Peer-to-Peer Personal Loans

Peer-to-peer lenders can offer competitive, personalised interest rates with fast applications.

OurMoneyMarket Personal Loan

OurMoneyMarket Personal Loan

From

5.45 %p.a.

fixed rate

From

6.07 %p.a.

comparison rate

Rate dependent on risk profile

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Name Product Interest Rate (p.a.) Comparison Rate (p.a.) Min Loan Amount Loan Term Application Fee Monthly Service Fee Monthly Repayment
OurMoneyMarket Personal Loan

From 5.45% (fixed)
6.07%
$2,001
1 to 7 years
From $250
$0
You'll receive a fixed rate from 5.45% p.a. to 20.99% p.a. based on your risk profile.
A personalised loan from $2,001 to $75,000 that varies based on your credit history and financial situation.

⭐ Finder Exclusive: Apply before 31 January 2022 to secure a discounted rate of 5.45% p.a. (comparison rate: 6.07% p.a.) for the first 12 months on loans over $35,000. T&Cs apply.
Harmoney Unsecured Personal Loan

From 5.35% (fixed)
6.14%
$2,000
3 to 5 years
$575 ($275 for loans of below $5,000)
$0
You'll receive a fixed rate between 5.35% p.a. and 19.09% p.a. based on your risk profile.
Apply for a loan up to $70,000 and repay your loan over 3 or 5 years terms.
Symple Loans Personal Loan

From 5.75% (variable)
6.47%
$5,000
1 to 7 years
from 0% to 5% of the loan amount
$10

You'll receive a variable rate from 5.75% p.a. to 25.99% p.a.

Borrow up to $50,000 and earn 1 Qantas Point for every $1 borrowed.

⭐Special Offer: Earn up to 50,000 Qantas Points with a personal loan from Symple.
Wisr Personal Loan ($5,000 to $30,000)

From 6.49% (fixed)
6.49%
$5,000
3 to 7 years
$0 - Waived Establishment Fee
$0
You'll receive a fixed rate between 6.49% p.a. and 20.95% p.a. based on your risk profile
A loan from $5,000 that charges no fees for extra or early repayments. Keep in mind security is required in some cases.

⭐Special Offer:The $595 establishment will be waived for unsecured personal loans between $5,000 and $30,000. Offer ends 31 January 2022. T&Cs apply.
Wisr Personal Loan ($30,001 to $64,000)

From 6.49% (fixed)
7.11%
$30,001
3 to 7 years
$595
$0
You'll receive a fixed rate between 6.49% p.a. and 20.95% p.a. based on your risk profile
A loan from $30,001 that charges no fees for extra or early repayments. Keep in mind security is required in some cases.

⭐Special Offer:The $595 establishment will be waived for unsecured personal loans between $30,001 and $64,000. Offer ends 31 January 2022. T&Cs apply.
SocietyOne Unsecured Personal Loan

From 6.45% (fixed)
6.45%
$5,000
2 to 5 years
from $0 to $595
$0
You'll receive a fixed rate between 6.45% p.a. and 20.49% p.a. based on your risk profile
A loan from $5,000 to use for a range of purposes. Benefit from no ongoing fees and no early repayment fee.
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Peer-to-peer (P2P) lending is also known as marketplace lending. It is when loans are financed by multiple investors. It cuts out middlemen like banks, building societies and credit unions and takes you directly to the investor. P2P loans feature access to potentially lower rates and comparatively relaxed lending criteria. Some P2P lenders even offer personal loans. 

What is a P2P loan?

A P2P loan is when you borrow money from individual investors. P2P lending sites match investors to borrowers. 

The “lender” acts as a facilitator for the loan and operates the online platform where the applications are made and the matching takes place. It acts as the intermediary between the borrower and investor. The lender charges fees both from the borrower and the investor. 

In return for lending money, the investors may get higher returns compared to what they get from other investments. Borrowers can get lower-interest loans. 

Unlike traditional lenders, P2P lending has a more flexible lending criteria. This means that lenders are more open to funding loans for borrowers with less than perfect credit scores. They do this by offering interest rates personalised to the borrower and their risk profile. Excellent credit borrowers can receive lower rates and average credit borrowers will have access to finance but at a higher interest rate.  

