Making investing more rewarding
Earn attractive returns of up to 6.1% p.a.† with peer-to-peer lending
INVESTING WITH RATESETTER
Get started with peer-to-peer lending with as little as $10 and earn up to 6.1% p.a.†
By connecting investors with creditworthy borrowers, we help everyone achieve more with their money.
20,000+ registered investors
$700M+ loans funded
100% of principal and interest returned
ASIC regulated and licensed to accept all Australian investors
Attractive rates for investors
Check out the last matched rates across our four investment markets and start investing today.
5 Year Income
Indicative term: 6 months – 5 years
1 Month Rolling
Indicative term: 1 month
3 Year Income
Indicative term: 6 months – 3 years
National Clean Energy
Indicative term: 3 – 7 years
Capital at risk. See important information and disclaimers below.
WHY INVEST WITH RATESETTER
When it comes to performance, we’re in a class of our own
You can earn up to 6.1% p.a.† by investing in a portfolio of consumer loans to creditworthy borrowers. We have a 100% track record of delivering all interest and principal due.
Attractive asset class
Personal loans, car loans and green loans should not be the sole dominion of large financial institutions. We give everyday Australians the opportunity to enjoy attractive returns offered by investing in this asset class.
Flexible investment options
Choose to invest in lending markets with indicative terms from 1 month – 7 years. You’ll receive regular payments as borrowers repay their loans, which you can choose to automatically reinvest.
MANAGING INVESTMENT RISK
The Provision Fund is a unique way to help protect your investment
While we only match investors with loans to creditworthy borrowers, RateSetter offers a unique, additional buffer to help manage risk – the Provision Fund.
Each borrower pays a fee into the Provision Fund, a pool of funds held in cash by a separate trustee. In the event a borrower misses a repayment or defaults on their loan, the Provision Fund can step in to protect investors. Whilst the Provision Fund has a 100% track record of protecting investors, it is not a guarantee.
Principal and interest
Investing is as simple as 1,2,3.
Register with us
Complete your registration online in minutes. You can register individually or as a company or SMSF trustee.
Transfer in funds
Transfer funds through BPAY or bank transfer. Funds typically arrive the next business day.
Invest in loans
Choose the lending market you want to invest in, select your rate and get matched with creditworthy borrowers.
We’re Australia’s most loved peer-to-peer lender
With more investors than any other platform and a rating of 4.8 out of 5 by over 2,000 borrowers and investors on ProductReview.com.au.
Garth , ACT
I wanted to diversify into a new fixed interest product with different risk and return characteristics. Although slightly higher risk than a bank deposit, this investment is providing a high and steady income.
Frank , NSW
RateSetter has been great, particularly in the reporting of your investment. The webinars are all well done, the interfaces are transparent and simple yet detailed, and the future income screens are incredibly useful.
Garth , ACT
With over nine percent returns, this investment fits into my allocation of growth assets. I’ve certainly achieved my goal of using RateSetter to diversify my portfolio and generate returns that are higher than bonds.
Rodney , AU
I am using RateSetter as a lender. The user interface is easy to use and quickly get used to. I was very happy to see my first payments last month and I’m getting more excited to see my compounding interest in the 2nd month.
You’ve got questions we’ve got answers.
Can I invest with RateSetter?
Individuals, companies and trusts (including SMSFs) can invest with RateSetter. To invest as an individual with RateSetter, you must have an Australian bank account and be at least 18 years of age. Before investing you should make sure you read and understand our Product Disclosure Statement.
How do I start investing?
You can register to invest online in just 5 minutes. Once we have approved your registration, you will be able to transfer funds into your account, select the lending market you wish to invest in, set your rate and have your funds matched with loans to creditworthy borrowers.
For more information about investing, you should see the Product Disclosure Statement.
What are the fees when investing?
