We will require your banking details in order to confirm and evaluate your income. Remember that we need this information so that we can determine how much you can borrow and the repayments that you can afford.
An amount that is paid into your bank account or to you on a regular basis. This can be daily, weekly, monthly and so on. If you are receiving cash payments, it is recommended to pay these into your bank account. This will help us to more accurately assess how much you are earning and your ability to repay a loan.
What defines a sustainable income?
A sustainable income is earnings that aren’t going to dry up or disappear in a couple of weeks or months. In other words, an income that you will keep earning, preferably for the entire term of the loan. For short-term contracts or income generation over a short period of time, the terms may be adjusted in order for the loan to be approved.
What is the term of loan?
The term of a loan refers to the duration of the loan how long you need to make repayments for the entire loan amount to be settled. Short-term loans from MyBorrowing generally last anywhere from 4 weeks to 24 weeks (1 month to 6 months). The longer the term (repayment period), the lower the monthly installments will be but the more you will pay in fees and other charges.
It is always recommended to only take out a loan in the amount that you need and choose the shortest repayment period in order to pay the loan off as quickly as possible and avoid additional charges and fees.
- 20% Loan Establishment Fee which will be added to your *principal loan amount. So if you borrow $100, the Establishment fee will be $20. You now owe $120.
- 4% monthly fee that is calculated over the term (repayment period) of the loan. So if you borrow $100, the monthly fee will be $4 multiplied by 6 months which equals $24. You now owe $144.
- $20 for payments that are not made in time. To avoid this penalty, give us a call to make alternative arrangements if you know the funds will not be available in your bank account. We understand the financial pressure of being unemployed and want to prevent having to charge you anything extra.
* The principal loan amount is the amount that you applied for and received without any additional charges or fees added.
How much can you borrow?
As mentioned above, your income will be used to determine the loan amount relative to how much you can afford to repay according to the terms and conditions of the loan agreement. MyBorrowing offers loan amounts ranging anywhere from $500 to $10,000.
However, it is important to remember that it is up to you to ensure that you are able to afford the repayments relative to the income you are receiving while you are unemployed. Use our free loan calculator to estimate the repayments over your chosen repayment period.
Sometimes it is best to work backwards in determining a loan amount that you can afford. Draw up a budget detailing all your expected income and expenditure over your selected repayment period. Deduct your expenses from your income and you will arrive at an amount that is available to pay towards the loan every month. Leave yourself some room and don’t apply this entire amount towards your repayments. Now multiple your chosen repayment amount by the repayment period you have selected and you will have the amount that you should apply for. Remember to include the Establishment and Monthly fee.