RateSetter Peer-to-Peer Loan

Rates and fees last updated on

Who else wants a personal loan the peer-to-peer lending way? With personal loans from RateSetter, that’s exactly what you get.

RateSetter is not a bank, but it is an ASIC-regulated business, and it works by connecting creditworthy borrowers with lenders. By making use of technology, RateSetter reduces costs normally associated with providing personal loans. This business provides peer-to-peer lending, and how the concept works is rather simple.

As with other peer-to-peer lending companies, a typical loan can come through multiple investors, allowing them to diversify even relatively small investments. RateSetter gives borrowers the option to choose between different unsecured personal loan types, and these loans come with repayment flexibility and low fees. Find out the features of a RateSetter personal loan below, and how it could benefit you as a borrower.

Product NameRateSetter Personal Loan
Interest Rate (p.a.)From 8.66% (fixed)
Comparison Rate (p.a.)9.17%
Interest Rate TypeFixed
Min Loan Amount$2,001
Max. Loan Amount$45,000
Loan SecurityUnsecured

Pros

  • Easy online application
  • Low interest rates to reward good borrowers
  • No monthly fee and early repayment fees

Cons

  • Bad credit history will not qualify
  • Risk assurance charge from $76

Types of personal loans offered by RateSetter

RateSetter offers two basic types of unsecured personal loans, which include variable rate loans and fixed rate loans. You can use proceeds from these loans for just about any legitimate purpose.

  • Variable Rate Loans. These loans, as the name suggests, attract variable interest rates. What helps is that your monthly repayments remain the same for the entire duration of the loan, and any changes in interest rate are reflected only in the last repayment that you have to make. You can view your estimated final repayment at any time by going through your RateSetter account online, and you can pay off the entire loan ahead of time without worrying about paying an early repayment penalty.
  • Fixed Rate Loans. A fixed rate RateSetter personal loan also ensures that your monthly repayments remain the same throughout the loan period, although there can be a slight variation in your final repayment because of account rounding through the course of the loan. These loans don’t attract early repayment penalties.

Features and benefits of a RateSetter personal loan

RateSetter relies on the latest in online technology to take forward its peer-to-peer lending. While it does not lend any money on its own, it connects you with lenders who offer competitive and simple personal loans, and by doing away with overheads in various forms it is able to charge considerably low fees.

  • Loan amount. You can borrow a minimum of $2,001 through a RateSetter personal loan, and the maximum you can qualify to borrow stands at $45,000.
  • Loan term. Loan terms for variable rate loans is in between 0.50 year(s) and 5 year(s). In the case of fixed rate loans, loan term can vary from 3 to 5 years.
  • Regular and additional repayments. Making repayments is easy as you simply have to set up a direct debit facility. You can make additional repayments at any time, either through BPAY or through bank transfer, and these repayments don’t attract any penalties.
  • Early repayments. If you wish to pay the entire loan amount sooner than scheduled, you can, and this allows you to save on the interest you end up paying. This, again, does not attract any penalty.

Fees and charges

Owing to the peer-to-peer lending concept that RateSetter follows, fees and charges are kept competitive. The costs of these loans is as follows:

  • Credit assistance fee: There is no fee for loan terms below 2 years, and $250 for loan terms in between two and five years. RateSetter charges this fee to help connect you with suitable lenders.
  • Risk assurance charge: From $76. This goes to the provision fund, which in place to protect the interest of investors.
  • Monthly fee: None
  • Early repayment penalty: None

How to apply for a personal loan from RateSetter

Applying for a RateSetter personal loan is straightforward. To complete an online application just click on the ‘Go to Site’ button. You start by getting a RateEstimate and the next step is to complete the application. You find out about your application status within one business day.

To qualify for a RateSetter personal loan you have to meet certain eligibility criteria, which are as follows:

  • Be at least 21 years old
  • Have regular income
  • Have good credit history
  • Reside in Australia
  • Be a permanent resident of Australia or New Zealand

Was this content helpful to you? No  Yes

This page was last modified on 4 July 2017 at 11:14am.

