Understanding Interest Rates and Fees on Small Loans
By Sunshine Loans
The advertised interest rate is only part of the story. Learn how interest and fees work together on small loans so you can compare the full cost.
Why Fees Matter as Much as Interest Rates
When comparing loans, many borrowers focus only on the interest rate. But fees — especially establishment fees — can significantly affect the true cost of a loan. Here's how to read the full picture.
The Sunshine Loans Fee Structure
Sunshine Loans charges a simple, transparent fee structure for its Medium Amount Credit Contracts (MACC):
- Establishment Fee: $400 (one-time)
- Maximum Annual Percentage Rate: 48% per annum
- Failed Payment Default Fee: $35
- No account-keeping or regular fees
Comparison Rate vs Annual Percentage Rate
The comparison rate combines the interest rate and most fees into a single figure, making it easier to compare loans. The Annual Percentage Rate (APR) reflects the interest charged on the outstanding balance throughout the year.
Calculating Your Repayments
Your repayment amount depends on the loan amount, term length, and your pay cycle. Sunshine Loans aligns repayments with your pay schedule so you're never caught short.
General information only; not personal financial or legal advice. Consider your circumstances and seek independent advice where needed.