Jacaranda Finance offers quick, same-day loans to Australians looking to borrow up to $25,000 for either a personal or car loan.
The company states that it will lend to customers with a poor credit history as long as they have improved their finances and can show a record of current employment.Â
Jacaranda Finance touts its same-day funds, known as Express Personal Loans, for successful applicants, but this convenience comes at a cost, most notably the high interest rate of between 14.95% to 27.95% depending on the applicantâs credit score. The comparison rate once fees and charges are taken into account is even higher at between 29.30% to 42.80%.
On the positive side, customers can pay the loan off early or make additional repayments without penalty.
Pros
- Can borrow up to $25,000
- Free credit score check and app
- Car loans as well as personal loans
- Can pay off early without being charged
- Offers a line of credit alternative.
Cons
- Extremely high interest rates compared to banks
- Top interest rate may be as high as 27.95%
- Comparison rate range is between 29.30% to 42.80%, indicating additional fees
- Fees which add to the high comparison rate.
Table of Contents
About Jacaranda Finance
Jacaranda Finance was founded a decade ago in Brisbane with the mission to help âcredit-worthyâ Aussies access lump sums in a hurry.
âWe believe that anyone who applies for a loan should be treated with respect and offered a high level of customer service, regardless of their circumstances,â the company states on its website.
The company was founded by CEO, Daniel Wessels, and won an Australian Small Business Champion Award in 2021.
Jacaranda Finance claims its âultra-fast, proprietary built loan processing technologyâ makes it possible to complete an application in five to 12 minutesâalthough this is not guaranteed. While they advertise the speed of their loan processing (âFunds in 60 secsâ), Jacaranda Finance includes a number of caveats on its site that this may not be the case for all customers, especially those filling out applications outside of business hours.
The company offers a free credit score check and app via their site, which also includes a range of personal finance resources and articles.
What Do Customers Say?
Customers of Jacaranda Finance are overwhelmingly positive in their assessment of the company, giving an average of 4.7 stars on ProductReview.
Reviewers spoke of the excellent service and fast turnaround, with one customer stating: âThe interest rates were eye watering but what you would expect from what I felt was my last resort option. But paying early is your best option and hitting the loan repayment hard when you can.â
Itâs worth adding that many of the positive reviews are usually customers who have just had their loan approved, rather than those who have spent up to four years paying it off at a high interest rate.Â
Meanwhile, critics point out that Jacarandaâs rates and fees are âastronomicalâ and others speak of their frustration at jumping through hoops with documentation only to have their application denied.
Loan Types
Jacaranda Finance offers three types of loans plus a line of credit facility:
- Secured car loans between $10,000 and $25,000
- Secured personal loans between $3,000 and $25,000
- Unsecured personal loans between $3,000 and $15,000
- A line of credit known as a FlexiCredit product.
Loan Features
The interest rate youâre charged with Jacaranda is advertised on the site as between 14.95% and 27.95%. Rather than rely solely on a traditional credit check, Jacaranda Finance says that it uses its own score own internal “Edge Score” technology to tailor the rate.
The other main loan features are:
- Fixed rate for the life of the loanÂ
- Loan terms between from 25 months and 48 months
- Extra repayments on the loan for free
- Choice of weekly, fortnightly or monthly payments
- Fees of between $130 to $990 depending on your loan size
- A âBetter Creditâ app to manage your loan and make extra repayments
- Comprehensive Credit Reporting, which may help customers build better credit scores.
In the FAQ section of its website, the company also makes reference to a line of credit option, in which customers borrow up to a predetermined amount but will only pay interest on what is spent.
This line of credit option is only available to âinvited Jacaranda Finance customersâ, and at first blush it seems like a great offer. However, with an interest rate of 27.90%, itâs also an expensive one.
How To Apply For a Loan With Jacaranda Finance
While it is easier to get an Express Personal Loan with Jacaranda Finance than traditional bank lenders, there are nevertheless requirements to qualify, including:
- You must be an Australian citizen or permanent resident of Australia.
- You must be employed and if youâre in a new role, you must have been in the role for at least a month. You must have also received two full pay cycles into your bank account. If you’re paid monthly, Jacaranda Finance will need to see two payments going into your bank account. You must not have had more than a two-week gap between jobs.
- If you receive Centrelink or other government benefits as your majority or sole income then you cannot qualify.
- Likewise if you are bankrupt you cannot apply.
In order to determine your eligibility for a Jacaranda Finance loan, you must complete their online âQualifyCheckâ form. This will not impact your credit score as itâs only a soft credit check.
The Bottom Line
Jacaranda Finance appears to be operating in the middle zone between traditional lenders and the payday loan sharks spruiking loans with sky-high interest rates and minimal eligibility criteria.
As Jacaranda puts it: âHistorically, most of our customers have been considered ‘non-prime’, but as we grow as a business we are working hard toward offering competitively priced loan products to a wider base of borrowers.â
While itâs possible that Jacaranda Finance could be used responsibly, especially among those who can pay back the loan almost immediately, there is little doubt that for many it will be a last-resort option due to the high interest rates compared with traditional bank lenders.
Although credit cards have similar interest rates to Jacaranda, they at least have an interest-free period that allows the borrower some breathing room to pay down the debt.
Borrowers may prefer traditional lenders with lower interest rates. If you do decide to borrow money from Jacaranda Finance, make sure you understand what your weekly repayments will be and the interest you will be paying in addition to the sum borrowed.
If youâre struggling with repayments, you can call the free National Debt Helpline on 1800 007 007 for advice.
Frequently Asked Questions (FAQs)
Who is the owner of Jacaranda Finance?
Daniel Wessels launched Jacaranda Finance in 2014 and is the company’s CEO.
Does Jacaranda offer fixed rates?
Yes, Jacaranda Finance offers fixed rates, which means the interest rate you are charged doesn’t change for the life of the loan.
Can you get a loan from Jacaranda if youâre on Centrelink benefits?
Jacaranda states that it requires the majority of a personâs income to be paid by an employer. âThis means you may have to receive at least 50% of your total income from a full-time or part-time job, a casual job, a job as a sole trader or contractor,â the company states.
Can I get a loan with Jacaranda Finance with bad credit?
Itâs possible. Jacaranda Finance says that it offers personal loans for âapplicants with varying credit historiesâ. However, it states that you need to currently be in a âgood financial positionâ and âhandling your existing financial commitments comfortablyâ. Note also that the rate of interest you are charged will reflect your credit history.
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