Peer to peer loans are flexible, offer standout rates, low fees and fast access to funds - on the same day in some cases! Generally, peer to peer lenders use a risk-based tier system, which means the best rate will be given to those people with a good credit rating. Check out the table below to compare peer to peer personal loans.
Unsecured, Fixed
Terms from 1 to 5 years. Representative example: a 5 year $30,000 loan at 5.45% would cost $34,340.57 including fees.
Excellent credit score needed to obtain this rate. Enjoy no-fuss personal loans of up to $30,000 with Alex Bank. No hidden early repayment penalties. Terms from 6 months to 5 years. Convenient and fast 100% online approval. Must be over 18 to be eligible. Winner of Mozo's Experts Choice Best New Loan Product award 2021^.
Excellent credit score needed to obtain this rate. Enjoy no-fuss personal loans of up to $30,000 with Alex Bank. No hidden early repayment penalties. Terms from 6 months to 5 years. Convenient and fast 100% online approval. Must be over 18 to be eligible. Winner of Mozo's Experts Choice Best New Loan Product award 2021^.
Read our Mozo Review to learn more about the Alex Bank Personal Loan
Excellent Credit
Terms from 1 to 7 years. Representative example: a 5 year $30,000 loan at 5.45% would cost $34,590.57 including fees.
OurMoneyMarket offer competitive low rates on loans up to $75,000, plus free extra repayments and fee-free redraw facility. Winner of Mozo's Experts Choice Unsecured Personal Loan 2021 award.
OurMoneyMarket offer competitive low rates on loans up to $75,000, plus free extra repayments and fee-free redraw facility. Winner of Mozo's Experts Choice Unsecured Personal Loan 2021 award.
Read our Mozo Review to learn more about the OurMoneyMarket Low Rate Personal Loan
Unsecured, Fixed, Excellent Credit
Terms from 3 to 5 years. Representative example: a 5 year $30,000 loan at 6.39% would cost $35,126.40 including fees.
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. To qualify, simply earn above $25,000 and you’ll be on the way to start spending.
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. To qualify, simply earn above $25,000 and you’ll be on the way to start spending.
Read our Mozo Review to learn more about the Plenti Personal Loan
Fixed
Terms from 1 to 5 years. Representative example: a 5 year $30,000 loan at 5.35% would cost $34,832.61 including fees.
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'll likely qualify.
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'll likely qualify.
Read our Mozo Review to learn more about the Harmoney Unsecured Personal Loan
Variable, Unsecured
Terms from 1 to 7 years. Representative example: a 5 year $30,000 loan at 5.75% would cost $35,190.18 including fees.
Get a personalised rate quote in just 2 minutes, apply in just 7 minutes. Money transferred to your account the next business day. No exit or early repayment fees. Borrow up to $50,000.
Get a personalised rate quote in just 2 minutes, apply in just 7 minutes. Money transferred to your account the next business day. No exit or early repayment fees. Borrow up to $50,000.
Read our Mozo Review to learn more about the Symple Loans Personal Loan
Excellent Credit, Fixed
Terms from 2 to 5 years. Representative example: a 3 year $10,000 loan at 5.95% would cost $10,943.74 including fees.
Be rewarded for your good credit history with low rates. No ongoing fees. Pay off your loan with no early repayment penalties. Apply online and get a quote in minutes
Be rewarded for your good credit history with low rates. No ongoing fees. Pay off your loan with no early repayment penalties. Apply online and get a quote in minutes
Read our Mozo Review to learn more about the SocietyOne Unsecured Personal Loan
Fixed
Terms from 3 to 5 years. Representative example: a 5 year $30,000 loan at 6.49% would cost $35,210.64 including fees.
Low personalised rates, ideal for borrowers with excellent credit. No monthly account fees, no early payout fees, so you can pay off your loan sooner. $0 establishment fee for loans from $5,000 to $30,000, a $595 establishment fee will be charged on loan amounts of $30,001 to $64,000.
Low personalised rates, ideal for borrowers with excellent credit. No monthly account fees, no early payout fees, so you can pay off your loan sooner. $0 establishment fee for loans from $5,000 to $30,000, a $595 establishment fee will be charged on loan amounts of $30,001 to $64,000.
Read our Mozo Review to learn more about the Wisr Unsecured Personal Loan
Very Good Credit
Terms from 1 to 7 years. Representative example: a 5 year $30,000 loan at 8.49% would cost $37,171.08 including fees.
Competitive low rates on loans up to $75,000. Free extra repayments. Fee-free redraw facility. Winner of Mozo's Experts Choice Unsecured Personal Loan 2021 award.
