Peer to peer lender RateSetter writes $7 million of loans since last November

Since it started its operations in Australia last November, peer to peer lender RateSetter, has written $7 million of loans with investors committing to an average funding of just over $6000.

RateSetter is an online marketplace where people lend and borrow money. The company has been functioning in the UK for several years and if Australia follows the same lending pattern, the company is confident that investors will soon start raising their funding.

RateSetter Australia chief executive Daniel Foggo said the company had written $7 million of loans since opening in Australia last November, with the average loan size a little over $16,000.

Foggo said the performance of the portfolio was good, with only a couple of loans in arrears and no defaults.

The average age of borrowers is 40, with an average income of $90,000 and half of them are home owners. The most common reason for borrowing is to purchase a car. Foggo said this was also the most common type of loan in the UK.

Loan pricing on RateSetter is carried out on a "last match rates" basis. Lenders post the price at which they are prepared to lend and borrowers post the rate they are looking for; when there is a match the transaction proceeds.

Foggo also added that, as activity builds on the platform, rates are coming down. For instance, the rate on a five-year loan has come in from ten per cent to 9.5 per cent so far this year, while the rate on a three-year loan has come in from 8.5 per cent to 7.5 per cent. The rate on a one-year loan is around five per cent.

In the UK, RateSetter investors have an average investment of £20,000 and Foggo said he expected the investment amount to trend up to that level in Australia as well. About ten per cent of investors are self-managed superannuation fund trustees.

Want to compare P2P personal loans? Then head on over to our peer to peer hub to kick off your search. 

Personal loan comparisons on Mozo - last updated 18 May 2022

Search promoted personal loans below or do a full Mozo database search. Advertiser disclosure
  • Unsecured Personal Loan

    Fixed

    interest rate
    comparison rate
    Monthly repayment
    5.35% p.a.to 19.09% p.a.
    6.14% p.a.to 19.99% p.a.based on $30,000
    over 5 years

    Fast, easy and 100% online, this is a low cost loan with no ongoing fees or extra repayment penalties. It's perfect for savvy borrowers with great credit. If you’re over 18 and earn above $30,000, you could qualify (other eligibility criteria may apply).

    Repayment terms from 3 years to 7 years. Representative example: a 5 year $30,000 loan at 5.35% would cost $34,832.61 including fees.

    Details
  • Home Improvement Loan

    Fixed, Unsecured

    interest rate
    comparison rate
    Monthly repayment
    5.75% p.a.
    5.96% p.a.based on $30,000
    over 5 years

    Handypay offers flexible home improvement loans for Excellent Credit or better. Handypay is a specialist home improvement plan provider and offers loans up to $75,000.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 5.75% would cost $34,840.18 including fees.

    Details
  • Personal Loan

    Unsecured, Fixed, Excellent Credit

    interest rate
    comparison rate
    Monthly repayment
    6.39% p.a.to 7.89% p.a.
    6.39% p.a.to 8.49% p.a.based on $30,000
    over 5 years

    With low rates for borrowers with excellent credit, a quick 1 minute rate estimate and simple online application, there’s a lot to love about this loan! You’ll not only benefit from no exit fees, there are also no early repayment fees. You could qualify by simply earning above $25,000 and you’ll be on the way to start spending (other eligibility criteria may apply).

    Repayment terms from 3 years to 5 years. Representative example: a 5 year $30,000 loan at 6.39% would cost $35,126.40 including fees.

    Details
  • Unsecured Personal Loan

    Fixed

    interest rate
    comparison rate
    Monthly repayment
    5.95% p.a.to 17.45% p.a.
    6.79% p.a.to 17.86% p.a.based on $30,000
    over 5 years

    Wisr offers personal loans for any worthwhile purpose, tailored to your credit score to ensure you’re getting a fair deal. Plus, no ongoing or early exit fees. Loans from $5,000 to $79,000. Terms of either 3, 5 or 7 years. $595 establishment fee. Eligibility criteria applies.

    Repayment terms from 3 years to 5 years. Representative example: a 5 year $30,000 loan at 5.95% would cost $35,352.21 including fees.

    Details

* 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.