Peer-to-peer loans made simple

A low rate peer-to-peer loan with no monthly or ongoing fees.

award winning peer-to-peer lending
award winning personal loans

Enjoy a low rate peer-to-peer loan that is 100% made for you

  • We reward your good credit history with even better rates ensuring the loan you end up with has been tailored for you in every way.
  • Winner of Canstar’s Outstanding Value Award for four years running (2015, 2016, 2017 and 2018). We think that’s pretty outstanding.
  • Flexible loan terms from 6 months to 5 years for loans between $2,001 and $45,000. Use funds to consolidate debt, renovate, travel and more.
  • No monthly or early repayment fees help you save more and pay off your loan faster. Because nobody has ever said ‘yes please’ to fees.
Low Rate Personal Loans

Getting a peer-to-peer loan is as easy as 1, 2, 3.

Get your personalised rate

Get your quote

Discover your personalised interest rate and repayments in 1 minute (without impacting your credit score) with our quick and easy online quote.

Apply for a personal loan

Apply in minutes

Finalise your application in 5 minutes, then complete our simple online identity verification and bank statement upload process.

Get your personal loan funds

Receive your funds

After receiving your approval, complete our simple online settlement process to receive your loan funds.

You’ve got questions we’ve got answers.

What is peer-to-peer lending?

Peer-to-peer (P2P) is an innovative way for people who wish to invest money (lenders) to connect with people who wish to borrow it. Broadly speaking, peer-to-peer (P2P) lending involves the use of an online platform that anonymously matches borrowers and lenders. The platform operator assumes responsibility for screening loan applicants to ensure that they’re sufficiently creditworthy. For example, RateSetter requires all borrowers to pass through a rigorous credit check that takes into account their credit history, employment status, credit score, and more.  

By eliminating the operating costs associated with maintaining ‘bricks and mortar’ institutions (such as banks and credit unions), P2P lenders can pass the savings on to customers in the form of competitive interest rates. Importantly, they also provide individual investors and SMSFs with access to the resilient and high-yield asset class of retail and business credit.

How are rates set with peer-to-peer lending?

The market offers numerous ways to determine the returns that investors can earn. The model offered by RateSetter works much like a stock exchange. Investors choose the duration of their loan, the amount they wish to invest, and the rate at which they wish to invest. The lowest lending rate on offer is always the next to be matched to prospective borrowers. As such, borrowers always receive the most competitive available rate.

In short, the rates available to investors and borrowers are not determined by RateSetter, but by the supply of, and demand for, funds on each lending market. Lending markets are distinguished by their associated loan terms (i.e. there are one month, three year, and five year markets).

How does RateSetter protect investors?

RateSetter employs what is known as a loss provisioning model of P2P lending. Every RateSetter borrower pays a fee into its Provision Fund, which is held in cash by an external trust and exists to help protect investors from any borrower late payments or defaults. Thanks to its provision fund, no individual RateSetter investor has ever lost a cent of principal or interest since operations commenced in Australia over four years ago.

Why is peer-to-peer lending a good choice for borrowers?

The chief advantage of peer-to-peer lending for borrowers is that they have the opportunity to access more competitive rates than might be available from traditional lending institutions, such as banks and credit unions. There are two reasons for this. First, P2P lenders are better able to offer customised rates to borrowers based on their personal circumstances, such as their credit rating, borrowing history, and employment status. Second, P2P lending platforms, including RateSetter, are structured such that borrowers always receive the lowest available market rate when they apply for a loan. With P2P lending, borrowers also benefit from a loan that has consistent, regular repayments, making it easy for them to anticipate their future financial obligations.

What can I use my peer-to-peer loan for?

You can use a personal loan for many reasons, including:

  • Consolidating debt – paying off credit card debt or bank overdraft charges
  • Home renovation – financing that new kitchen, bedroom, bathroom or backyard makeover
  • Wedding – making your dream day come true
  • Holiday – booking that next getaway, whether it be overseas, or somewhere more local
  • Study – paying those student loan fees, whether it be for high school or university
  • Investment – buying shares or bonds
  • Green – purchasing renewable energy products, such as solar panels or a home battery pack
  • Medical – covering medical bills, whether it be dental, optical or something else

How much does a peer-to-peer loan cost?

