Non-bank personal loans in Australia
Non bank loan requirements can be more relaxed than the Big 4.
We’re reader-supported and may be paid when you visit links to partner sites. We don’t compare all products in the market, but we’re working on it!
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
Compare up to 4 providers
- What is a non-bank and how are they different from banks?
- Why should I apply for a loan with a non-bank lender?
- What kind of non-bank lenders are there?
- How does a non-bank personal loan work?
- Are non-bank lenders safe?
- How can I compare non-bank lenders?
- How can I apply for a non-bank personal loan?
You may have heard of non-bank lenders and may be wondering if the loans they offer are comparable to banks. With non-bank lenders, you may be able to get a competitive rate. They also offer personalised, risk-based loans. Their lending criteria are also more flexible. This allows borrowers with less than perfect credit scores access to personal loans.
What is a non-bank and how are they different from banks?
A non-bank lender is a lender that is not a bank. The most notable difference is that most non-banks (with the exception of credit unions and some neobanks) do not hold a banking licence but are tightly regulated anyway.
Apart from credit unions and some neobanks, most non-banks are not authorised deposit-taking institutions (ADIs). This means that you cannot have current accounts or term deposits with non-bank lenders.
As they aren't ADIs, they are only regulated by the Australian Securities and Investments Commission (ASIC). ADIs, meanwhile, are regulated both by ASIC and the Australian Prudential Regulation Authority (APRA).
In short:
- Non-bank lenders like credit unions and some neobanks function like banks and can accept deposits because they are an ADI.
- Other non-bank lenders, like P2P lenders and alternative lenders, can lend but cannot accept deposits.
Why should I apply for a loan with a non-bank lender?
Once you set aside the technical differences between a bank and a non-bank lender, there are other factors you should take into account.
Non-bank lenders in general tend to be more flexible than banks with their lending criteria. This means that they are more likely to lend to borrowers with less than perfect scores. With non-bank lenders, you're more likely to receive a personalised or risk-based loan. This means that the interest rate you pay is determined by your credit history. If you have a good credit score, your rates will be lower than if you had an average or middling score.
In general, non-bank lenders can potentially offer more competitive rates. This is because these lenders are smaller than traditional banks and don't have as many branches, if at all. This means that they have lower overheads. As a result, they're able to pass on these savings to their customers through competitive rates.
They also offer fast online applications and generally process applications faster than traditional banks.
We've included a breakdown below:
Banks | Non-banks | |
---|---|---|
Loan amounts | Banks may offer larger borrowing amounts for personal loans. How much you can borrow will depend on your income and ability to repay the loan. | This will depend on the lender, but you may not be able to borrow as large a sum of money as with a bank. |
Interest rates | Banks may have higher interest rates. | Mutuals and other non-banks may be able to offer lower and more competitive rates. |
Eligibility | Banks have a strict lending criteria. You may not be eligible if you don't have perfect credit. | Mutuals may be more flexible if you have a good relationship with them. Other non-bank lenders, meanwhile, offer risk-based loans. This allows people with a less than perfect score access to credit. |
Regulations and reputation | Regulated by APRA and ASIC. Banks are well established and their reputations are easy to research. | Mutuals and neobanks are regulated by APRA and ASIC. Other non-bank lenders are regulated by ASIC. Most lenders are legitimate, but you may want to do some extra research on payday lenders. |
Branches | Have numerous physical branches around the country. This makes them easy to access. | Mutuals have physical branches but they may be state- or area-specific. Most other non-bank lenders don't have much of a physical presence, but you can get in touch with them through other means. |
Application process | Generally, applications are lengthier. There may also be more paperwork. | Application process is fast and easy. |
Innovation and service | Banks may be slower to implement and introduce certain features non-bank lenders offer. Their service may also not be as personal as non-banks. | Mutuals have an existing relationship with their members and so offer a level of personal customer service a larger institution may not be able to offer. Likewise, non-banks can offer more personalised customer service because they are smaller. |
What kind of non-bank lenders are there?
There are several types of non-bank lenders. These include:
- Credit unions and building societies. These financial institutions are also known as "mutuals". They are member-owned and not-for-profit. This means that any profits earned are put back into the products and services they offer their members. They offer standard financial products, including personal loans.
- Peer-to-peer (P2P) lenders. P2P lenders facilitate a platform which allows investors to finance a portfolio of personal loans. Your loan will basically be financed by an investor and they will earn interest on what they lend. P2P lenders offer personalised rates based on your credit score.
- Neobanks banks. Neobanks or digital banks operate online, while offering a range of tech-driven services. These banks don't have a physical presence, but focus on technology instead. Neobanks often offer interest rates personalised to your credit score. Some neobanks are also ADIs.
- Alternative lenders. These are small lenders offering personal loans. They also include Small Amount Credit Contracts, or payday loans up to $2,000. Some lenders also offer larger loans up to $5,000 or $10,000. Payday or short term loans come with high fees and charges, and you should compare your other options before applying.
