Frequently Asked Questions

Our application process explained

Make an application on our website, tell us how much you’d like to borrow and over how many months.

We’ll give you a link to send to your guarantor so they can complete their part of the application.

Once your guarantor has finished their part, we’ll give them a quick call to confirm their details and to arrange paying out the money. We may need to give you a call too, just to finalise everything. We’ll always let you know if and when we can pay out the loan.

We aim to pay out every loan within 24 hours of the guarantor being accepted. We pay the money into the guarantor’s bank account, for them to give to you. This is to protect customers from fraud, by making sure the guarantor is aware of the loan.

How long does it take to get my loan?

If we have all the loan documents signed by both yourself and your guarantor, and have done our phone calls with you both to ensure everyone is on the same page with loan repayment we can get the funds out to you same day or the next business day.

When your guarantor has signed the online agreement, we’ll give them a call to confirm their details. We may need to give you a call too, just to finalize the application. We’ll always let you know when we can pay out your loan.

Some things that could slow your application down are:

  1. If we’re not able to speak to your guarantor when we call.
  2. If your guarantors property documents are difficult to locate.
  3. You’ve applied over a public holiday or weekend, in which case we’ll process your application as soon as we’re back in the office.
  4. We need something additional from you like proof of ID or a different bank statement.

How does the interest work and can I make extra payments?

The most important thing to know about our guarantor loans is that you only pay interest for the time you have the loan, because we calculate our interest daily.

For example, if you borrow $5000 over 36 months but decide to repay the loan in 12 months, you’d only pay interest for those 12 months.

There are no early settlement fees or charges for making extra payments, so you’re free to make as many extra payments, alongside your set monthly repayments, as you like.

How do I ask someone to be my guarantor?

Be honest with them and explain that you want to buy a new car, renovate, pay bills etc. and you don’t have the money right now. Loan on Me can you get you the money you need but you need someone who can vouch for that knows you can make the monthly repayments. Explain they could end up making the payments for you (or can pay out the loan for you) in the event

Can I get a loan without a guarantor?

Loan on Me is a guarantor lender; all of our customers must have a guarantor for us to lend to them. A guarantor is a great sign to us that someone trusts you and that we should too, no matter what your credit score!

A guarantor’s responsibility is to make the loan repayments if the borrower does not. A suitable guarantor is someone who is aged 19-75, has a good credit history with no trouble paying bills in the past, and who can afford to make the monthly payments if you don’t.

Although they do not have to be a homeowner, it may increase the possibility of us accepting them as your guarantor if they do own their own home.

What will you ask my guarantor?

We’ve made our loan process as simple and stress-free as possible for both you and your guarantor.

Once you’ve completed our five minute application, we’ll give you a link for your guarantor so they can complete their part.

When your guarantor has done this, we’ll give them a quick call to confirm their details, check they understand their responsibilities and to arrange paying out the loan.

Why was my guarantor declined?

Don’t worry if your Guarantor was declined, you have still been approved so now you need to simply find another Guarantor and we will apply again (takes a few moments). There are a few reasons why we were unable to accept a guarantor, the most common reason is that their credit score doesn’t meet our criteria.

What does my guarantor do?

The Guarantor will be required to make the monthly payments if the borrower is unable to. It’s important to find the right guarantor who can do this. If on the rare occasion that a payment cannot be made, we will contact your guarantor to make up any arrears on the account. If you pay in full and on time your Guarantor will never be contacted. And remember, if the first 12 repayments are made on time and in full, your guarantor will receive one months’ repayment back as a thank you for being a guarantor.

Who can I ask to be a guarantor?

We find that friends, family or even work colleagues are usually the most approachable. Anyone can stand as guarantor providing they meet the criteria above. It is likely that a person’s decision to stand as your guarantor will be based on their trust in your repayment ability; this is why we recommend choosing someone you know very well. It’s important to discuss the loan application fully with your guarantor, even though talking to someone about your finances isn’t easy especially if you have had problems in the past, however misleading someone into being a guarantor could put your relationship in jeopardy.

What’s the risk?

If the borrower is unable to repay the loan, the guarantor will take the responsibility of making repayments for the arrears. Being a responsible lender, we carry out affordability checks on both the guarantor and borrower to satisfy ourselves that the guarantor can afford the repayment amount alongside all their other current financial commitments. Even if we feel that the loan is affordable, we give the Guarantor the final say- the money will be transferred to the guarantor’s bank account and can be returned if they have any doubts.

Do I have to be employed?

No, we could lend you money as long as you aren’t bankrupt, or have an active consumer proposal, and can afford the loan as well as having enough money left over to live your normal life.

Though you do not need to be employed, you will need a source of income to repay the loan. This doesn’t have to come from a full or part time job; we can accept applicants on benefits, for example.

How do I make a payment or settle my loan?

We’ve made repaying the loan as simple and stress-free as possible.

When we pay out the money, we’ll set up a monthly direct debit and collect your debit card details. This is so you have a backup if the direct debit ever failed, to help ensure the loan doesn’t fall behind.

We promise to never charge you for making extra payments or settling your loan early. This will actually save you money, as you’ll only repay what you borrow and the interest accrued for the time you have the loan.

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