Competitive low rates on loans up to $75,000. Free extra repayments. Fee-free redraw facility. Winner of Mozo's Experts Choice Unsecured Personal Loan 2021 award.
Read our Mozo Review to learn more about the OurMoneyMarket Low Rate Personal Loan
^See information about the Mozo Experts Choice Personal loans Awards
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If you're looking to borrow from a non-traditional lender, then you may be wondering if a peer to peer provider could be a good alternative. But what exactly is peer to peer lending and is it the right option for you?
Let our quick P2P lowdown answer all those tricky questions to help you decide:
What happens when you remove the banks from the borrowing equation and connect investors directly with borrowers? Well, according to the peer to peer movement you'll get a better personal loan deal with lower rates and fees. Peer to peer platforms aren't just limited to the personal loan world either but include all sorts of services including car-sharing, house swaps, clothes swaps and more...
For instance, house swapping platforms like AirBnB allow homeowners to rent out their property to holiday goers for a short stint. The homeowner gets some much-needed cash and the holiday-goer benefits from paying a cheaper amount for their overseas accommodation.
Traditional peer to peer lending and borrowing works in the same way, as an individual investor uses the P2P platform to lend directly to a borrower. The investor benefits from earning a profit through the interest charged and also gets that good feeling of helping out a stranger, whilst the borrower receives a more competitive rate and lower fees than what is offered by the big banks.
Learn more about peer to peer lenders by reading our tell-all guide here.
In Australia there are only a few main players (so far) for personal lending:
SocietyOne: As the first peer to peer platform to launch in Australia back in 2011, SocietyOne has a slightly different lending model to the traditional peer to peer platforms overseas because instead of connecting individual investors with strangers, the platform connects wholesale investors with borrowers.
Plenti: Originating in the UK, Plenti was brought to Australian shores in 2014 and was the first peer to peer platform to offer investment opportunities to everyday Aussies and is also known for introducing the concept of a provision fund aimed at protecting lenders if the borrower defaults on the personal loan.
MoneyPlace: The newest player to enter the game of peer to peer lending in Australia is Melbourne start-up MoneyPlace. Like SocietyOne and Plenti, this P2P provider offers competitive rates to creditworthy borrowers. In 2015, MoneyPlace entered into a five year $60 million strategic partnership with Auswide Bank, which will support the P2P lender during its initial growth stage.
You can compare the P2P providers side by side in the comparison table at the top of this page by interest rate, comparison rate (a calculation that shows the cost of both the rate and fees) and the features.
By removing the banks from the borrowing equation, peer to peer lenders have vastly lower overheads, as they don't have to pay dividends back to shareholders. Plus, they are run entirely online, which means they don't have to pay the high cost of branches and managers either.
Just like peer to peer lenders, credit unions are also part of the strangers helping strangers social movement, as they are completely customer owned and run by the philosophy of passing profits back to customers not shareholders.
However, there is a distinct difference between the two, as credit unions don't offer the option of becoming an investor like with a P2P player.
As a borrower though, your experience should be the same whether you go for a P2P lender or credit union - you apply for the personal loan and once approved you pay it back in set instalments over an agreed period of time (usually between 1 to 5 years). So if you're trying to choose between going for a P2P lender or credit union, the decision breaker should really be the better deal.
As long as you meet the conditions of the P2P provider - e.g over 18 years old and are an Australian resident - you'll be eligible for a peer to peer loan. But keep in mind if you have a poor credit rating you'll have to pay more in interest, as peer to peer lenders use a tier based pricing system reserving their best interest rates for creditworthy borrowers.
For instance at the time of writing, one of the peer to peer players we looked at was offering a low 8.95% interest rate if you had an "excellent" Veda Credit Grade but if your credit rating was "below average" you would receive a high 17.23% interest rate.
If you're a creditworthy borrower looking for a loan under $35,000 for a term of 1 to 5 years then a peer to peer loan could be for you, as peer to peer providers generally have smaller borrowing amounts and shorter timeframes compared to the major bank providers, whose loans can reach up to $100,000 and stretch over a 10 year period.
It's also perfect for borrowers who don't have any security like a car or house to secure a loan with, as peer to peer loans are usually unsecured. Plus if you're on a strict budget, you'll love the fact that P2P loans generally have fixed interest rates that are locked in for the life of the loan.
But if this doesn't sound like you, compare the personal loan market
here, to find the right borrowing match for your needs.Just like any other personal loan, it's important to look for flexible features to make the loan work for you. Here are some things to keep an eye out for:
Extra repayments facility: When you get some extra cash in your pocket, you'll be thankful if the P2P loan you signed up with allows you to make extra repayments, as a little bit extra can go a long way in the long run. For instance, if you take out a $30,000 loan over 5 years with a 9% interest rate and make an extra repayment of $200 each month you will save $2,187 in interest and slash your personal loan by 1 year and 5 months.