How does a non-bank personal loan work?
A personal loan from a non-bank works just like a personal loan from a bank. The loan will be either secured or unsecured and offer fixed or variable interest rates. The funds are received in a lump sum, and you'll have to pay it back with interest and fees.
Some lenders may also accept a wider variety of security. You can use home equity or a vehicle, but you may also be able to use a term deposit as a guarantee, or even jewellery or art.
Are non-bank lenders safe?
All non-bank lenders are regulated by ASIC. Some may also be regulated by APRA. Because they are regulated, the risk of using a non-bank is limited. With credit unions and some neobanks, they are regulated just as a bank. Additionally, as with a bank, there is a financial claims scheme for ADIs. If you deposit with them, your deposit up to $250,000 is protected.
How can I compare non-bank lenders?
Here's what you need to look out for when comparing.
- Does the lender have any membership requirements? Non-bank lenders like credit unions and building societies will require you to be a member. Membership is easy to apply for and may not cost a lot. Other non-bank lenders don't have membership requirements, but there will be other eligibility requirements.
- What's the interest rate of the loan? The interest rate is an important factor in determining the cost of the loan. It is how much you will be charged for borrowing. A low interest rate means your loan will cost less. But it's not the only cost you need to consider. Keep in mind that while a loan may have low interest, it could have high fees. This will add to the total cost of your loan.
- What are the fees and the comparison rate? Apart from interest rates, you need to look at the comparison rate. The comparison rate is the total cost of the loan, inclusive of fees and interest. Fees include monthly and establishment fees. It does not include other fees which may come with exiting the loan early, or making extra repayments. If those are features you're interested in, make sure to take into account how much it will cost.
- Is the loan secured or unsecured? Depending on whether you want to offer security, you can filter for secured and unsecured loans.
- What are the minimum and maximum borrowing limits? Each lender will set its maximum and minimum borrowing limits. You need to check whether the amount you need to borrow is offered by the lender. How much you can borrow will depend on your income and ability to repay the loan.
- Do they offer the terms you need? If you need a loan for a long term, be sure to check if the lender offers this. Your loan terms will also determine how much your monthly repayments are. With a long term, your monthly repayments will be low but you'll be paying interest for longer. This could hike up the total cost of your loan.
- Do they have multiple repayment options? Does the lender offer you repayment flexibility? Are you able to choose between weekly, fortnightly and monthly repayments? If you're looking at a variable rate loan, look for one that allows you the option to make extra repayments without penalty. This will allow you to pay off your loan sooner.
How can I apply for a non-bank personal loan?
🤔 Work out how much you need to borrow and what you can afford. You can use our personal loan calculator to figure out how much you can afford to borrow.
🔎 Start comparing lenders and loan products. Don't forget to compare interest rates, fees and eligibility criteria. You can use Finder's comparison table.
✅ Select a lender. Click "Go to Site" to be directed to the lender's page, or "More Info" if you want to read about the lender.
🖨️ Organise and prepare the required documentation. This can include identification documents and financial information.
📱 Apply. Most lenders have their applications online.
Matt Corke is Finder’s head of publishing ventures. Prior to this he was head of publishing for Australia, New Zealand and emerging markets. Matt built his first website in 1999 and has been building computers since he was in his early teens. In that time, he has survived the dot-com crash and countless Google algorithm updates.
More guides on Finder
- Why are the CBA and ANZ share prices rebounding?
Shares of the major banks, on average, have lost 16% of their market value in the past month alone.
- The Bank of Mum and Dad: Legal risks and insights
As cost of living pressures rise, more homebuyers are turning to family to help them get onto the property ladder – but at what price?
- Why are the CBA and NAB share prices rebounding?
Shares of the major banks have tumbled 11-18% in the past month.
- It’s official: Buy now pay later debt could wreck your chance of a home loan
APRA has reminded lenders that they have to factor in HECS-HELP and BNPL debts when assessing borrowers.
- World Bank tips growth to halve: Is a market crash coming?
Inflation is rising and will have an impact on your portfolio. Here's how you can position it to remain ahead of the world banks forecasts
- Why are the CBA and Westpac share prices stumbling?
Shares of the major banks have been listless so far this year - ranging from a gain of 3% to a drop of 12% over that period.
- RBA hikes cash rate: Is your lender raising your rate?
These lenders have announced interest rate rises for their home loan customers.
- RBA hikes the cash rate again: How much is it gonna hurt you?
Your home loan repayments are going to rise by 0.5 percentage points.
- RBA raises cash rate to 0.85%
The RBA has raised the cash rate to 0.85%. What this means for homeowners, homebuyers, renters and savers.
Personal Loan Offers
Important Information*
Harmoney Unsecured Personal Loan
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, 5 or 7 years terms.

ANZ Fixed Rate Personal Loan
You'll receive a fixed rate between 6.49% p.a. and 15.99% p.a. ( 7.41% p.a. to 16.84% p.a. comparison rate) based on your risk profile
Apply for up to $50,000 to use for a variety of purposes without needing to add security. Available to self-employed applicants.

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.

SocietyOne Unsecured Personal Loan
You'll receive a fixed rate between 6.95% p.a. and 22.49% 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.