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Money lenders

Money lenders provide financial services ranging from personal loans to home and business loans.

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By

Bria Horne

Updated

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A money lender can be a financial institution such as a bank, or it can be an individual or a public or private group. They provide financial services such as home loans, personal loans, business loans and credit cards, etc. In return for their services, money lenders expect the loan to be repaid inclusive of interest or fees they charge for lending.

Are you struggling financially?


If you're struggling financially and would like to speak to someone for free financial advice, information and assistance you can call the Financial Counsellors hotline on 1800 007 007 (open from 9:30am to 4pm, Monday to Friday). If you are suffering financial problems related to the coronavirus pandemic you may be eligible for additional support.

⚠️ Warning about Borrowing

payday-warningDo you really need a loan today?*

It can be expensive to borrow small amounts of money and borrowing may not solve your money problems.

Check your options before you borrow:

  • For information about other options for managing bills and debts, ring 1800 007 007 from anywhere in Australia to talk to a free and independent financial counsellor
  • Talk to your electricity, gas, phone or water provider to see if you can work out a payment plan
  • If you are on government benefits, ask if you can receive an advance from Centrelink: Phone: 13 17 94

The Government's MoneySmart website shows you how small amount loans work and suggests other options that may help you.

* This statement is an Australian Government requirement under the National Consumer Credit Protection Act 2009.

