Are Payday Loans A Good Idea?

If you haven’t used Cigno before, you might be wondering how a payday loan can help get you out of that financial quicksand. But before we go any further, it is important to remember that a payday loan should only be used as needed, when you know you can afford the repayments.

Our loans at Cigno have helped Australians far and wide with financial assistance. At the end of the day, we are only here to help in times you need it most. The following blog post will outline how this type of loan works and whether or not it is the right product for you. Below you will find some commonly asked questions about instant payday loans. And if there is still something you would like answered, you can always refer to our FAQs page, or, feel free to call our friendly customer service team.

What is an instant payday loan?

This type of loan has been called every name under the sun. From instant payday loans, to small, short-term and same-day loans, it doesn’t matter what they are called. What matters, is how and why they can help you. They get their name (whichever one you choose) based on lots of things. Firstly, let’s talk speed. Instant, fast, or same-day loans, yep, you guessed it, generally appear in your chosen bank account within hours of approval. Why? Because when you are in a financial emergency, you need cash fast.

The term ‘payday’ is perhaps the most commonly used. That’s because this type of loan was designed as an interim solution until you are paid by your respective employer. It is a small amount of money, deposited into your account to tide you over until payday.

How Much Can I Borrow?

At Cigno Loans, we offer a wide range of payday loan amounts. Part of the application process involves specifying exactly how much you need to solve your particular situation. We always recommend you only take what you absolutely need, because these loans are designed to be paid back as soon as you get your next payday.

You can borrow anything from $100 to $2000. This level of flexibility means you don’t have to think twice like you would if we only offered set amounts like credit cards do. With a payday loan, you can take as little as you need safe in the knowledge that you know you’ll be able to comfortably pay back everything you owe when your next payday comes around.

What are the associated fees?

The legislation in our industry continuously changes. But the industry standard for a loan of this type includes the following:

  • A one-off establishment fee which is 20% of the amount loaned
  • A monthly fee which is 4% of the principal loan amount
  • Any applicable government fees or charges
  • Fees or charges if you default on the loan

Cigno, through Gold-Silver Standard Finance, charges a flat fee of 5% of the amount that you borrow, which is charged the day your loan is approved and accepted, and is then repayable as part of your repayment schedule.

The real difference is in comparison to other types of loans, including home loans and credit cards. These charge interest annually whereas instant payday loans charge monthly, which is important to be aware of.

When can I get an instant payday loan?

The answer is in the question! Well, actually it’s not instant. Cigno generally pays into your account within hours, however, if approved late in the afternoon, you should receive the cash by 11:00am the very next day.

What if I have bad credit, Am I still eligible?

As mentioned above, because they are ‘payday’ loans, they are ideally repaid when your next payday arrives. This is why the criteria of eligibility is more flexible than big-ticket loans for mortgages etc. Often credit history isn’t the major concern, it is the ability to repay. This is why we require identification and a bank statement in the assessment of your eligibility for an instant payday loan.

Borrowing responsibly

We advocate responsible borrowing as much as we practice responsible lending. Although we endeavour to help you in time of financial crisis by considering all applications, we will not loan money we believe can’t be repaid. All applications submitted to Cigno are assessed on the ability to repay the loan, and this is why we don’t approve amounts that can’t. Where possible, instead of disapproval, we will try and reach a conclusion that can still assist your financial need while being repayable.

Remember: borrow what you need.

No Catches. No Hidden Fees. No Worries.

Learn everything there is to know about the costs associated with a Cigno instant payday loan here. Cigno is a reputable payday lender. We have always been transparent about our products and services. For more information, please don’t hesitate to contact us.

You can continue your loan education in our previous blog post: Understanding Different Types of Small Loans

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