If you’re considering a peer-to-peer loan, you may be unsure of how much it will cost. Most peer-to-peerloans comprise of three main factors that impact the total cost over the life of the loan:

  • the interest rate (this may be fixed or variable)
  • upfront fees (e.g. an establishment fee)
  • ongoing fees (e.g. account maintenance fees, late payment fees, and other charges)

These costs are often combined to create a comparison rate that represents the total price of a loan. This allows you to compare different loans to find the one that best suits your needs.

For an overview of fees and charges (including interest rates) associated with RateSetter’s peer-to-peer loans, see the table below:

Personal Loan Rates, Fees & Charges
Term1 Year2 Year3 YearYear 4Year 5
Loan TypeVariable Variable Variable Fixed Fixed
Interest Ratefrom 5.75% p.a.from 5.75% p.a.from 5.50% p.a.from 10.12% p.a.from 10.21% p.a.
Comparison Rate*from 7.44% p.a.from 7.72% p.a.from 7.44% p.a.from 10.93% p.a.from 7.44% p.a.
Credit Assistance Feefrom $249 from $299from $299from $299from $299
Monthly Fees$0$0$0$0$0
Early Repayment Fees$0$0$0$0$0

Comparison rates for 1, 2 and 3 year loans are based on an unsecured personal loan of $10,000 over a 36 month term. Comparison rates for 4 and 5 year loans are based on an unsecured personal loan of $30,000 over a 60 month term. Comparison rates shown assume a customer with an excellent credit history. Rates current as at 8pm, 17 October 2019. Warning: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

Am I eligible for a peer-to-peer loan?

RateSetter provides secured and unsecured peer-to-peer loans to Australian-residents. You can borrow for any worthwhile purpose, including purchasing a car, home improvementsconsolidating debt, planning your dream wedding or travel. Save time before applying by making sure:

  • You are aged 21 or over
  • You are an Australian citizen or permanent resident
  • You have a regular source of income that you can demonstrate
  • You have a good credit history

To see if you may qualify for a RateSetter secured personal loan, you can get a RateEstimate – it only takes 1 minute, and won’t affect your credit score. If you request a RateEstimate, we will ask you a few questions so we can calculate an initial estimate of your borrowing potential, and the rates, fees and charges that may apply to your loan.

In making a final decision, we consider a number of factors, including your credit file as provided to us by Equifax or Illion, our credit bureau partners. If you would like more information regarding your credit file, you should contact Equifax and Illion directly.

What do I need to apply for a peer-to-peer loan?

To apply for a RateSetter peer-to-peer loan, you will need to complete our identity verification process successfully. To complete identity verification you will need to provide one or more of the following documents:

  • Australian State or Territory-issued drivers licence
  • Australian or foreign passport
  • Address verification document such as a utility bill or tenancy agreement

These details can either be entered on our website during the application process and automatically verified online or you can upload as part of the application process.

When assessing your application, we are looking for evidence of how suitable a loan is to your current circumstances. Among other things, we’ll assess your:

  • Employment stability;
  • Income;
  • Expenses;
  • Repayment history;
  • Credit bureau information; and
  • Other details you communicate to us.
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personal loans worth talking about

Representative example: Based on $10,000 loan with a 36 month term for a borrower with a excellent credit history at a comparison rate of 5.50% p.a. the estimated total amount payable including all applicable fees is $11,196. RateSetter loan repayment terms range from a minimum of 6 months to a maximum of 5 years. Interest rates range from 5.75% p.a. (comparison rate 7.44% p.a.) to 12.78% p.a. (comparison rate 20.71% p.a.). Rates are subject to change depending on the rates offered by lenders in our Lending Markets. Rates stated as at 8pm, 17 October 2019 and are subject to change. RateSetter credit criteria and terms and conditions apply.