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Money lenders comparison

1 - 5 of 5
Updated regularly
Name Product Maximum loan amount Term of Loan Turnaround time Arrears Fee Costs Fortnightly Repayment (for $1500 Loan)
Sunshine Short Term Loans
Sunshine Short Term Loans
$2,500
9-20 weeks
30 minutes - conditions apply
$35
20% of loan amount + 4% of loan amount each month
$396
A small loan up to $2,500 that you repay over 9-20 weeks. Loans approved and funded in as little as 30 minutes. Centrelink must not be your primary income
Go to site
More Info
Fundo Small Loan
Fundo Small Loan
$2,000
13 to 26 weeks
Same day - conditions apply
$20
20% of loan amount + 4% of loan amount each month
$396
Borrow up to $2,000 and pay it off over 20 weeks. Same day approval for eligible borrowers.
Go to site
More Info
Fair Go Finance Small Loan
Fair Go Finance Small Loan
$2,000
3 to 12 months
24 to 48 hours
$35
Establishment Fee of $60 – $400
$354
A small loan between $500 and $2,000 that can be funded in 24 hours.
Go to site
More Info
Nimble Small Loan
Nimble Small Loan
$2,000
62 days to 9 months
1 hour - conditions apply
$15
20% of loan amount + 4% of loan amount each month
$396
A loan up to $2,000 with terms up to 62 days to 9 months. Centrelink cannot be your primary source of income.
Go to site
More Info
Safe Financial Small Loan ($500 to $2000)
Safe Financial Small Loan ($500 to $2000)
$2,000
13 to 50 weeks
Same day - conditions apply
$35
20% establishment fee + 4% monthly.
$396
Borrow from $500 to $2,000 with same-day funding and no early repayment fees.
Go to site
More Info
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1 - 6 of 6
Updated regularly
Name Interest Rate (p.a.) Comp. Rate (p.a.) Application Fee Monthly Fee Monthly Repayment
OurMoneyMarket Personal Loan - Excellent Credit
ExclusiveFixed1 - 7 Years $2,001 - $75,000
Interest Rate (p.a.)
6.57%
to 18.99%
Comp. Rate (p.a.)
6.57%
to 21.78%
Application Fee
$0
Monthly Fee
$0
Monthly Repayment
$613.62
Go to siteMore Info
Finder Exclusive: For a limited time only - Apply by December 15th 2023 and if approved, OurMoneyMarket will waive the establishment fee for Excellent Credit Customers.
NOW Finance No Fee Unsecured Personal Loan
Finder award winnerFixed18 Months - 7 Years $5,000 - $50,000
Interest Rate (p.a.)
6.75%
to 26.95%
Comp. Rate (p.a.)
6.75%
to 26.95%
Application Fee
$0
Monthly Fee
$0
Monthly Repayment
$615.26
Go to siteMore Info
OurMoneyMarket Personal Loan
Fixed1 - 7 Years $2,001 - $75,000
Interest Rate (p.a.)
6.57%
to 18.99%
Comp. Rate (p.a.)
7.19%
to 21.78%
Application Fee
1.50% - 6%
min. $250
Monthly Fee
$0
Monthly Repayment
$627.42
Go to siteMore Info
Harmoney Unsecured Personal Loan
Finder award winnerFixed3 - 7 Years $2,000 - $70,000
Interest Rate (p.a.)
5.76%
to 24.03%
Comp. Rate (p.a.)
6.55%
to 24.98%
Application Fee
$275 - $575
Monthly Fee
$0
Monthly Repayment
$623.70
Go to siteMore Info
Latitude Variable Rate Personal Loan
Variable2 - 7 Years $5,000 - $70,000
Interest Rate (p.a.)
9.49%
to 29.99%
Comp. Rate (p.a.)
10.93%
to 31.83%
Application Fee
$395
Monthly Fee
$13
Monthly Repayment
$666.22
Go to siteMore Info
OurMoneyMarket Secured Personal Loan
Fixed1 - 7 Years $2,001 - $75,000
Interest Rate (p.a.)
6.57%
to 18.99%
Comp. Rate (p.a.)
7.19%
to 21.78%
Application Fee
1.50% - 6%
min. $250
Monthly Fee
$0
Monthly Repayment
$627.42
Go to siteMore Info
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Showing 6 of 6 results
1 - 19 of 19
Updated regularly
Name Interest Rate (p.a.) Comp. Rate (p.a.) Application Fee Monthly Fee Monthly Repayment
OurMoneyMarket Car Loan - Excellent Credit
ExclusiveFixed1 - 7 Years $2,001 - $75,000
Interest Rate (p.a.)
6.57%
to 18.99%
Comp. Rate (p.a.)
6.57%
to 21.78%
Application Fee
$0
Monthly Fee
$0
Monthly Repayment
Go to siteMore Info
Finder Exclusive: Apply by December 15th 2023 and if approved, OurMoneyMarket will waive the establishment fee for Excellent Credit Customers.
OurMoneyMarket New Car Loan
Fixed1 - 7 Years $2,001 - $75,000
Interest Rate (p.a.)
6.57%
to 18.99%
Comp. Rate (p.a.)
7.19%
to 21.78%
Application Fee
$250
min.
Monthly Fee
$0
Monthly Repayment
Go to siteMore Info
loans.com.au - New - Variable Rate Special
Variable3 - 7 Years $5,000 - $150,000
Interest Rate (p.a.)
6.24%
Comp. Rate (p.a.)
7.36%
Application Fee
$400
Monthly Fee
$8
Monthly Repayment
Go to siteMore Info
NRMA New Car Loan
Fixed1 - 7 Years $5,000 - $130,000
Interest Rate (p.a.)
7.29%
to 16.99%
Comp. Rate (p.a.)
8%
to 17.77%
Application Fee
$499
Monthly Fee
$0
Monthly Repayment
Go to siteMore Info
Note: Take out a loan for an eligible electric vehicle and receive a 1.5% discount on your personalised interest rate (interest rates start from 5.49% p.a. and comparison rates from 6.19% p.a.)
CarMoney New Car Loan
ExclusiveFixed18 Months - 7 Years $5,000 - $150,000
Interest Rate (p.a.)
6.89%
to 15.09%
Comp. Rate (p.a.)
8%
to 16.16%
Application Fee
$400
Monthly Fee
$8
Monthly Repayment
Go to siteMore Info
Finder Exclusive: Apply for and settle a car loan and get a $200 cashback. Limited time offer. Terms and conditions apply.
Stratton Finance New Car Loan
Fixed1 - 7 Years $10,000 - $300,000
Interest Rate (p.a.)
6.52%
to 18%
Comp. Rate (p.a.)
6.95%
to 23%
Application Fee
$395
Monthly Fee
$0
Monthly Repayment
Go to siteMore Info
You'll receive a fixed rate from 6.52% p.a. depending on the lender you are approved with.
Apply for up to $300,000 and use cash or trade in a vehicle to use as a deposit. Optional balloon payment available.
RACV New Car Loans
Fixed1 - 7 Years $5,000 - $150,000
Interest Rate (p.a.)
7.29%
to 16.99%
Comp. Rate (p.a.)
8%
to 17.77%
Application Fee
$499
Monthly Fee
$0
Monthly Repayment
Go to siteMore Info
You'll receive a fixed rate from 7.29% p.a.
A larger loan of $5,000 or more to help you buy a new or used car. 5-hour pre approval available and no ongoing fees.
loans.com.au - New - Fixed Rate Special
Fixed3 - 7 Years $5,000 - $150,000
Interest Rate (p.a.)
7.09%
Comp. Rate (p.a.)
8.21%
Application Fee
$400
Monthly Fee
$8
Monthly Repayment
Go to siteMore Info
You'll receive a fixed rate of 7.09% p.a. based on your risk profile
Finance a new car and benefit from features such as fast approval, no ongoing fees and an optional balloon payment.

