Was there any charge for the loan at all? If yes, the following information may no longer be relevant. I'm assuming no, because she was your friend,
Unless you have sort of independent proof that you gave her the money as a loan, it will be your word against hers. It doesn't help that you gave her the loan in cash. Bank records showing you withdrew cash doesn't amount to much at all. You could have done just about anything with the money. The sort of proof that will help, to varying degrees is:
- Some form of written acknowledgment that you gave her the money. Information about how much, when, why, and how it was to be repaid are all relevant. Even an email or text message could be useful.
- Knowledge on what she wanted the loan for could be helpful to a court/tribunal. It's a longshot and minor, but making the argument that she couldn't have afforded the expense without a loan from someone could lend some legitimacy to other evidence. The aim here is to get her to agree to the use and that she couldn't afford it on her own. There is the possibility she'll deny it, or claim she borrowed from someone else.
- Were any repayments made at all? Details of those could establish the existence of the loan, and distinguish it from a gift.
- Have you made any written demands for payment? Copies of those and any responses, especially if she's admitted the debt, are very relevant.
Of course, she may just admit it - which makes everything easier.
Normally I'd say start the action in the state you're in. In Tasmania I think your options are restricted to the Magistrates Court. However, Victoria has VCAT which is easier for self-represented people to work with - especially the rules around evidence and procedure. Filing fees may also be cheaper, but don't quote me on that.
