Cash-strapped Australians have a new alternative to predatory payday loans and sky-high interest rates after Good Shepherd Microfinance launched Speckle, a short-term cash loan.
One in five Australian households have used payday loans in the past three years as an increasingly casual workforce, rising cost of living and low wage growth pushes more families into financial stress.
Speckle is an online cash loan backed by NAB for amounts up to $2000.
Good Shepherd Microfinance CEO Adam Mooney it is a low-cost alternative to traditional payday loans.
“In most cases, Speckle loans are up to 50% cheaper than other small cash loans. Most lenders charge the maximum fees allowed by law.”
Speckle fees include a 10% establishment fee and 2% monthly fee compared to the market norm of 20% and 4%.
Repayment options range from three months to one year, and can be repaid early with no extra fees.
Loan applicants must be over 18, earn more than $30,000 a year (not inclusive of government benefits), and can’t have had two or more small amount credit contracts in the past 90 days. Ineligible applicants are referred to other financial support.