OurMoneyMarket Used Car Loan - No Vehicle Age Limit
Fixed1 - 7 Years $2,001 - $75,000
Interest Rate (p.a.)
6.57%
to 18.99%
Comp. Rate (p.a.)
7.19%
to 21.78%
Application Fee
$250
min.
Monthly Fee
$0
Monthly Repayment
Go to siteMore Info
NRMA Used Car Loan
Fixed1 - 7 Years $5,000 - $130,000
Interest Rate (p.a.)
8.49%
to 16.99%
Comp. Rate (p.a.)
9.21%
to 17.77%
Application Fee
$499
Monthly Fee
$0
Monthly Repayment
Go to siteMore Info
You'll receive a fixed rate from 8.49% p.a.
Finance a used car with NRMA and benefit from a fixed rate term and no monthly fees. Pre-approval available within 5 business hours.
CarMoney Used Car Loan
Fixed18 Months - 7 Years $5,000 - $150,000
Interest Rate (p.a.)
6.2%
to 15.75%
Comp. Rate (p.a.)
6.71%
to 16.18%
Application Fee
$399
Monthly Fee
$0
Monthly Repayment
Go to siteMore Info
Stratton Finance Used Car Loan
Fixed1 - 7 Years $10,000 - $300,000
Interest Rate (p.a.)
6.52%
to 18%
Comp. Rate (p.a.)
6.95%
to 23%
Application Fee
$395
Monthly Fee
$0
Monthly Repayment
Go to siteMore Info
You'll receive a fixed rate loan from 6.52% p.a. with a comparison rate of 6.95% p.a.
A used car loan of up to $300,000 with quick approval times and balloon payment options.
RACV Used Car Loans
Fixed1 - 7 Years $5,000 - $150,000
Interest Rate (p.a.)
8.49%
to 16.99%
Comp. Rate (p.a.)
9.21%
to 17.77%
Application Fee
$499
Monthly Fee
$0
Monthly Repayment
Go to siteMore Info
You'll receive a fixed rate from 8.49% p.a.
Benefit from no ongoing fees, 5-hour approval and a 21-day satisfaction guarantee. Interest rate discounts for members.
loans.com.au - Variable Rate Used Car < 3 years
Variable3 - 7 Years $5,000 - $150,000
Interest Rate (p.a.)
7.74%
Comp. Rate (p.a.)
8.85%
Application Fee
$400
Monthly Fee
$8
Monthly Repayment
Go to siteMore Info
loans.com.au - Variable Rate Used Car < 5 years
Variable3 - 7 Years $5,000 - $150,000
Interest Rate (p.a.)
7.74%
Comp. Rate (p.a.)
8.85%
Application Fee
$400
Monthly Fee
$8
Monthly Repayment
Go to siteMore Info
loans.com.au - Fixed Rate Used Car < 3 years
Fixed3 - 7 Years $5,000 - $150,000
Interest Rate (p.a.)
8.09%
Comp. Rate (p.a.)
9.2%
Application Fee
$400
Monthly Fee
$8
Monthly Repayment
Go to siteMore Info
loans.com.au - Fixed Rate Used Car < 5 years
Fixed3 - 7 Years $5,000 - $150,000
Interest Rate (p.a.)
8.29%
Comp. Rate (p.a.)
9.4%
Application Fee
$400
Monthly Fee
$8
Monthly Repayment
Go to siteMore Info
loans.com.au - Fixed Rate Used Car Loan (6 to 7 years)
Fixed3 - 7 Years $5,000 - $150,000
Interest Rate (p.a.)
9.09%
Comp. Rate (p.a.)
10.2%
Application Fee
$400
Monthly Fee
$8
Monthly Repayment
Go to siteMore Info
loans.com.au - Fixed Rate Used Car Loan (8+ years)
Fixed3 - 7 Years $5,000 - $150,000
Interest Rate (p.a.)
12.79%
Comp. Rate (p.a.)
13.9%
Application Fee
$400
Monthly Fee
$8
Monthly Repayment
Go to siteMore Info
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Showing 19 of 19 results