How does P2P lending work?

P2P or marketplace lending takes place on an online platform. Loan requests are made online, and these requests may be matched to investors.  

While P2P lenders match borrowers to investors, they don’t match individual lenders to individual borrowers. Most often, the investor invests in a portfolio of consumer loans facilitated by the lender. 

It is basically an investment or managed fund, with the lender acting as the fund manager. Investors can choose to invest in certain types of loans, for example, personal or business loans, or they are matched to loans that meet their criteria. For instance, loans within a certain interest rate range or loan term.  

P2P lending offers personalised or risk-based loans. At the time P2P lending was introduced in Australia, this form of lending was a novelty. To remain competitive, traditional lenders have responded with their own risk-based loans. They are increasingly offering more competitive rates and innovative technology. 

💲 If you’re looking to borrow, you’ll first have to submit an application to the lender. The lender will evaluate your eligibility by verifying your identity, credit history, employment and financial details. 

Based on your risk profile, the lender will then give you a personalised interest rate. The lower the risk of lending, the better your rate will be. 

After approval, your loan will be funded by one or several investors that choose to take you on. The P2P lender will usually deduct an application fee from the amount transferred. 

💵 If you’re looking to invest, you may be able to choose how your money is used. You could choose to invest in a portfolio of loans or you could fund an individual loan.

You’ll be able to review applications on the website and identify the loans you’d like to fund. You can choose to provide partial or full funding. However, you will not be able to see the borrower’s personal information. 

Once you’ve agreed to fund a loan, the money will be transferred to the borrower. Repayments will be made based on how much of the loan you’ve funded. 

The ins and outs of P2P loans

Government Guarantee

The Government Backed Guarantee on Deposits was set up to protect investments up to $250,000. They do not apply to funds in peer-to-peer lending as it only applies to institutions authorised by the Australian Prudential Regulation Authority (APRA).

What are the benefits and drawbacks of P2P loans?

Like all loans, P2P loans have benefits and drawbacks you need to consider.

For borrowers:

  • You may be able to get a loan at a rate lower than those offered by traditional lenders.
  • The application process is speedy and entirely online. 
  • Most lenders offer lower loan amounts than banks. It is usually up to $35,000 for a personal loan. 
  • The loan may come with fewer features than traditional personal loans.
For investors: 
  • A higher return on funds compared to other forms of investments. 
  • The opportunity to diversify your investments. You can also spread your funds over several loans to minimise your risks.
  • There is no government-backed guarantee on the funds you invest. 
  • It can be a risky investment.

Which lenders offer P2P loans in Australia?

There are a number of P2P lenders in Australia. They offer their own unique product and rate. The table below is a quick guide to Australia’s P2P lending landscape:

Peer-to-peer lenderType of loans offeredLoan amountLoan term

Business loans

$100,000 up to $10,000,000

3 to 5 years

Personal loans

$5,000 to $80,000

3 to 7 years

Personal loans

$5,000 to $50,000

12 to 84 months

Personal loans

$5,000 to $50,000

1 year to 2 years

Business loans

$50,000 to $300,000

2 years and 5 years

Business loans

$30,000 to $500,000

1 to 5 years

Business loans

$10,000 to $5,000,000

12 to 60 months

Personal loans

$5,000 to $30,000

3 to 7 years

How do I compare my options?

Whether you’re a lender or a borrower, there are a number of factors to keep in mind when comparing lenders. We’ve listed them below:

Compliance

✔️ Before either borrowing or investing, you should check the credibility of the lender. 
They are generally required to hold an Australian financial services (AFS) licence. For consumer loans, like personal loans, they should also hold a credit licence. 
These details should be listed on the site. They may also be affiliated with banks or services. 
You can check if they have an AFS and credit licence here.

Rates

✔️ P2P lenders generally offer rates lower than those offered by banks. 
With risk-based pricing, your good borrowing history will be rewarded with a lower rate. If your credit history isn’t up to scratch, you’ll either receive a higher rate or have your application rejected. 
You can receive a rate estimate without affecting your credit score. 

