Take advantage of lower rates for good credit borrowers and no ongoing fees.
While they seem like standard personal loans on the surface, SocietyOne's Personal Loans are a little different. For starters, SocietyOne is not a lender. As a peer-to-peer lender, SocietyOne connects borrowers with investors and then manages and services every loan that it approves. Interest rates are based on a tiered scale, so the better your credit profile, the lower your rate.
SocietyOne works on a strict sliding scale of loans based on your creditworthiness. Interest rates vary from 7.88% p.a. to 25.49% p.a. Comparison rate from 9.9% p.a. to 26.74% p.a.
There are no fixed establishment fees these are charged on a similar sliding scale ranging from 3% up to 6% depending on where you sit on the SocietyOne tier structure.
|Product Name||SocietyOne Unsecured Personal Loan|
|Interest Rate (p.a.)||From 7.88% (fixed)|
|Comparison Rate (p.a.)||9.9%|
|Interest Rate Type||Fixed|
|Min Loan Amount||$5,000|
|Max. Loan Amount||$50,000|
- Low interest rates for good credit
- No ongoing or account keeping fees
- No early repayment fees
- Poor credit borrowers won't qualify
- Low maximum loan amount of $50000
- Restrictive loan terms between 2 and 5 years
Main points to consider with a SocietyOne personal loan
You can borrow as much as $50,000 with a SocietyOne personal loan. SocietyOne offers risk-based pricing, meaning that the better your credit (as evidenced by your credit score), the better the interest rate on your loan.
The interest rate for borrowers with good credit start from 7.88% p.a., while the comparison rate is 9.9% p.a.. Terms vary between 2 and 5 years.
Features of SocietyOne personal loans
- Fixed repayments. Since these personal loans attract fixed interest rates, your repayments remain the same for the entire duration of the loan. This not only protects you from market fluctuations, but it also allows you to budget your repayments in advance.
- Personalised rate. SocietyOne will use your credit score (using Equifax) to determine the indicative interest rate for your loan.
- No ongoing fees. There are no monthly or annual account-keeping fees. Late payments attract a $25 fee and you’d have to pay $25 in each instance of direct debit request dishonour.
- No early repayment fee. If you choose to repay the loan amount earlier than scheduled, you do not have to pay any early repayment fees.
- ClearMatch™ technology. SocietyOne relies on ClearMatch™ technology for day-to-day operations. This platform assists with aspects such as credit assessments, loan origination and loan portfolio management. It includes state-of-the-art underwriting capabilities and it also enables customers to complete the application and approval process over the phone. In addition, it includes an array of debt management and customer service tools, while also assisting with credit scoring.
What's your credit score?
SocietyOne works on a tiered rate system where the better your credit score, the lower your interest rate and fees. It has five credit bands ranging from "Excellent" credit to "Below Average" credit. If you have an "Excellent" credit score (based on Equifax data) you will be deemed an AA - A grade borrower and your score will be above 833. The tiers continue to work down, with "Very Good" borrowers having scores between 726 and 832 and being A - B borrowers. The three bands continue below that.
SocietyOne awards you for good borrowing behaviour, so the better your score, the better your rate. Before you submit a full application, you can get a free estimate from RateSetter. You can also get your free credit score from finder if you want to find out where your credit stands.
How to apply for a SocietyOne personal loan
SocietyOne offers personal loans to Australians who meet its eligibility criteria – you can start the application process by clicking on the "Go to site" button. To apply, you must:
- Be at least 21 years old
- Have a good credit history
- Earn more than $25,000 p.a.
- Be able to afford the loan
- Have at least two years of good credit history
- Not be in hardship with another financial provider
- Not have a pending, current or previous bankruptcy
- Be using the loan for personal use
As part of the application process you have to register on the SocietyOne website. The next step requires you to complete an application form and to submit documents to verify your identity, which comprises the following:
- Copy of your driver's license
- Copy of your passport
- Three months of your bank statements
- Credit card or loan statements
SocietyOne personal loans offer a viable alternative to conventional lenders. What’s important, though, is that you take all of the features into account before making a decision. Use finder.com.au to see how SocietyOne’s loan offerings compare with other products on the market.