How do money lenders work?

Money lenders work by offering money with the expectation that you will repay them within a given timeframe. This is known as the loan term – it's how long you have to repay the loan.

During this time, they will expect regular repayments to be made. These payments will include the total amount borrowed and charges such as interest or fees. These repayments are incremental and will be broken down into chunks.

Interest is what you will be charged for borrowing money. It is usually presented as a percentage of the total loan amount. Some loans have fixed interest rates, while others have variable interest. Lenders may also charge fees. These may include establishment fees and annual or monthly fees. Establishment fees cover the cost of opening up a loan account, while annual or monthly fees cover the cost of maintaining the account. There may be other fees too, such as transaction fees.

Money lenders can lend the money upfront, providing the loan funds in one go. Or they may provide finance as needed, in what is called revolving credit.

Depending on the loan, lenders may also require loan security. This can be either home or business equity, or a vehicle.

What are the types of money lenders?

  • Traditional banks. Your everyday savings bank will offer a variety of loans for you to choose from. All banks are regulated by both ASIC and APRA. The lending criteria for banks is generally strict. You will need good credit to apply with them. Some of the loans offered by traditional banks include personal loans, home loans, business loans and lines of credit. With large institutions like banks, you may be able to get large loans.
  • Neobanks. Neobanks or digital banks operate exclusively in the online space, unlike traditional banks. You can access their services through an app on your smartphone. They are regulated by APRA and ASIC, same as traditional banks. The difference is that they don't have physical infrastructure, like bank branches. This means that they also have lower overheads, allowing them to provide competitive interest rates or no or low fees. They may not offer loans as large as traditional banks.
  • Nonbank lenders. This is a blanket term for a large number of lenders. They include mutuals and alternative lenders like peer-to-peer and independent lenders.
    • Mutuals. These include building societies and credit unions. They are regulated by both ASIC and APRA. Lending amounts are usually smaller than traditional banks. If you have a good relationship with your mutual, an average credit score may not be an impediment.
    • Alternative lenders. These include peer-to-peer and independent lenders. They are mostly regulated by ASIC. Lending amounts may not be large, but their lending criteria is more flexible. They often offer personalised rates and risk-based loans, opening up the lending space for people with less-than-perfect credit.
    • Dealerships. You can finance the purchase of new or used vehicles or equipment directly from a dealership.
  • Short-term lenders. Short-term or payday lenders offer small loans with short loan terms. Loans can be up to $2,000, $5,000 or $10,000. While payday loans are highly regulated, they are an expensive form of finance. They are also not a long-term financial solution and should only be used in financial emergencies.
  • Buy now, pay later services. With this service, you can make interest-free purchases and pay in instalments. Many retailers now tie up with buy now pay later service providers. This allows them to offer their customers the option to break down their repayments into smaller, more manageable chunks. There are also buy now pay later services that let you pay your bills in instalments.

Brokers vs lenders

While easy to confuse, a broker facilitates or negotiates the loan with the lender on behalf of the borrower. They are a third party or intermediary, acting on behalf of the borrower. A broker can be an individual or an institution. They don't lend the money, and they work on commission.