Investors are charged an interest margin fee of an amount equivalent to 10% of the gross interest they receive from borrowers. This is charged whenever an interest payment is received. Investors do not earn interest on funds in their holding account, as interest earned on the bank account that holds RateSetter investors’ funds is retained by RateSetter. Management costs also include borrower fees. Read our Product Disclosure Statement for further details.
Importantly, all lending rates displayed on the RateSetter site take into account the fees you are required to pay. The rate you see is the rate you get, subject to a few important assumptions. Learn more about how we calculate and display rates.
Who am I lending to?
We facilitate lending to creditworthy Australian-resident individuals. Our average borrower earns an income of $84,000 and is 40 years old. Borrowers are typically seeking loans for purposes such as consolidating debts, purchasing a car or renovating their home. In our National Clean Energy lending market, borrowers are seeking funds for the purchase and installation of clean energy equipment, such as solar panels and batteries.
At RateSetter, we do the work for you. We carefully examine an applicant’s credit file and circumstances to understand their financial position and ability to repay the loan. Our standards mean that we are not able to assist a large majority of borrowers that submit an enquiry.
RateSetter provides a confidential lending service. The only details you are provided about a loan to whom your funds are matched to is a reference number. All identity, credit, affordability and suitability checking is performed by RateSetter and is not displayed on our website. However, RateSetter publishes a full loan book that sets out details (including loan amounts, interest rates and purposes) on every loan funded to help you understand more about the profile and performance of our loans.
For more information, you should see the Product Disclosure Statement.
How do we manage credit risk?
RateSetter has a number of measures in place to help mitigate risks to investors. To date, all investors have received their principal and interest repayments.
RateSetter only funds loans to creditworthy borrowers. Before any borrower is approved for a loan, they undergo a stringent underwriting process performed by in-house underwriters. Borrowers are identity checked, credit checked and risk assessed. RateSetter only matches investors with creditworthy Australian-resident borrowers. You can view statistics about our credit performance by registering as an investor (this is free and there is no obligation to invest).
In the event that a borrower defaults on their loan, we (or a third party on our behalf) may act to collect overdue payments, including appointing an external collections agency or using available legal remedies, including where appropriate, court action. If a loan is secured, collection actions may include the secured asset being repossessed or sold. RateSetter has the sole discretion to determine what actions if any are taken to recover funds from a borrower.
In addition to our stringent underwriting standards and established collections processes, RateSetter investors may be protected by our unique Provision Fund. In the event of a late payment or borrower default, the Provision Fund may compensate investors for loss. The Provision Fund is not a guarantee nor an insurance product, but thanks to the Provision Fund, no investor has lost a cent of principal or interest due to them. Our number one objective is to maintain this track record on an ongoing basis. Learn more about the Provision Fund.
What are the risks associated with peer to peer investing?
As with every investment, investing in the RateSetter Lending Platform is not without risk.
Borrower late payment or default
A borrower or series of borrowers to whom your funds are lent may delay or stop payment on a loan or default on a loan. You may be protected by RateSetter making a claim to the Provision Fund, however, there is no guarantee nor warranty as to any protection from the Provision Fund, and as such you may suffer financial loss as a consequence of borrower late payment or default.
No Provision Fund protection
We may make a claim to the Provision Fund to compensate you in the event of a borrower late payment or default. However, the Provision Fund is not an insurance product and we cannot guarantee or warrant that you will be compensated. RateSetter has discretion as to whether to make a claim and may determine to only make a partial claim or not to make any claim if, amongst other reasons, there are insufficient funds in the Provision Fund to cover all expected claims in relation to existing loans.
Where the Provision Fund buffer is greater than the value of expected losses, it is our expectation that the Provision Fund Claims committee will make a claim to the Provision Fund to compensate lenders for the full amount of any borrower late payment or default. If the Provision Fund Claims Committee determines that there may not be sufficient funds in the Provision Fund to cover all expected future losses (based on loans currently outstanding), then it may reduce the amount it seeks to claim from the Provision Fund to compensate for borrower late payment or default. For example, the Provision Fund Claims Committee may make a claim on the Provision Fund to compensate an investor for amounts of unpaid principal, but not interest, or may decide to delay any claim for interest until a later date.
