$126 million year heralds significant market challenge from peer to peer lender SocietyOne
Peer to peer lender SocietyOne has finished a record-breaking year on a high thanks to massive investment and borrowing growth, with November registering $15.3 million worth of lending alone.
With a total of $126 million in lending already in 2016, the company has now recorded $200 million in loans since its inception - a benchmark Managing Director and CEO Jason Yetton attributed to the growing appeal of the peer to peer lending sector.
“2016 has been a milestone year for several reasons, not least for the fact of us reaching a total of $200 million in lending which makes us the clear leader in marketplace lending for consumer finance in Australia,” said Yetton.
The latest figures from SocietyOne highlight an increase in the number of borrowers entering the peer to peer lending market, with a 25% increase since August this year.
The company now boast 7,800 borrowing customers on their books, which Yetton suggested was a result of their distinctive model in comparison to traditional lenders.
“Australians are discovering that there is a better, trusted alternative to the one-size-fits all, higher comparison interest rates the traditional big banks offer.”
“That alternative now includes even better reasons for customers to tackle the financial issues that matter to them, whether it’s consolidating credit card debt, renovating their home, buying a car, taking that well-deserved holiday, paying for the wedding of their dreams or covering off those ever increasing school fees,” he said.
Default rates among borrowers using the company’s marketplace have also shown to be lower than the market average, sitting at 1.1% as of the end of November 2016 compared to a sector average of 2-3%.
And in a win for consumers, SocietyOne are also set to increase the borrowing limits currently imposed on customers according to Yetton.
“We are also responding to borrower demand by increasing the limit available on our personal loans from $35,000 to $50,000 which will give our customers the financial flexibility they are looking for,” he said
The comparison rate for a fixed rate personal loan with SocietyOne starts at 9.90%, and is one of hundreds of personal loans which can be compared using Mozo.
* WARNING: The Comparison Rate combines the lender's interest rate, fees and charges into a single rate to show the true cost of a personal loan. The comparison rates displayed are calculated based on a loan of $30,000 for a term of 5 years or a loan of $10,000 for a term of 3 years as indicated, based on monthly principal and interest repayments, on a secured basis for secured loans and an unsecured basis for unsecured loans. This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.
^See information about the Mozo Experts Choice Personal Loan Awards
Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.
While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.