Ask an Expert

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, read the PDS or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms and Conditions and Privacy Policy.

16 Responses

  1. Default Gravatar
    SuzanneJune 21, 2017

    I wish to borrow $3500 to help my grand children go to USA for medical treatment at Boston Diabetic Hospital. I am an aged pensioner.

    • Staff
      JonathanJune 21, 2017Staff

      Hi Suzanne!

      You may check your options for pensioner loans on this page. Kindly click on the name of your chosen lender and then “Go To Site” green button once redirected to proceed with your application.

      Hope this helps.

      Cheers,
      Jonathan

  2. Default Gravatar
    EmilyOctober 10, 2016

    I have changed jobs 4 months ago, is there a bank or institution that doesn’t have the requirement of minimum 12 months in the same job?

    Thanks!

    • Staff
      ElizabethOctober 10, 2016Staff

      Hi Emily,

      The majority of lenders just require you to be out of your probation period if you’re employed full-time, meaning only requiring three payslips. If you work casually or part-time you can check the criteria on this page.

      Hope this helps,

      Elizabeth

  3. Default Gravatar
    CarolynnNovember 16, 2015

    Looking to consolidate a personal loan – value approx 30,000

    What is the interest rate

    • Staff
      ElizabethNovember 17, 2015Staff

      Hi Carolynn,

      Thanks for your question.

      The interest rate you are offered by RateSetter depends on your financial circumstances. You can get a rate estimate by providing a few details to RateSetter without it affecting your credit score on the RateSetter website.

      Thanks,

      Elizabeth

  4. Default Gravatar
    RajNovember 12, 2015

    Looking to consolidate our car and a personal loan – value approx 80,000

    • Staff
      ElizabethNovember 13, 2015Staff

      Hi Raj,

      Thanks for your question.

      The maximum amount you can borrow with a RateSetter loan is $35,000. You can compare your other debt consolidation options on this page.

      I hope this has helped.

      Thanks,

      Elizabeth

  5. Default Gravatar
    JennyMarch 27, 2015

    Do you provide facilities if I want to refinance a personal loan I already have?

    • Staff
      ShirleyMarch 30, 2015Staff

      Hi Jenny,

      Thanks for your question.

      Unfortunately RateSetter doesn’t facilitate the refinancing for you. While you may be able to obtain the funds from RateSetter, you will need to organise the refinancing yourself.

      A non-peer to peer lender may be able to assist you with refinancing.

      Cheers,
      Shirley

  6. Default Gravatar
    AliMarch 11, 2015

    My husband and I wish so consolidate our car and a person loan – value approx 40,000

    • Staff
      ShirleyMarch 12, 2015Staff

      Hi Ali,

      Thanks for your question.

      Please note that finder.com.au is an online comparison service and is not a product issuer. If you would like to discuss your eligibility or options, please get in touch with RateSetter directly.

      Cheers,
      Shirley

  7. Default Gravatar
    nathanMarch 5, 2015

    hi.

    I’m 23 year old, have full time work. flawless credit rating.im seeking a similar loan. any information would be grateful.

    • Staff
      ShirleyMarch 6, 2015Staff

      Hi Nathan,

      Thanks for your question.

      If you would like to find out more information about RateSetter loans, please click on ‘go to site’. Please keep in mind that you must be 24 to apply for their loans.

      Otherwise, if you’d like more information on peer to peer lending, please see our guide.

      Cheers,
      Shirley

  8. Default Gravatar
    HsleyJanuary 30, 2015

    My name is Haley im turning 26 in march i have a good credit rating
    Im permanent resident of Australia and born Australia live in Cairns im a i have a steady income but its center link single parent income i owe money to different places and want to consolidate in to 1 with a personal loan would use accept me still

    • Staff
      ShirleyJanuary 30, 2015Staff

      Hi Haley,

      Thanks for your question.

      To be eligible for a RateSetter Peer-to-peer loan you need to be earning a steady income from employment.

      If Centrelink is your sole income, you may want to have a look at our pensioner loans page.

      Cheers,
      Shirley

Ask a question
feedback