What to check before you borrow money

Before you borrow money, there are a number of things you should check:

  • Lender's licence. All lenders must be licensed with ASIC. You can look up the lender on ASIC Connect's Professional Register to confirm the lender is licensed.
  • The credit guide. All lenders must give you a document which has their Australian credit licence number, contact details, all fees and charges, details of your right to complain or their external dispute resolution scheme. They should also give you a quote for providing credit assistance.

How to choose a money lender

Keep in mind the following factors when looking for a lender:

  • Lender's reputation. Apart from the lender's licence, you should also consider the lender's reputation. Details such as brand, business longevity and customer experience reviews are some of the things to consider when choosing a lender.
  • Suitability of loan. The loan you're applying for should be suitable to your needs – for instance, don't apply for a car loan when you need the funds to pay for medical bills. Loans come with restrictions on how you can use the funds, so it's important you check if it's suitable for your purpose.
  • Loan amount and efficiency. Before applying, you should check if the lender offers the amount you need. Lenders have minimum and maximum borrowing amounts, which will give you an indication of whether the loan you're looking at meets your needs. You should also consider whether the lender will provide the funding when you want it. If you want a loan in 48 hours, applying to a lender that doesn't provide funding within that timeframe will be unsuitable. It would be a waste of time if you apply for a loan and then find out you won't be able to receive the funds when you need them.
  • Cost. You should make sure you know how much the loan will cost before you apply. You should take into account the lender's rate and any fees they will charge. You should also be aware of the difference between fixed and variable interest rates and how they will affect your repayments. Apart from the interest rate, you should also consider the comparison rate. This is how much the loan will cost inclusive of interest and fees. Comparing both the interest and comparison rates will help you understand the overall cost of the loan. You should also check if the lender requires an asset as loan security.
  • Affordability. Apart from working out how much a loan costs, you should also look into whether you can afford it. You should only apply for a loan if it sits comfortably in your budget. If you are likely to have trouble affording the repayments, you shouldn't apply. Lenders are obliged to lend only to borrowers who can afford it, so if it's an unaffordable loan you're applying for, your application will get rejected.
  • Eligibility. When comparing lenders, you should shortlist loans you're eligible to apply for. All lenders have their minimum requirements, so it's important to check if you meet them. If you find an affordable loan but don't meet the eligibility requirements, your application will be rejected.
  • Loan term. This is how long you have to pay back the loan. It could range from a few months to several years. Your repayment schedule will be based on your loan term, so you should make sure you're able to repay the loan within that term. Additionally, you may find that with a longer term your monthly repayments may be smaller. But you will also be paying interest and fees on those additional months, so that will drive up the overall cost of your loan.
  • Loan features. Additional features such as online account management, customer support, ATM cards and additional sub-accounts for revolving credit might be features you're looking for. You should take these into account during your comparison.

What should I consider before borrowing money?

  • Disreputable money lenders and loan sharks. Unfortunately, there are disreputable lenders that offer what appear to be attractive rates or financing for bad credit applicants. You should be wary of any offer that seems too good to be true. It's best to check if the lender is reputable and what their history is. You should also be wary of loan sharks who charge extremely high interest for desperate borrowers. You should check the lender's website and make sure they're a reputable company. Also check if they're registered with ASIC. Plus, they should be easy to contact.
  • Getting into debt you cannot afford. Check the cost of the loan and make sure you can afford it. You should be able to comfortably include your repayments in your budget. You should also avoid borrowing more than you need.
  • Multiple applications. Every loan application shows up on your credit report. Several applications within a short period can have a negative impact on your credit score. This can make it harder for you to get a loan in the future. Select a single loan and lender that you're eligible for and that suits your needs and apply with them.
  • Long-term repercussions and legal issues. Once you sign a loan agreement, you are bound to its conditions. You will have to pay the loan and all the fees. Keep in mind that for unsecured loans, the lender can initiate legal proceedings against you if you don't repay the loan. It can also report the debt to a credit reporting body like Equifax and use the services of a debt collector. With secured loans, your loan security can be repossessed by the lender if you fail to make your repayments.

    Frequently asked questions

Picture: Shutterstock

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