Small Personal Loans NZ: How They Work and What They Cost

Sometimes life happens, and we need a little bit of cash to help us get ahead.

Fridge on the fritz? Maybe your car has just failed its WOF and needs repairs before you can get back on the road. A small personal loan can help cover it. Here's how small loans work, what they actually cost, other options worth checking first, and how to tell if a loan is the right fit for you.

And if you'd like a hand along the way, give us a call. One of our friendly team can answer any questions.

 

Small Personal Loans At a glance

• Borrowing amounts: you can borrow from $500 with Instant Finance.

• Fast $500 (when it's available): $500 at 0% interest with a one-off $95 establishment fee, so $595 in total, repaid over up to 3 months.

• Standard loans from $500 have personalised rates of 9.95% to 29.95% p.a., plus fees. For example, $2,000 over 12 months at 19.95% is $50.34 a week, or $2,617.68 in total.

• Terms: our minimum weekly repayment is $25, so smaller loans come with shorter terms.

• Other help first: it's worth checking whether Work and Income or ACC can help with the cost first, especially for funerals.

• Timing: if you're approved, in many cases you can have the money the same day or within 24 hours.

What is a small personal loan?

A small personal loan is a set amount of money you borrow and pay back in regular instalments over an agreed time.

At Instant Finance you can borrow from $500.

A loan can be secured, which means something you own (like your car) backs the loan, or unsecured, which means it doesn't. Which one applies depends on your circumstances and how much you borrow.

Our minimum weekly repayment is $25, so smaller loans come with shorter terms.

That keeps the total interest down, and you won't be paying off a small loan for years.

Small loan options at Instant Finance

	Fast $500	Cash Loan
Amount	$500	$500 to $50,000
Interest	0%	9.95% to 29.95% p.a. (personalised)
Fees	One-off $95 establishment fee	Establishment fee ($100 to $220), $3 admin fee per instalment, $7.70 ID verification fee
Term	Up to 3 months	Depends on the amount (minimum repayment $25 a week)
Total to Repay	$595	Depends on amount, rate and term
Good for	A small, short-term cost	Bigger costs, or when you need a little longer to repay

• Fast $500 is available from time to time. Check the full Fast $500 terms for details.

• A Cash Loan is our everyday option for small loans and bigger ones too.

• Already have a loan with us? You may be able to top up your existing loan instead.

What does a small loan cost?

The cost of a loan is the interest plus any fees. Here's what two small loans look like.

Fast $500

$500 at 0% interest, with a one-off $95 establishment fee.

That's $595 in total, repaid over up to 3 months. There's no admin fee. Default interest applies if repayments are overdue (see the full terms).

A $2,000 Cash Loan

As an example, $2,000 over 12 months at 19.95% p.a. works out at about $50.34 a week, or $2,617.68 in total including fees.

That total includes an establishment fee ($100 to $220, depending on how much new money you borrow), a $3 admin fee for each instalment and a $7.70 ID verification fee.

Our rates range from 9.95% to 29.95% p.a., and the rate you get depends on your circumstances.

You can try different amounts and terms on our loan calculator, and see the full list on our rates and fees page.

We won't let you get in over your head: we'll go through your budget with you to make sure the repayments fit.

Terms and conditions, and responsible lending criteria apply.

Before you borrow: other options worth checking

It's worth a quick check before you borrow. Sometimes there's help that costs less, or nothing at all. If a loan is still the right fit, we're here.

• Work and Income can help with urgent costs, even if you're working. That includes things like car repairs, essential dental treatment, whiteware and urgent power bills. Some of this help is a grant, and some has to be paid back. See Work and Income: urgent or unexpected costs.

• Ask about a payment plan. Some power companies, dentists, vets and other providers will let you pay a bill off over time.

• Free budgeting help. MoneyTalks offers free, confidential financial advice. We're happy to help you with a budget too.

• Funeral costs: see the funeral section below for the government grants that can help.

