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How to get Ferratum loans, Pros and Cons, and How to Repay.

Ferratum is a short-term loan provider in Australia that gives loans between $500 to $1900 to eligible Australian customers for 30 days to 12 months. This type of loan is affiliated to Ferratum Group which operates in over 25 countries.

With a Ferratum loan, you can obtain emergency funds to solve your immediate needs. So, if you are interested in getting a Ferratum loan, you are on the right page. In this article, I will guide you through the application process, explain the pros and cons, and discuss the potential risks involved.

The Key Features of Ferratum Loans

The Ferratum loan is a short-term loan that offers $500-$1,900 with a repayment period of 3-12 months, distinct from the typical payday loan we are all used to. Below are some of the key features that come with the Ferratum loan.

  • The application process is completely online.
  • The loan application evaluation does not involve conducting a credit check on the applicant.
  • Approved loans are deposited directly to the borrower’s bank account.

How much does the Ferratum Loan cost in Australia?

It’s very important to be aware of the fees associated with a loan application, to be on the safe side. The Ferratum loan comes with a fixed 20% origination fee on all loans, regardless of the amount you borrowed. Additionally, a monthly fee of 4% is been added which is the maximum that is allowed by Australian law for loans under $2,000.

The table below shows the amount that borrowers can expect to repay in total. (Credit to https://www.vivapaydayloans.com.au/)

Loan Type Loan Amount Repayment Period Total Repayment
Plus Loan Lite $500 5 Months $700
Plus Loan Lite $1,000 5 Months $1,400
Plus Loan Lite $1,500 6 Months  $2,160
Plus Loan Lite $1,900 6 Months  $2,660

It’s important to note that Ferratum may apply additional charges if there is a default in payment or you request for payments to be rescheduled. Below is how you will be charged if there is a delay in your payment.

  • Dishonor fee: $55
  • Missed payment: $55
  • Collection transfer: $47
  • Notice of default: $10/notice
  • Fee for management of debt: $50

Pros and Cons of Ferratum Loans

Here is an overview of the pros and cons of Pros and Cons of Ferratum Loans.

Pros
  • Fast and completely online application process available 24/7
  • Quick turnaround time for loan approvals
  • Accepts applicants with a bad credit rating
  • Available to Centrelink borrowers
Cons
  • It comes with outrageous charges

What are the eligibility criteria for Ferratum Loans?

  • Be over the age of 18
  • You must be an Australian citizen or a permanent resident of Australia.
  • Have a regular source of income
  • You must possess a valid mobile number and email address.

How to Apply for a Ferratum Loan

Applying for a Ferratum Loan is Straightforward; here is how to apply.

  • To begin with the application process all you need to do is to visit the Ferratum Loan website Which is (ferratum.com.au).
  • Next, click on the apply button which is located at the top right corner of the screen.
  • Now, fill in the necessary information being asked.
  • Wait for a while, while Ferratum reviews your application.
  • Once the is application reviewed you should be able to see your funds being reflected in your bank account.

How do I Pay back my Ferratum Loan?

Ferratum has a flexible repayment option, which you can choose from. You don’t have to do anything Ferratum will set up a direct debit from your bank account and your loan repayment will be automatically deducted.

Is Ferratum Loan Legit?

Yes, but recently the Federal Court has found that Ferratum Australia Pty Ltd (in liquidation) charged prohibited fees and overcharged customers on small amounts of credit contracts. It also found that Ferratum had an inadequate system for calculating, recording, and monitoring early payout amounts. To know more about this, click on this link.

Frequently Asked Questions (FAQs) on Ferratum Loan

What is the Maximum amount I borrow from Ferratum?

Ferratum offers a loan option to its customers ranging from $500 to $1,900.

What is the repayment period for the Ferratum Loan?

The repayment period for Ferratum is 3 to 12 months depending on the type of loan you choose.

Does Ferratum provide loans to those with a bad credit score?

Yes, Ferratum does not consider credit scores. Instead, they evaluate recent financial history to assess affordability.

Can I have multiple loans from Ferratum at the same time?

No, Ferratum only allows one outstanding loan per applicant at a time.  

Conclusion

Ferratum Loans Australia offers a fast and convenient solution for Australians in need of quick funds to cover urgent expenses. With a completely online application process, quick approvals, and no credit checks. However, it is very important to consider its charges before seeking a loan on Ferratum.

It is important to remember that payday loans are meant to be used only for emergency purposes and should not be considered as a long-term financial solution. It is recommended that you borrow wisely and seek the advice of a financial professional.

David
David
Tech enthusiast, Content Writer, Gadget lover, Web Designer and a Chelsea fan. Passionate about all things technology. You connect with me on Facebook and Twitter
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