MAAC Loans
What is a MAAC loan, and who is it for?
A MAAC loan (known in the credit law as a medium amount credit contract, or MACC) is a loan of $2,001 to $5,000, repaid over 16 days to 2 years, regulated under the National Consumer Credit Protection Act. It sits between a payday advance, which is a smaller amount repaid over one or more pay cycles, and a personal loan of $5,001 or more.
People use them for the costs that are too big for a payday advance: a car repair, a rental bond, dental work, replacing a fridge or washing machine, or an unexpected trip.
How Cash Today matches you
Cash Today is not the lender. One application goes to our panel of over 60 Australian lenders, and we match you with the lender most likely to approve you. There are no documents to upload and no hard credit enquiry before you’re matched; an automatic check of your bank statement runs first, so a lender only sees your application if your income and spending fit what they accept. If approved, the money is paid by instant bank transfer, often the same day, depending on your bank.
What lenders look at on a $2,001 to $5,000 application
Regular income, usually from employment or a mix of employment and Centrelink, and 90 days of bank statements showing the repayments are affordable. Dishonoured payments and a run of other short-term loans in that window are the most common reasons a medium loan is declined. The interest rate depends on the lender, the loan amount and your financial situation; you’ll see the exact rate and total cost in your loan offer before you accept.
Updated by Steve Stemp on 18/4/23
Reasons for a MAAC loan
MAAC loans are generally used to meet larger expenses such as replacing whitegoods, car purchases,
rental bonds, dental expenses, unexpected travel, etc.
Some customers prefer to use a MAAC loan rather than a bank credit card or a personal loan for a
similar amount through a bank or building society.
MAAC Loan Fees & Charges
With any type of credit, it is important to remember that there are fees and charges attached to the product and it is important to compare different loan products to determine which product works best for you.
MAAC loans may have:
- An establishment fee
- An ongoing monthly fee
- Interest charged
- Late payment fees
By law, a MAAC loan can carry an establishment fee of up to $400 plus interest capped at 48% a year.
Lender responsibilities
Government regulation requires that your loan provider carry out “responsible lending obligations” to ensure you can afford the loan you are asking for.
Your loan provider will complete a financial assessment to confirm that you have sufficient disposable income to service your MAAC loan. Different loan providers may have different ways of assessing your ability to repay the loan you are applying for.
Applicant responsibilities
MAAC loans can be secured or unsecured:
“Unsecured” means that you don’t have to pledge an asset as security to take out the loan.
“Secured” means that you must pledge an asset you own, such as a vehicle, to take out the loan.
If you fail to pay the loan out, the lender is entitled, by law, to repossess your asset as payment towards the unpaid loan amount.
If the sale of your loan security does not payout the loan, you are liable for the shortfall.
As long as you pay out your loan completely as per the terms of the loan contract, providing an asset to secure a loan can have advantages in securing a better interest rate.
By law, lenders cannot take security over home assets such as beds and essential whitegoods such as a fridge or washing machine.
If you have taken out a MAAC loan and are experiencing financial problems in meeting your loan commitments, it is best practice to immediately contact your loan provider. This should assist in avoiding any penalties and added fees.
Your loan provider will most likely agree to a change your loan repayment schedule or amount under its financial-hardship responsibility to you. This is the case whether your MAAC loan is secured or unsecured.