Are Payday Loans A Good Idea?

There will come a time when you must take out a loan for your home, bills, or your family. If you need payday loans to get you through a financial emergency, it is essential that you do examine and choose the suitable one for you.

Payday loans have been popular and indispensable for quite sometime now. You can look at it in a positive light as these loans helped people who faced shortage of financial resources. But a few loan specialists can be evasive in their methods and this can leave you with a huge debt. You can use some tips that are applicable in eluding the traps of acquiring a loan.

The lender will have you go through an evaluation to ensure that your credit score will suffice and that you are creditworthy. In case of rejection, it will be recorded on your credit file and this black mark will be visible to future lenders.

Some lenders allow a soft search (informal enquiry) which is a better option without it going on your credit record.

Taking out a Payday loan

There are conditions to meet before obtaining a payday loan. Lenders can establish a lot of terms when issuing the loan. It is always good practice to negotiate the best terms possible with the lenders to avoid intricacies on reimbursements. People with bad credit can qualify for payday loans as the lenders tend to overlook the history of creditworthiness with this type of loan. There are several important aspects which most borrowers need to know before they get involved in the payday loans application. It is good to try to figure out how to make the repayments early on and if it’s feasible.

It is crucial to ask the lenders for a full disclosure regarding the terms and conditions of the loan. Subsequently, consider the payday loans repayment amount and period and see if it works for you.

Payday loans cost

Cost is one of the main concerns borrowers have with payday loans. What are the interest rates? How much will be charged? What if I can’t handle the repayments? Many lenders are transparent with their fee structures, outlining what you will and might be charged for when you make a deal with them. One of these lenders is Cigno Loans. The data below can give a clear idea of cost you might agree on.

Through loan application, Cigno can help you customise where exact costs can be given.

Once approved, Cigno can send you a service agreement with multiple options (you have a choice for the easiest option) on how you can make the repayments. There is no obligation to take the loan if you think it’s doesn’t fit. Nothing is hidden, no surprises, no catches, no worries!

The costs are broken down into 2 components:

  • The lender, Gold-Silver Standard Finance Pty Ltd’s (GSSF), cost.
  • Cigno’s charges as a service provider.

Gold-Silver Standard Finance Fees

Fee is calculated as a fixed, one-off non-interest charge equal to 5% of the loan amount.

Cigno Fees

Financial Supply Fee:

  • 1 payment loan – 35% of loan amount
  • 2 payment loan – 45% of loan amount
  • 3 payment loan – 60% of loan amount
  • 4 payment loan – 75% of loan amount

Account Keeping Fee — $5.95 per week

Same Day Deposit Fee – $16.00 (Optional)

Priority Transfer Fee – $16.00 (Optional)

Additional Fees — In the event of your loan deviating from its original contract, additional fees and charges may apply. For more information, please refer to Disclosures and Authorisations.

Extra charges and interest rates

For each type of a lender, you will get different terms and rates of interest. Some loan conditions in your agreement can cost you extra charges aside from your principal and interest. Administration fees and early repayment charges can be included in your contract so it is expedient to read all of the small print shown to you. Early repayment is always ideal so find a lender who won’t charge you for it.

Loan companies always advertise and market the interest rates in a representative way. Representative means that most borrowers are paying this rate, there is no low-rate guarantee to qualify for. Be aware of falling into this when looking for a loan.

Disclaimer: Please be aware that Cigno Loans’ articles do not replace advice from an accountant or financial advisor. All information provided is intended to be used as a guide only, as it does not take into account your personal financial situation or needs. If you require assistance, it is recommended that you consult a licensed financial or tax advisor.


Ordered by the Federal Court of Australia

The Federal Court of Australia has found that Cigno Australia Pty Ltd (Cigno Australia) and BSF Solutions Pty Ltd (BSF Solutions) have breached the law by engaging in unlicensed credit activity and charging prohibited fees.

In the period from July 2022 to 3 October 2023, over 100,000 consumers have been lent a total of $34 million, and charged fees of over $70 million, under the ‘No Upfront Charge Loan Model’ operated by BSF Solutions and Cigno Australia. At no time has either BSF Solutions or Cigno Australia held an Australian Credit Licence.

The Court also found that Mark Swanepoel (director of Cigno Australia) and Brenton James Harrison (director of BSF Solutions) were involved in these breaches of the law.

With effect from 24 May 2024, the Court has granted permanent injunctions preventing Cigno Australia and BSF Solutions from:

  • demanding, receiving or accepting fees or charges, including amounts of loan principal, from consumers in relation to credit provided under the ‘No Upfront Charge Model’; and
  • engaging in further credit activity pursuant to the ‘No Upfront Charge Loan Model’, including by entering into new agreements with consumers, for so long as they do not hold an Australian Credit Licence.

Cigno Australia was ordered by the Court to, by 5th July 2024, send written communications to consumers who between July 2022 and December 2022 entered into agreements with Cigno Australia and BSF Solutions under the ‘No Upfront Charge Loan Model’.

The Court will later determine whether (among other things) Cigno Australia and Mark Swanepoel ought to pay a pecuniary penalty in respect of this conduct, and whether Mark Swanepoel should be restrained from carrying on a business engaging in credit activity.

Cigno Australia, BSF Solutions, Mr Swanepoel and Mr Harrison intend to appeal the decision of the Court and have filed an application for leave to appeal. If the appeal is successful, some or all of the orders of the Federal Court of Australia may be set aside.

Where can you get more information?

Where to go for further support

You can access legal advice in your state at: Free legal advice –

If you are experiencing trouble with debt, or money worries in general, contact:

  • the National Debt Helpline on 1800 007 007 or online chat (9:30am to 4.30pm, Monday to Friday).

If you need someone to talk to, contact:

  • Lifeline on 13 11 14 (24 hours) or their crisis support online chat or
  • Beyond Blue on 1300 22 46 36 (24 hours) or their webchat