Cash Loans vs Personal Loans
Confused about the difference between cash loans and personal loans? Learn how each works, their pros and cons, and when a cash loan may be the right choice.
When you’re looking for extra money, you’ll often come across two common terms — cash loan and personal loan. At first glance, they may seem the same, but there are a few key differences that can influence which one is right for you. Understanding these differences could help you borrow smarter and choose the loan that best fits your needs.
What is a Cash Loan?
A cash loan generally refers to a smaller loan designed to cover short-term or urgent expenses. The focus is on speed and convenience.
People often use cash loans for:
- Car repairs or urgent maintenance
- Medical or dental bills
- Rental bonds or moving costs
- Covering unexpected household expenses
With a cash loan, you can typically apply online, provide your bank statements digitally, and receive a quick decision. If approved, the funds are paid directly into your account.
Learn more about Money3's cash loan or emergency loan options.
What is a Personal Loan?
A personal loan is a broader category that includes both smaller loans (like cash loans) and larger, longer-term borrowing. Personal loans can be secured or unsecured, depending on the lender and purpose.
People tend to use personal loans for:
- Home renovations
- Weddings or major events
- Debt consolidation
- Education or training costs
- Larger purchases such as holidays or appliances
Because they can cover higher amounts, personal loans may have longer repayment terms than a cash loan, giving borrowers more flexibility.
Key Differences Between Cash Loans and Personal Loans
While cash loans are technically a type of personal loan, there are important distinctions to be aware of:
| Feature | Cash Loans | Personal Loans |
|---|---|---|
| Loan Amounts | Usually cover smaller loan amounts. | Can range from a few thousand dollars up to much larger amounts. |
| Speed of Access | Designed for quick approval and fast funding. | May take slightly longer if the amount is higher or requires security. |
| Purpose | Best for immediate or unexpected costs. | Ideal for planned projects or bigger expenses. |
| Repayment Terms | Often have shorter terms. | Can extend over a number of years, depending on the loan size and lender. |
| Eligibility | Income and affordability checks apply. | Checks may be stricter for larger loan amounts. |
Which Loan is Right for You?
Choosing between a cash loan and a personal loan depends on your circumstances:
A cash loan may suit you if:
- You need money fast.
- The expense is smaller, needed fast.
- You want a simple, straightforward loan with fixed repayments.
A personal loan may suit you if:
- You’re planning a bigger purchase or project.
- You want longer repayment terms.
- You’d like the option of a secured loan, such as vehicle finance.
Summing Up
The main difference between a cash loan and a personal loan comes down to size, speed, and purpose. Cash loans are generally smaller, faster, and suited to immediate needs, while personal loans cover larger amounts with more flexible terms.
At Money3, you could access both1 — with the confidence of fixed repayments, responsible lending, and an online process that makes applying simple.
If you’re weighing up your options, start by considering how much you need to borrow and what you need it for. From there, you’ll have a clearer idea of whether a cash loan or a personal loan is the best fit.
Common Cash & Personal Loan FAQs
Not exactly. A cash loan is usually a smaller, faster personal loan designed for urgent or short-term expenses. A personal loan can cover a wider range of amounts and purposes, often with longer repayment terms.
Cash loans are often used for unexpected bills, car repairs, medical costs, moving expenses, or other urgent needs. They’re designed to help cover immediate expenses with simple, fixed repayments.
With Money3, you can apply online in minutes and provide your bank statements digitally. In many cases, you’ll receive a decision within 24–48 business hours, and funds can be transferred straight to your account once approved.
Most cash loans are unsecured, meaning you don’t need to provide an asset as security or collateral. Larger personal loans, however, may be secured against something like a vehicle.
At Money3, cash loans typically cover smaller loan amounts, while personal loans can go higher depending on your affordability and circumstances. If you’re looking for options, explore our cash loans page.
1. Subject to verification, suitability and affordability
Where Next?
Loan Calculator
Use the loan calculator to review how much you could afford to borrow and what your repayments could be.
Cash Loans Fast
Get your loan funded quickly, with up to $30,000 cash paid into your bank account.
Quick Emergency Loans
We could help in emergencies with loan amounts of up to $30,000 - paid directly into your bank account.
Centrelink Loan Options*
Even on Centrelink, you may have loan options with Money3 - we'll give you a fair go!
Need a Bond Loan?
Rental Bond loans up to $30,000 are possible with Money3.
Bad Credit Cash Loans
Cash loans with bad credit are possible with Money3. We'll give you a fair go, even with a history of bad credit with loans up to $30,000.
1. Subject to verification, suitability and affordability
* Money3 is not affiliated with, or endorsed by, Services Australia, but does provide personal loan and vehicle finance options which are available to recipients of benefit payments
