an immediate decision.
Ferratum loans FAQs
Here are some frequently asked questions about Ferratum loans:
What is the maximum amount I can borrow from Ferratum?
Ferratum loans range from $500 to $1,900. The amount you can borrow may depend on your income, expenses, and credit history.
Ferratum will evaluate your application and determine the maximum amount you can borrow.
What is the repayment period for Ferratum loans?
The repayment period for Ferratum loans ranges from 3 to 12 months. Borrowers can choose the repayment period that suits their financial situation.
Ferratum offers flexible repayment options, and borrowers can pay off the loan early without incurring any additional fees.
What are the fees and charges for Ferratum loans?
Ferratum charges a 20% establishment fee of the borrowed amount plus 4% of the borrowed amount each month. For example, if you borrow $1,000, the establishment fee will be $200, and the monthly fee will be $40.
The total fees and charges for a $1,000 loan over 6 months would be $440. It’s essential to consider the fees and charges before applying for a Ferratum loan.
How long does it take to get a loan from Ferratum?
Ferratum’s application process is entirely online, and borrowers can receive an instant response.
If your loan is approved, Ferratum will transfer the funds to your bank account on the same day or the next business day, depending on your bank’s processing times.
What are the eligibility criteria for Ferratum loans?
To be eligible for a Ferratum loan, you must meet the following criteria:
- Be over 18 years old
- Be an Australian citizen or permanent resident
- Have a regular income
- Have an active mobile number and email address
- Have an internet banking account
How do I repay my Ferratum loan?
Ferratum offers flexible repayment options, and borrowers can choose to make repayments weekly, fortnightly, or monthly.
Ferratum will set up a direct debit from your bank account, and the repayments will be automatically deducted on the agreed dates.
Borrowers can also make additional repayments or pay off the loan early without incurring any additional fees.
Risks of payday loans
Before you apply for a payday loan, it’s important to understand the risks. Here are some of the risks associated with payday loans:
- Unaffordable repayments: Payday loans are an expensive way to borrow money and should only be used as a last resort. Be sure to check the size of each repayment and ensure you can pay it on time.
- High rates and fees: Rates and fees on payday loans are high, so be sure to check that your lender is not charging more than ASIC allows. Also, check what you would be charged if you are late on a payment or if you default on the loan altogether.
- Unreputable lenders: All Australian lenders should be accredited by ASIC. Check for a credit license on the ASIC Register and ensure that the lender is easily contactable.
- Impact on credit score: Every loan application shows up on credit reports. While lenders might not consider credit history, applying for lots of loans within a short period can have a negative impact on your credit score in the future.
Conclusion
Ferratum offers short-term loans that can be helpful for people experiencing financial emergencies. The application process is entirely online and automated, and borrowers can receive an instant response.
Ferratum offers flexible repayment options, and borrowers can choose the repayment period that suits their financial situation. However, it’s essential to consider the fees and charges before applying for a Ferratum loan.
Payday loans are not a long-term financial solution and should only be used in case of an emergency. If you’re struggling financially, it’s best to seek free financial advice from a professional.
