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 Name||RateSetter Personal Loan|
|Interest Rate (p.a.)||From 8.46% (fixed)|
|Comparison Rate (p.a.)||8.97%|
|Interest Rate Type||Fixed|
|Minimum Loan Term||0.5 year|
|Maximum Loan Term||5 years|
|Min Loan Amount||$2,001|
|Max. Loan Amount||$45,000|
|Application Fee||$0 (fees may be charged)|
|Monthly Service Fee||$0|
- Easy online application
- Low interest rates to reward good borrowers
- No monthly fee and early repayment fees
- 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: $200 for loan terms up to three years, and $300 for loan terms in between four 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 24 years old
- Have regular income and in full-time employment
- Have good credit history
- Reside in Australia
- Be a permanent resident of Australia or New Zealand