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Non-bank personal loans in Australia

Non bank loan requirements can be more relaxed than the Big 4.

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Matt Corke

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Bria Horne
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OurMoneyMarket Personal Loan

OurMoneyMarket Personal Loan

From

5.45 %p.a.

fixed rate

From

6.07 %p.a.

comparison rate

  • Personalised fixed rate
  • Flexible payment options
  • Fast online application
Security Logo

100% confidential application

OurMoneyMarket Personal Loan

Apply personalised loan from $2,001 to $75,000 that varies based on your credit history and financial situation.

  • Interest rate from: 5.45% p.a.
  • Comparison rate: 6.07% p.a.
  • Interest rate type: Fixed
  • Application fee: From $250 to $450
  • Minimum loan amount: $2,001
  • Maximum loan amount: $75,000
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Here are some non-bank personal loans you could apply for

Data updated regularly
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Data updated regularly
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
OurMoneyMarket Personal Loan

From 5.45% (fixed)
6.07%
$2,001
1 to 7 years
From $250 to $450
$0
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More Info
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.
Plenti Personal Loan
Exclusive
Plenti Personal Loan

From 5.43% (fixed)
5.43%
$2,001
3 to 7 years
$0 to $999
$0
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More Info
You'll receive a fixed rate between 5.43% p.a. and 17.89% p.a. based on your risk profile.
A flexible loan with amounts from $2,001 and terms starting from 3 years. Interest and comparison rates calculated for a loan term of 5 years.

⭐ Finder Exclusive: Eligible applicants with excellent credit will receive rates starting from 5.43% p.a. (comparison rate 5.43% p.a.). Offer ends 31 July 2021. T&Cs apply.
Harmoney Unsecured Personal Loan
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
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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 $50,000 and repay your loan over 3 or 5 years terms.
Symple Loans Personal Loan
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
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More Info

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.
NOW Finance No Fee Unsecured Personal Loan
Exclusive
NOW Finance No Fee Unsecured Personal Loan

From 5.95% (fixed)
5.95%
$5,000
18 months to 7 years
No Establishment Fee
$0
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More Info
You'll receive a fixed rate between 5.95% p.a. and 17.95% p.a. based on your risk profile
Borrow from $5,000 to $7,999 with loan terms between 18 months and 3 years or borrow $8,000 to $50,000 with loan terms between 18 months and 7 years.

⭐ Finder Exclusive: Apply and settle a NOW Finance debt consolidation loan via Finder by 30 September 2021 for your chance to win $2000 paid off your debt. T&Cs apply.
SocietyOne Unsecured Personal Loan
SocietyOne Unsecured Personal Loan

From 5.95% (fixed)
5.95%
$5,000
2 to 5 years
from $0 to $595
$0
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More Info
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.
Wisr Personal Loan
Wisr Personal Loan

From 6.49% (fixed)
6.76%
$5,000
3 to 7 years
$195
$0
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More Info
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: Wisr's standard establishment fee $595 will be reduced to $195 for applications submitted through Finder. T&Cs apply.
Plenti Variable Rate Personal Loan
Exclusive
Plenti Variable Rate Personal Loan

From 5.43% (variable)
5.43%
$2,001
1 to 3 years
$0 to $999
$0
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More Info
You'll receive a variable rate from 5.43% p.a and 17.89% p.a. based on your risk profile
A flexible loan with amounts from $2,001 and terms starting from 12 months. Benefit from transparent costs and a rate estimate before you apply.

⭐ Finder Exclusive: Eligible applicants with excellent credit will receive rates starting from 5.43% p.a. (comparison rate 5.43% p.a.). Offer ends 31 July 2021. T&Cs apply.
Community First Credit Union Fixed Personal Loan
Community First Credit Union Fixed Personal Loan

From 11.99% (fixed)
12.28%
$3,000
1 to 5 years
$195
$0
More Info
You'll receive a fixed rate from 11.99% p.a. ( comparison rate 12.28% p.a. )
Redraw available, no penalty for early loan repayment and lump sum repayments allowed.
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Non-bank personal loan lenders offer fast online applications that can be approved much sooner than traditional banks. They also are more likely to accept borrowers with less than perfect credit scores. Non-bank lenders mainly offer risk-based loans. This means the interest rate you pay is determined by your credit history. Which can mean cheaper rates if you have an excellent credit score.

When referring to "non-banks", you can be talking about a number of different institutions. These include independent lenders, neobanks, P2P lenders, credit unions and building societies. These institutions, thanks to their smaller size compared to traditional banks, are often able to provide more personalised service, and potentially more competitive rates or less stringent lending criteria, when it comes to personal loans.

Two women dancing. Non-conformity, non-traditional.

What's the difference between a bank and a non-bank lender?

Often, the most notable difference between bank and non-bank lenders is that banks are ADIs (Authorised Deposit-Taking Institutions). This means that they can accept deposits from members, e.g. current accounts or term deposits. They are also regulated by the Australian Prudential Regulation Authority (APRA) and the Australian Securities & Investments Commission (ASIC). However, this is not always the case. This is because some non-bank lenders, or non-traditional bank lenders, are also regulated by APRA and can accept deposits.

There are two types of non-bank lenders:

  1. APRA and ASIC regulated: Building societies, credit unions (otherwise known as "mutuals") and neobanks (also known as "digital banks").
  2. ASIC regulated only: P2P lenders, independent lenders and payday lenders.

How does a non-bank personal loan work?

Personal loans from non-banks often offer the same features as banks, including flexible repayment schedules and competitive variable or fixed interest rates. Personal loans are 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.

You may find different personal loan offerings from non-bank lenders, such as secured personal loans that let you use a term deposit as a guarantee, or an asset such as a vehicle or jewellery. You may also find non-bank lenders offer less stringent lending criteria, but higher rates and fees than traditional banks. How exactly a non-bank personal loan will work will depend on the type of lending institution that you opt for and on the individual lender.

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, also known as "mutuals", 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.
  • P2P lenders. P2P lenders facilitate a platform where investors finance a portfolio of personal loans and earn interest on what they lend, while borrowers are given an individual rate based on their credit score.
  • Neobanks. Neobanks source their own funding and make a margin on the difference. Often, neobanks will offer personalised interest rates to customers based on their financial circumstances and credit scores.
  • 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 involves you taking out a specific loan product.

Find out about dealership financing

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 profit, and customers of the bank are all shareholders. Any profits that are made are put back into the products which then translate to savings.
  • More relaxed eligibility criteria. Where traditional bank lenders may only accept borrowers with very good credit scores, some non-bank lenders accept bad credit applicants or personalise rates based on credit scores.
  • 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. Other non-bank lenders, due to their smaller size, are better equipped to allocate members of their lending teams to guide you through the borrowing process.

Want to compare lenders? Here's how

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. It also may not have the same technology and facilities that the big banks do, meaning a lack of branches across Australia. However, because all lending institutions are regulated by ASIC, risks of using a non-bank lender are limited.

While this is 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 licence.
  • 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.
What is next?

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    Logo for ANZ Fixed Rate Personal Loan
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    Logo for NAB Personal Loan Unsecured Fixed
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    Logo for SocietyOne Unsecured Personal Loan
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