Tara Porter

If you are in a pinch and could use some extra cash, but don’t want to charge it to a credit card or take out a large loan, you have some other options. MACC and SACC loans are smaller, short-term loans that could help you out. The purpose of these loans are to help you meet unexpected expenses by providing you with a convenient and economical way to manage a temporary cash flow problem.

We are going to walk you through both of these types of loans, explaining some of their benefits and some of their drawbacks.

What are SACCs and MACCs?

SACC loans (or Small Amount Credit Contracts) are small personal loans that are often used when someone is a little low on cash. Individuals tend to use these types of loans to help with events such as getting by between paychecks during a rough month, house repairs, car repairs, etc.

MACC loans (or Medium Amount Credit Contracts) are slightly larger loans than the SACC loans. These loans are between $2,001 to $5000 and tend to cover larger expenses such as car purchases, home appliance purchases, etc.

Time to Pay Off

The SACC and MACC loans differ in the amount of time required to pay them off. With a SACC, you would need to pay back your full loan between 16 days and 1 year. With the MACC, on the other hand, you’d have up to two years to pay off the loan.

Charges and Interest

While there are fees associated with SACC and MACC loans, it’s not as bad as it used to be for small personal loans. Both the SACC and MACC loans were created with several rules and guidelines around them for your benefit. Previous payday-type loans led individuals into debt spirals. SACC and MACC loans both have cost caps to help prevent this.

For the SACC loan, individuals pay an establishment fee of 20% of the original loan amount. On top of that, there is also a 4% monthly account-keeping fee and a 48% interest rate. Additional fees can occur if you have trouble paying off the loan or if there are government fees. However, all of these fees cannot exceed double the loan amount.

MACCs have a similar concept behind the cost cap. All fees and interest (accounted for annually) cannot exceed 48% of the original loan amount. Therefore, the MACC loan has an establishment fee of $400, but beyond that, fees cannot exceed that 48% mark. This means that interest can be up to 48%, but can often be lower than that amount.

Security with Your Loan

One of the key differences between the SACC loans and the MACC loans (aside from the loan amount) is that SACC loans are unsecured loans and MACC loans can be either unsecured or secured. What this means is if your loan is secured, then lenders can use one of your assets to secure your loan. For example, let’s say that you use your car to secure your loan. In the event that you cannot pay back your loan in time, the lender could repossess your car. Lenders are not permitted by law to take personal home assets, such as beds and white goods.

If you do find yourself in a position where you are having difficulty making payments, be sure to connect with your lender before you start missing payments. Lenders are often willing to rearrange your payment plan if you are experiencing financial hardship.

Impact on Credit Score

The SACC loans and MACC loans also impact your credit score differently. While the SACC loan will impact your credit score negatively, regardless of whether or not you pay it off on time, the MACC loan does not impact your credit score unless you fail to make your payments.

Final Thoughts

While these small personal loans are certainly options available for you in a pinch, it’s not something you want to take advantage of all the time. These loans have significantly high interest rates with various fees added on top of that. While laws protect you from the debt spiral formerly associated with payday loans, it’s still not a wise move to take out SACC and MACC loans unless you absolutely need them.


1. https://nowfinance.com.au/sacc-loans-vs-macc-loans/
2. https://www.finder.com.au/small-loans-vs-medium-loans
3. https://friendlyfinance.com.au/loan-type-sacc-vs-macc/
4. https://www.moneysmart.gov.au/borrowing-and-credit/consumer-credit-regulation
5. https://www.brightlaw.com.au/small-amount-credit-contracts-clarified/

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