 

Comparing every option? See our guide to emergency loan options, including credit cards, overdrafts and Work and Income help.

Good reasons to get a small loan

A good reason is one where you know exactly what the money is for, and the repayments fit comfortably in your budget.

When you apply, we'll ask what the loan is for. That helps us make sure it's the right fit.

Here are some of the most common reasons people borrow a small amount.

Unexpected bills and repairs

It's always good to build an emergency fund, but sometimes life catches us off guard. A small loan can help with things like:

• car repairs, like getting through a WOF;

• a broken fridge, washing machine or other whiteware;

• medical or dental bills.

Funeral costs

Losing someone is hard enough without worrying about the bill. A very modest funeral with a burial in New Zealand costs around $8,400 on average, according to the Funeral Directors Association.

Before you borrow, check whether you can get help:

• Work and Income Funeral Grant: up to $2,697.43 towards essential funeral costs, if you meet the income and asset tests. In most cases it doesn't need to be paid back.

• ACC funeral grant: up to $7,793.13 towards funeral costs if the person died from an injury ACC covers.

If there's still a gap, a small loan can help you cover the rest or travel to be with family.

And if you'd like to plan ahead so your family isn't left with the bill, Life and Funeral Insurance is one option.

Unexpected travel

Sometimes you need to get somewhere fast: flights home because a family member is unwell, or travel to a funeral.

A small loan can cover the fare when there's no time to save. For bigger trips you're planning ahead, see our travel loans.

Christmas

Christmas can stretch any budget, from presents to food to travelling to see family.

If you're thinking of a small loan for Christmas, set your gift budget first, borrow only what your savings won't cover, and make sure the repayments will be finished well before next Christmas.

Here's more on Christmas loans.

Small home jobs

A leaking tap that needs a plumber, a new heater before winter, or a fresh coat of paint: a small loan can help get those jobs done. For bigger projects, see our loans for your home.

Tidying up small debts

If you're juggling a few small debts, like a credit card, a couple of Buy Now Pay Later plans or an overdue bill, debt consolidation can roll them into one repayment with a fixed interest rate, so they're easier to keep track of.

Is a small loan right for you?

Ask yourself three questions before you apply.

What do I need it for?

Know exactly what the money is for and how much you need. A clear plan for how much to borrow and how you'll repay it helps you manage the loan well. Our loan calculator shows what the repayments would be.

Who should I borrow from?

Not every lender has your best interests at heart.

Compare interest rates and fees, customer service, the terms and how well-established the lender is.

Instant Finance is 100% New Zealand-owned and has been helping Kiwis since 1971.

Can I afford the repayments?

This is the big one.

Look at your income and expenses and make sure the repayments fit, including the interest and fees.

If you'd like a hand tracking your spending, our guide can help.

Small loan questions, answered

What's the smallest amount I can borrow?

You can borrow from $500 with Instant Finance. Our minimum weekly repayment is $25, so smaller loans come with shorter terms.

How much does a $500 loan cost?

With our Fast $500 loan, when it's available, you pay 0% interest and a one-off $95 establishment fee, so $595 in total, repaid over up to 3 months. A standard loan from $500 has a personalised rate of 9.95% to 29.95% p.a., plus fees.

Can I get a small loan with bad credit?

A default or a mark on your credit file isn't an automatic no with us. We look at your current situation, not just your history, and we'll always tell you honestly where you stand.

How quickly can I get a small loan?

If your application is approved, in many cases you can have the money the same day or within 24 hours. We can't guarantee timing, because it depends on your application.

What is a good reason for a personal loan?

A good reason is one where you know exactly what the money is for and the repayments fit your budget, like an unexpected repair, a medical bill, a funeral or travel to family. We'll ask what the loan is for when you apply, so we can make sure it's the right fit.

Are small loans secured or unsecured? 

It depends on your circumstances and how much you borrow. Fast $500 loans are unsecured. For other loans, we'll talk you through your options when you apply.