Non-bank lenders can offer an alternative solution when you're in need of personal finance. If a bank isn't offering the product you need or if your application is denied, loans from non-banks are worth considering. Non-banks include independent lenders, credit unions and building societies, who thanks to their small size compared to a bank, are able to provide more personalised service to help with your personal loan.
RateSetter Unsecured Personal Loan - 3yr Variable
RateSetter Unsecured Personal Loan - 3yr Variable
From
6.89 %p.a.
variable rate
From
8.89 %p.a.
comparison rate
Get a personalised comparison rate based on your credit score
100% confidential application
RateSetter Unsecured Personal Loan - 3yr Variable
RateSetter offers this unsecured personal loan with a fixed or variable rate. Receive a tailored interest rate from 6.89% p.a. based on your risk profile.
Here are some Non Bank Personal Loans you could apply for
Updated November 14th, 2019
How does a non-bank personal loan work?
You can take out a personal loan for a number of reasons, including buying a car, taking a holiday or undertaking home renovations. This type of financing is typically given in one lump sum with the expectation that it be paid back to the lender over a pre-determined amount of time. Interest is applied in the same way that a home loan is, although generally at a higher rate.
Personal loans from non-bank will offer the same features as a bank, including flexible repayment schedules and competitive variable or fixed interest rates. You may find different personal loan offerings from non-bank lenders, such as secured personal loans that let you use a term deposit or jewellery as a guarantee, or car loans for a used car. It’s important to note that credit unions and building societies are authorised deposit-taking institutions, so they are approved by the Australian Prudential Regulation Authority.
You’ll find that you can borrow the same loan amount as the big banks, along with the same loan terms.
MoneyPlace is a non-bank lender offering interest rates based on your risk profile.
Some of the benefits non-bank lenders can offer
When you opt for an alternative lending solution you open yourself up to a new world of features and benefits, some of which include:
Innovative lending solutions. Smaller lenders can offer innovations that larger lenders may take longer to implement – loan applications using social media, loans secured with jewellery or term deposits, or funds that can be transferred to you within an hour of approval.
Savings. Some lenders such as credit unions are not run for profits, and customers of the bank are all shareholders. Any profits that are made are put back into the products which then translate to savings.
Personal customer service. Many credit unions and building societies have histories rooted in local communities and organisations, and with them now continuing to operate in local communities, they can offer a level of personal customer service which may not be possible for larger financial institutions.
Sorting through your non-bank lender options
You have a few options available to you when it comes to lenders if you're looking outside of the banks:
Credit unions and building societies. These are financial institutions that are member-owned and not run for profit, meaning any profits that are earned are put directly back into products and services. Standard financial products are usually on offer from these institutions, including personal loans.
Standalone lenders. Smaller lenders may specialise in personal loans of all sizes. These include Small Amount Credit Contracts, also referred to as payday loans, and larger loans up to $5,000 or even loans up to $10,000.
Dealerships. If you're purchasing a car you may consider financing direct from the dealership. This is referred to as dealership financing and involved you taking out a specific loan product.
There are a number of different institutions of varying types to consider when you need the security of a personal loan. You should carefully compare their features to find the one that will give you the most benefit. Keep these points in mind as you are doing your comparisons:
The financial institution. It’s important to note that if you intend to apply for a loan from a credit union or building society, you will most likely need to be a member or a shareholder.
Interest rates. Look at the different interest rates carefully and make sure that they are in line with what other lenders are offering. You may find some that are able to offer you a fixed rate personal loan. Although the rate might be a bit higher, this is something to consider if you need the security of a fixed repayment schedule.
Fees. Fees weigh heavily in the overall cost of a personal loan to the borrower. There are application fees to consider, monthly and annual plus other less obvious such as settlement or exit fees. Use a personal loan calculator to help you analyse the fees.
Are there any risks?
A non-bank lender may not have the same amount of funding or capital adequacy as a big bank. They also may not have the same technology and facilities that the big banks do, meaning a lack of branches and ATMs across Australia.
While this something to take into your comparison, be mindful that to be a customer of a credit union, you need to be a shareholder of that particular credit union. So whenever the credit union returns its profits to its shareholders, the returns are essentially going to you in the form of cheaper products.
How you can apply for a personal loan from a non-bank lender
Once you have made your choice, you can follow the links on this page to be redirected to the application page. Keep in mind that most will require the following information as you proceed with the application:
Identification documents Just as with a bank, you are going to have to provide a valid photo identification document as part of your personal loan application. This could be a passport or Australian driver’s license.
Financial information In addition to your credit history, a non-bank lender is going to ask about your current debts before they will approve an application for a personal loan. This includes any other loans you might have in addition to your credit and charge card accounts that are open.
Matt Corke is the head of publishing in Australia for Finder. He previously worked as the publisher for credit cards, home loans, personal loans and credit scores. 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.
You'll receive a variable rate between 9.99% p.a. and 17.99% p.a. (9.99% p.a. to 17.99% p.a. comparison rate) based on your risk profile A credit limit up to $75,000 that you can continue to draw down over terms up to 5 years. Note: No establishment fee and no monthly account service fees apply if you apply and are approved before 31 March 2020.
You'll receive a variable rate between p.a. and 16.40 p.a. based on your risk profile A flexible loan with amounts from $2,001 and terms starting from 6 months. Interest and comparison rates calculated for a loan term of 3 years.
You'll receive a fixed rate between 6.99% p.a. and 28.69% 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.
How likely would you be to recommend finder to a friend or colleague?
0
1
2
3
4
5
6
7
8
9
10
Very UnlikelyExtremely Likely
Required
Thank you for your feedback.
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
Important information about this website
finder.com.au is one of Australia's leading comparison websites. We compare from a wide set of major banks, insurers and product issuers.
finder.com.au has access to track details from the product issuers listed on our sites. Although we provide information on the products offered by a wide range of issuers, we don't cover every available product. You should consider whether the products featured on our site are appropriate for your needs and seek independent advice if you have any questions.
Products marked as 'Promoted' or "Advertisement" are prominently displayed either as a result of a commercial advertising arrangement or to highlight a particular product, provider or feature. Finder may receive remuneration from the Provider if you click on the related link, purchase or enquire about the product. Finder's decision to show a 'promoted' product is neither a recommendation that the product is appropriate for you nor an indication that the product is the best in its category. We encourage you to use the tools and information we provide to compare your options and find the best option for you.
The identification of a group of products, as 'Top' or 'Best' is a reflection of user preferences based on current website data. On a regular basis, analytics drive the creation of a list of popular products. Where these products are grouped, they appear in no particular order.
Where our site links to particular products or displays 'Go to site' buttons, we may receive a commission, referral fee or payment.
We try to take an open and transparent approach and provide a broad based comparison service. However, you should be aware that while we are an independently owned service, our comparison service does not include all providers or all products available in the market.
Some product issuers may provide products or offer services through multiple brands, associated companies or different labelling arrangements. This can make it difficult for consumers to compare alternatives or identify the companies behind the products. However, we aim to provide information to enable consumers to understand these issues.
Providing or obtaining an estimated insurance quote through us does not guarantee you can get the insurance. Acceptance by insurance companies is based on things like occupation, health and lifestyle. By providing you with the ability to apply for a credit card or loan we are not guaranteeing that your application will be approved. Your application for credit products is subject to the Provider's terms and conditions as well as their application and lending criteria.
Please read our website terms of use for more information about our services and our approach to privacy.