Redraw facility: While paying off your personal loan early should be your ultimate goal, if you need some money for unexpected bills or a new family car down the track, the option of dipping into those extra repayments you've made could come in handy.
Flexible repayment frequency: Another feature that can help you pay down your loan sooner is setting up your repayments over a fortnightly cycle rather than monthly. With 26 fortnights in the year, compared to just 12 months this will mean you will pay an extra month every year of the life of the loan. For example, if your fortnightly repayments are $500 you will pay off $13,000 in a year, whereas if your monthly repayments are $1,000 you will only pay off $12,000.
Does a peer to peer provider sound like the right match for your borrowing needs? Scroll to the top of the page to start your comparison. Or alternatively use our personal loan comparison tool to search Mozo's personal loan database that covers over 100 loans in the market today.
The majority of major peer to peer (P2P) players in Australia only offer unsecured fixed interest rates, but there are variable rate options available in the market.
Generally, peer to peer lenders use a risk-based tier system, which means the interest rate is scalable depending on your credit profile. The best interest rate will be offered to those with a squeaky clean credit rating.
Yes, however, peer to peer borrowing fees are generally lower than those attached to personal loans from the big banks, with some P2P providers offering no application, ongoing fees or exit fees.
Peer to peer providers will have an online application page and you'll need regular information on hand like income details, bank and ID requirements. The benefit of a P2P loan is the fast online approval process, which in some cases means the funds will be in your account on the same day.
Both peer to peer lending and crowdfunding provide you with funds. The critical difference between the two is that P2P lending gives you a loan that must be repaid with interest, while crowdfunding gives you a sum of money with no expectation of repayment.
As a borrower, a P2P loan is a regular loan. The difference is that it comes from investors rather than a large financial institution.
That said, you want to be a savvy borrower, so do your homework. You should always check out the investor requirements of the P2P platform you are using before taking out a loan.
You also want to make sure you are informed of your financial position, so you can make the best decisions when it comes to signing off on your loan. Visit our Mozo personal loans hub as a jumping-off point.
Compared to other types of investments peer to peer loans may offer lenders a higher rate of return. Also, a simple P2P platform might make transacting relatively easy and accessible.
Many investors also enjoy the idea of their money going to an individual in need of a loan while also making money themselves.
Like all investments, it is important to decide if peer to peer lending is right for you, as it does come with risks. There is no government guarantee of peer to peer lending, like most investments, so it is solely on the lender if the borrower cannot pay. Most P2P loans are also unsecured.
To protect yourself as an investor, it is essential to make sure the P2P platform is reputable - operating with an Australian financial services license and registered with the Australian Securities and Investments Commission.
In short: Yes. P2P lending operates on a risk-based tier interest rate system, which means that your rate is customised to you, so If you have good credit, you will be rewarded with a low rate.
Borrowers with poor credit can benefit from peer to peer lending. As it is a customised market, although you will be paying more than those with good credit, you may have options that would not be presented to you otherwise.
The website says it calculates interest daily and applies it monthly but it doesn't. it applies it at every payment you make. The borrower statement does not show you when interest is due to be charged it just shows you how much interest was debited from each payment you make.
Read full reviewThe website says it calculates interest daily and applies it monthly but it doesn't. it applies it at every payment you make. The borrower statement does not show you when interest is due to be charged it just shows you how much interest was debited from each payment you make.
Latitude are an honest, open and communicative financial company. After my recent experience, I can only recommend them to everybody who requires secure financial assistance speedily!!
Read full reviewLatitude are an honest, open and communicative financial company. After my recent experience, I can only recommend them to everybody who requires secure financial assistance speedily!!
I wound up thru a broker with Plenti. Big mistake. They tell you there's no early exit fee. Trouble is, you pay admin fees for the life of the loan, which are significant. Early exit fee by proxy, and stealth. Don't go near them. Rate setter was a great co. Once a co lists, it's ALL about greedy boards, and delivery. This co has lost its way from its original mindset. AVOID!
Read full reviewI wound up thru a broker with Plenti. Big mistake. They tell you there's no early exit fee. Trouble is, you pay admin fees for the life of the loan, which are significant. Early exit fee by proxy, and stealth. Don't go near them. Rate setter was a great co. Once a co lists, it's ALL about greedy boards, and delivery. This co has lost its way from its original mindset. AVOID!