✔️ You should look into how the interest rate is set and who decides the rate. 
You should also look into whether your return on investment is higher and worth the risk. 
If it isn’t higher than other forms of investment, then you may be better off considering another lender. 

Fees

✔️ Apart from paying interest, you will also have to pay fees. This can include establishment and monthly fees. These fees should be included in the comparison rate. The comparison rate is the total cost of the loan, interest and fees included. You should make yourself aware of all fees involved as this will increase the cost of the loan. 

✔️ While you’re receiving a return on investment, you will also have to pay the operator fees. You should look into whether they charge for you to invest, for handling repayments and for you to access your money early. 

Loan terms and amounts

✔️ How long do you have to repay the loan? Are these terms adequate for you? You should check if you’re able to borrow for as long as you need it. 
P2P lenders may not offer loan amounts as high as traditional lenders. You should consider if the amounts they offer are adequate for your needs. 

Reputation

✔️ The lender’s reputation should form part of your comparison. 
You may want to read online customer reviews.
You should also look into how easy it is to contact the lender. This is useful in case of emergencies. 
You should also check how transparent the lender is with its fee and rate information. 

✔️ You should consider the lender's track record, including how it assesses borrower risk. 
How lenders assess this risk can vary from platform to platform. 
If a lender has a high number of defaults or late repayments, this could mean it has a poor credit-assessment process. 

Features

✔️ What features are you looking for with a personal loan? Do you want a secured or unsecured loan? 
Are you looking for a fixed rate or variable rate loan? 
Are there any other additional features you would like, for instance, the option to make early repayments?

✔️ You should take the time to read the product disclosure agreement to understand what you’re getting into. 
Some of the features you may want to consider include the following: 
Cooling-off period if you change your mind. If you do, can you get your money back? Investment recovery. If the borrower defaults, how will the lender recover your investment? Who pays for the expense of the recovery? Does the lender have adequate mechanisms in place if the platform fails? Will you be able to recover your money, and if so, how much of it? 

Repayments

✔️ The first thing you need to consider is whether you can afford the loan. To know this, you’ll have to look into how much your repayments cost. 
You can use a personal loan calculator to figure out the cost. 
You’ll also have to consider how often the repayments will have to be made (e.g. fortnightly, weekly or monthly). 
Ask yourself if it fits your budget or if it will cause financial difficulty. 

✔️ How long will it take for a return on investment? Are the terms too long for you? 
If you invest in multiple loans with varying lengths, it may be difficult to track and predict returns. You will have to account for this complexity. 

Requirements

✔️ As a borrower, you will have to look into whether you’re eligible to apply for the loan. 
✔️You also want to make sure the lender has guidelines to ensure unscrupulous investors aren’t part of the network. 
Check the lender’s investor requirements to see what type of people you’ll be borrowing from. 

✔️ All lenders are required to perform background checks on borrowers. 
That said, you should look into whether the lender’s criteria is too loose. This could increase the risk of your investment. 

Risk

✔️ You should look into whether the lender is too relaxed about borrower eligibility. 
There have been instances where overseas lenders have failed due to a high number of defaulted loans. They failed because they started lending to high-risk borrowers. 
You want to make sure you go with a lender that doesn’t engage in high-risk borrowing behaviour.

Which P2P loan is the best?

There isn’t a single loan that can be considered the “best” personal loan. What’s best for one borrower may not be the best for another. The best P2P loan for you will depend on your needs and circumstances. For instance, you may prioritise some aspects of the loan, such as cost, over other aspects, such as features. In instances where your score isn’t perfect, you’ll have to look for the best loan from the options available to you. 