If you are not compensated by the Provision Fund in the event of borrower late payment or default, you may benefit from debt collection or recovery processes that RateSetter may undertake, which may or may not recover any funds. In such circumstances, RateSetter may also assign your loan to a collections agency or the Provision Fund for consideration.
No deposit guarantee
Your investment is not a deposit and does not have the benefit of depositor protection laws as it would have if it were an amount deposited with an Australian ADI.
Investment longer than indicative term
In the 1 Month Rolling lending market, your funds may need to remain on loan to a borrower or series of borrowers in a lending market, beyond the indicative term. This may occur if, at the end of the indicative term, there are insufficient lender funds available to replace your funds in a loan. This period could be as long as an additional thirty-five months.
If your funds in the 1 Month Rolling lending market are committed to a loan beyond the indicative term, your funds may be returned to your holding account if your investment in the relevant loan is able to be replaced with the funds of a different investor, subject to the funds replacement buffer. If your funds are committed for a longer period, you will continue to receive payments (where paid by the borrower or you are compensated by the Provision Fund in the event that a borrower is late making payment or defaults) and your interest rate will remain the same.
Your investment may also be longer than the indicative term in the event that a borrower or series of borrowers to whom your funds are matched are late in making payment and you are not compensated by the Provision Fund or other collection or recovery efforts.
† ”Earn up to” rate represents the last matched rate in the 5 Year Income lending market as at 8pm, 14 July 2020. Rates are not set by RateSetter and are subject to supply and demand of borrower and investor funds in each market.
This model provides estimates only and is not a guarantee or forecast. Consider the Product Disclosure Statement before investing. Past performance is not a reliable indicator of future performance. To the extent permitted by law RateSetter Australia Pty Limited and related entities will not be liable for any direct or indirect loss arising out of your use of the calculator.
Total Interest Earned Assumptions
– assumes the investment amount is invested in the selected market at the stated interest rate for the full term with no borrower early repayments
– may assume payments received are continually reinvested in the same lending market at the original investment rate assumes your investment is protected by the Provision Fund in the event of any borrower late payment or default, however, there is no guarantee nor warranty as to any protection from the Provision Fund and your capital is at risk
– months are assumed to be of equal length
– the interest rate displayed is the market rate for the chosen lending market as at 8pm, 14 July 2020 and is displayed on an annualised basis, net of applicable fees. Interest rates you achieve may fluctuate over time
Matters Not Considered
This model cannot incorporate every factor, and does not consider, amongst other things, the following factors which may impact the actual return you receive:
– processing times of payments and instructions, in particular, clearing times of direct debit repayments
– the tax liability of a particular investor
– the term of your investment in the event you are matched to a loan or series of loans beyond the indicative term
^Rates shown are last matched rates, displayed on an annualised basis and net of applicable fees as at 8pm, 14 July 2020. Lender rates may assume payments received are continually reinvested at the stated rate and assume your investment is protected by the Provision Fund in the event of any borrower late payment or default, however, there is no guarantee nor warranty as to any protection from the Provision Fund. Fees apply for using early access feature. See the Product Disclosure Statement for details.
*The Provision Fund buffer is the sum of money held in the Provision Fund and the expected Provision Fund future inflows from outstanding loans due over the lifetime of loans, adjusted to reflect expected early repayments, payment holidays and bad debt. Whilst we’re extremely proud of the Provision Fund’s 100% track record, it is not a guarantee of future performance. Data as at 14 May 2020. Capital is at risk. Read the Product Disclosure Statement for more information.
All figures stated represent the RateSetter Lending Platform only unless stated otherwise.
Provision Fund is not a guarantee, capital at risk. Read more about our Provision Fund.