7 Crucial Points to Check Before Applying For Online Loans

Crucial Points to Check Before Applying For Online Loans

Applying for a loan online can feel overwhelming, but we’re on hand to make the process hassle-free.

From getting your paperwork ready to have a repayment strategy in place, look no further for the top 7 things to consider before filling out your application form.

Check that you qualify for a loan

Before applying for a loan, you need to make sure that you meet the basic requirements laid out by banks and financial companies.

To help you get started, below listed are the common conditions you need to tick off below:

  • You are 18-years-old or over
  • You’re a permanent resident of Australia or hold an eligible visa
  • You can provide details of your financial status
  • You are employed or receive regular income (this includes government benefits)
  • You are not undergoing the process of bankruptcy

Get to grips with the basics

Applying for loans can prove tricky for first-timers, so we’ve decoded the lingo to help you get to grips with things.


This is the amount of money you are borrowing and have agreed to pay back.


This is how long the loan will last, and the time period you have to pay the amount borrowed back.

Interest Rate

This is the amount of money the lender is charging you for taking out the loan.

Compare loan terms 

Every loan has a different term length, so it’s important to compare the available options. For instance, Sunshine Loans offers a wide range of choices, from fast cash solutions to short-term options.

The length of your loan will determine repayment costs and overall interest.

Compare interest rates

In most cases, you want to opt for a loan which offers the lowest interest rate so that you can make repayments without having to worry about any additional costs. Before applying for a loan, make sure to shop around to ensure that you choose one best suited to your income, budget and needs.

Compare additional fees

You may also have to foot additional fees when applying for a loan.

We’ve listed common fees to look out for below:

  • Establishment fees
  • Early repayment fees
  • Early exit fees
  • Monthly loan fees
  • Missed payment fees

Get your paperwork in order

Applying for a loan may feel like a headache but ensuring that your paperwork is in order will make the process a whole lot easier. In order to gain a bigger picture of your finances, you’ll be asked to provide documents which prove your eligibility to borrow a loan and your ability to make regular repayments.

At Sunshine Loans for instance, all applicants must receive regular income.

We’ve listed the paperwork you’ll need to apply for a loan below:

  • Personal identification
  • Proof of income
  • Bank statements

Have a payment strategy in place

Before hitting the apply button, it’s important to make sure that you have a repayment strategy in place.

Create a budget you can stick to

Planning a realistic budget is the best way to stay on top of loan repayments.

If you’re already fretting over giving up your daily morning coffee, Sunshine Loans has a helpful budget planner which will give you a better understanding of how you’re spending your paycheck each month – the first step to achieving your overall goal.

Make room for extra loan repayments.

If you have the disposable income to hand, you’ll soon be able to make extra repayments – a great way to pay off your loan even faster. But before you rush into anything, make sure there isn’t an early exit fee in place.

Taking out a loan isn’t a decision to take lightly, so make sure to consider the pros and cons beforehand. If you’re still unsure, it’s a good idea to seek advice from friends and family.