We’ve created a list of things to consider when looking for the best personal loan:  

  • Does this loan fit my budget? Look at the interest rate, but also the comparison rate to determine the true cost of the loan. If it fits comfortably within your budget, the loan may be worth considering. A loan with low rates and fees would be a good find. 
  • Do the loan features meet my needs? Consider whether the loan is secured or unsecured. Look whether the interest is fixed or variable. Are there any other additional features? Once you understand the features, you can determine whether the loan is suitable. 
  • Do the loan terms meet my requirements? Is the loan term too long or too short? Will a longer term make the loan more expensive? Will you have difficulty meeting repayments if the term is too short? 
  • Is the loan amount enough? Does the loan amount cover your needs or will you need a larger loan? 
  • Can I comfortably make my repayments? Is the repayment cycle aligned with your pay cheque? Will you be left out of pocket or scrambling to make your repayments? 
  • Does the loan require an asset as security? Do you have an asset to offer as security? Are you comfortable with the risk of a secured loan? Would you like lower rates by offering security? If you don’t have an asset to offer, you should consider an unsecured loan. 

Should I apply for a P2P loan with bad credit?

Before you apply for a loan, you need to know what your credit score is. You can check your score here. This will give you an idea of where you stand on the credit scale. You could have a few negative marks, but there may be a chance you’ll fall into one of the lender’s brackets. 

That said, you need to thoroughly research your lenders. Some lenders offer loans based on a “best”, “good” and “average” scale. Other lenders have tiers ranging from 1 to 5. This can range from exceptional to excellent, very good, good and average.

Lenders ultimately rely on information supplied by credit reporting agencies. In Australia, there are 3 main agencies: Experian, Equifax Australia and illion. The scores can range from 0 to 1,000 for Experian and illion, and from 0 to 1,200 for Equifax Australia. Because of the difference in scales, your score could differ between credit score providers. Lenders like SocietyOne base their calculations on scores provided by Experian. If you know where you stand on Experian’s scale, and if you fall into one of the lender’s tiers, you could be eligible even if you have some negative listings. 

Checking your score before applying can help you determine whether you’re eligible. If you don’t fall into the lender’s eligibility categories, you shouldn’t apply. All credit applications are listed on your credit report. If a lender rejects you, this can affect your credit score, which will make it harder to apply for credit in the future. 

If you have bad credit and need a personal loan, you should work towards improving your score. Your credit score is updated every month. What you do to improve it now will have an impact in the long run. Some of the steps you can take to improve your credit score include the following: 

  • Paying all your bills on time 
  • Paying off your debt 
  • Lowering your credit card limit

By demonstrating that you’re willing to engage in positive credit behaviours, you can increase the lender’s confidence in you.

Frequently asked questions

More guides on Finder

    Personal Loan Offers

    Important Information*
    Logo for Harmoney Unsecured Personal Loan
    Harmoney Unsecured Personal Loan

    You'll receive a fixed rate between 5.35% p.a. and based on your risk profile.
    Apply for a loan up to $70,000 and repay your loan over 3 or 5 years terms.

    Logo for ANZ Fixed Rate Personal Loan
    ANZ Fixed Rate Personal Loan

    You'll receive a fixed rate of 8.99% p.a.
    Apply for up to $50,000 to use for a variety of purposes without needing to add security. Available to self-employed applicants.

    Logo for NAB Personal Loan Unsecured Fixed
    NAB Personal Loan Unsecured Fixed

    You'll receive a fixed rate between 6.99% p.a. and 18.99% p.a. ( 7.91% p.a. to 19.83% p.a. comparison rate) based on your risk profile
    Borrow from $5,000 to $55,000, with 1 years to 7 years loan terms available. This loan comes with no fees for extra repayments and no early exit fees.

    Logo for SocietyOne Unsecured Personal Loan
    SocietyOne Unsecured Personal Loan

    You'll receive a fixed rate between 5.95% p.a. and 19.99% p.a. based on your risk profile
    A loan from $5,000 to use for a range of purposes. Benefit from no ongoing fees and no early repayment fee.

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    18 Responses

      Default Gravatar
      ChristopherMarch 29, 2019

      Hi Team i would like to apply for a combine ptop lone with my wife i have high credit score and 4 month’s working& Wife has average credit score but 2 pluss years in job is this possible please.

        Default Gravatar
        NikkiMarch 30, 2019

        Hi Cristopher

        Thanks for getting in touch! To apply for a peer-to-peer personal loan, check the eligibility criteria of the loan before applying to increase your chances of approval. Read up on the terms and conditions and product disclosure statement and contact the bank should you need any clarifications about the policy.

        Our page shows a list of P2P lenders. I also suggest reading the part on the page that says “How do I compare my options?” to help you decide which lender to go for!

        Hope this was helpful. Don’t hesitate to message us back if you have more questions.

        Best,
        Nikki

      Default Gravatar
      SammyOctober 14, 2016

      Hi Team,

      I would like to invest in a P2P loan.

      Is this possible if I am not an institution?

      Do I need to be a ‘sophisticated’ investor?

      If not, which P2P lenders will allow me to make an investment?

      Thanks!
      Sammy

        Avatarfinder Customer Care
        ElizabethOctober 17, 2016Staff

        Hi Sammy,

        Some P2P lenders require to you be a sophisticated investor while others allow non-sophisticated investors to lend. Here are the requirements for some prominent P2P lenders:

        – SocietyOne: Need to be a sophisticated investor
        – RateSetter: Individuals over the age of 18 can lend from just $10
        – MoneyPlace: Currently need to be a wholesale or institutional investor, but retail investors are coming soon
        – Harmoney: Currently only sophisticated investors can apply, opening to retail investors soon
        – Marketlend: Open to retail investors

        Hope this helps,

        Elizabeth

        Default Gravatar
        JJuly 8, 2017

        Do you have a comparison page for investors? Specifically I want to know which platform and investment has the lowest default rate.

        Default Gravatar
        DanielleJuly 10, 2017

        Hi J,

        Thanks for your inquiry.

        I believe when you said investor, you mean you’re looking for business loans. If this is correct, please check our list of business loans. On this page, you’ll read more details about business loans, how to apply, and compare your options.

        I hope this helps.

        Cheers,
        Danielle

      Default Gravatar
      IanJune 16, 2015

      I am looking at investing in buying a 20 year lease on a Holiday Park which has excellent proven turnover of a million plus per annum and approx six to seven hundred thousand profit after running costs and GST. The problem is that they are asking for $1,250 000.00 up front. I am unable to borrow that much from a bank as I don’t have that much security to cover it. Do you know of any business that could assist me in obtaining this amount of money. I would be asking for a 5 to 7 year loan to pay it back with interest of course.

      Thanks
      Ian

        Avatarfinder Customer Care
        ElizabethJune 17, 2015Staff

        Hi Ian,

        Thanks for your question.

        You can take a look at our business loans guide that also provides you with a few options but the maximum loan amount from the lenders available is $500,000. While you might not be able to provide security, you still might want to get in touch with banks, if you can provide a business proposal they may be able to offer you financing. You can also think about getting in touch with a business loan broker to help you source financing. The business loan guide provided in the link may offer some more guidance.

        I hope this has helped.

        Thanks,
        Elizabeth

      Default Gravatar
      josephApril 15, 2015

      am joseph from kenya.my question is am i eligible for a loan of 500$ or its only citizens of australia who qualify alone.
      Regards

        Avatarfinder Customer Care
        ElizabethApril 16, 2015Staff

        Hi Joseph,

        Thanks for your question.

        You may be eligible for a loan from peer-to-peer lenders such as Society One, as they simply require you to hold an Australian bank account and be over the age of 21. For your other loan options, you can take a look at our guide to loans for temporary residents.

        I hope this has helped.

        Thanks,
        Elizabeth

      Default Gravatar
      ristoFebruary 24, 2015

      I need to borrow $25000 to settle my separation..since my separation i took on all the family debt and in 5 yrs have paid off a 26000 personal loan and credit cards to 36000, my credit rating is below average but i only wish to borrow this money till late July 2015 4mths because i can them access my superannuation which i have $390000.

        Avatarfinder Customer Care
        ShirleyFebruary 25, 2015Staff

        Hi Risto,

        Thanks for your question.

        If you would like to discuss your eligibility or options, please get in touch with a lender from the peer-to-peer loan products we have compared.

        We also have a guide to bad credit personal loans that may assist you. Before applying, please ensure that you meet all the eligibility criteria and read through the details of the needed requirements as well as the relevant Product Disclosure Statements/Terms and Conditions when comparing your options before making a decision on whether it is right for you.

        Cheers,
        Shirley

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