Personal loans

Award winning, low rate personal loans from 6.89% p.a. (comparison rate 8.55% p.a.)* with no ongoing fees.

personal loans
Canstar Outstanding Value Award 2019
Canstar Outstanding Value Award 2018
Canstar Outstanding Value Award 2017
Canstar Outstanding Value Award 2016
Canstar Outstanding Value Award 2015
Enjoy a low rate loan that is made for you

Enjoy a low rate that is 100% made for you

  • We reward your good credit history with even better rates. It means the loan you end up with has been tailored for you in every way.
  • Our personal loans come with our market-leading Rate Promise. Borrow with confidence knowing you have the best deal for you.
  • We’ve won Canstar’s Outstanding Value Award five years running. We think that’s pretty outstanding.
  • Enjoy no monthly or early repayment fees. It’s just one of the ways we help you save more and pay off your loan faster.

Apply for a loan in 3 simple steps

Get your personalised rate

Get your rate

Discover your personalised interest rate in just 1 minute. It’s fast, simple and won’t have any impact on your credit score.

Apply for your personal loan

Apply in minutes

You can apply for a loan online in under 10 minutes. Make sure you have your driver’s license and bank details handy.

Drawing down on your personal loan

Enjoy your funds

We’ll review your application. Once your loan is approved and funded your funds will be with you the next business day.

You’ve got questions we’ve got answers

What is a personal loan?

With a personal loan, you agree to borrow a sum of money (usually under $50,000) and pay it back with interest over an agreed term (usually 1 to 5 years). Personal loans, on average, offer borrowers lower interest rates than credit cards. They come with a set repayment schedule with some allowing you to make early repayments. This gives you the flexibility to reduce the time to repay your loan whilst saving on interest costs.

At RateSetter, we offer simple loans powered by peer-to-peer lending. You can borrow between $2,001 to $45,000 over 1 to 5 years. There are no monthly or early repayment fees. This gives you the freedom to save more by making extra repayments on your loan. Finally, the interest rate you receive is 100% tailored to you. The better your credit history, the better your final rate will be.

What can I use a personal loan for?

Your loan purpose is considered when we assess how suitable a personal loan is for you. Whilst we will consider most lawful purposes, popular uses include:

How much can I borrow with a personal loan?

At RateSetter, we offer secured and unsecured personal loans from $2,001 to $45,000. When you complete your RateEstimate, we’ll provide you with an initial estimate of your borrowing capacity. You will be eligible to apply for a loan up to the maximum amount provided in your estimate.

How much does a personal loan cost?

There are three key features that make up the cost of a personal loan. They are the:

  • Interest rate (e.g. fixed or variable rate)
  • Upfront fees (e.g. establishment fee)
  • Ongoing fees (e.g. monthly fees, late payment fees, and other charges)

These costs can be combined to create a measure called a comparison rate. This blended rate represents the total cost of the loan over a standard term (e.g. $10,000 over 3 years). This makes it a useful tool for comparing loans on a like-for-like basis.

For an accurate estimate of the costs of your loan, we recommend completing a RateEstimate. We’ll provide you with a summary of your repayment amount and options across different loan terms. This makes it easy for you to compare loans and choose the right option for you.

At RateSetter, we use risk-based pricing to set the overall cost of your loan. This means we look at a range of factors, including your credit history, to provide you with a personalised interest rate. The better your credit history, the better the rate we are able to offer. We also don’t charge any fees for early repayments. As a result, if you are able to pay back your loan early through additional repayments, you’ll benefit from lower interest repayments.

RateSetter Personal Loan Rates, Fees & Charges
Term1 Year2 Year3 YearYear 4Year 5
Loan TypeVariable Variable Variable Fixed Fixed
Interest Ratefrom 6.89% p.a.from 6.89% p.a.from 6.89% p.a.from 9.79% p.a.from 9.89% p.a.
Comparison Rate*from 8.55% p.a.from 8.92% p.a.from 8.92% p.a.from 10.66% p.a.from 10.75% 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

Should I choose a fixed or variable rate personal loan?

Personal loans have two repayment types, fixed and variable. Both have different features that will influence whether they are suitable for you.

With a fixed rate personal loan, the amount you pay in interest does not change over the life of your loan. This means your weekly, fortnightly, or monthly repayments remain the same. When you choose a fixed rate you benefit from being able to lock in a competitive rate. You can also draw confidence from the fact that you know how much will be repaid. This is a useful feature when managing a budget.

With a variable rate personal loan, the interest rate can change or vary over the life of the loan. Changes in the variable rate for a number of different reasons (e.g. market changes, cost of funds etc.) and can vary between loan providers. When rates move down, you as the borrower benefit from lower repayments. When rates move up, you will need to be able to cover the added costs. To account for this uncertainty, variable rate loans have a lower starting price than their fixed-rate counterparts and offer more flexible repayment terms.

At RateSetter, the repayment types we offer vary by loan term. For loans 3 years and under we offer variable interest rates. For loans 4 years and above we offer fixed interest rates. As a peer-to-peer lender our variable interest rates are set according to the underlying rate in our Lender Markets and may change month to month. These underlying rates are stable and tend to only move within a small range up and down.

Should I choose a secured or unsecured personal loan?

Personal loans can be both secured or unsecured. Both have different features that will influence whether they are suitable for you.

With an unsecured personal loan, no assets are used as security against the loan. In this case, a lender’s decision to provide you with a loan is based solely on how creditworthy you are. Put simply, are you more or less likely to make your repayments on time or default on the loan. As a result, choosing an unsecured loan may result in a higher interest rate or lower loan amount being offered.

With a secured personal loan, an asset (e.g. car, house etc) is provided as security against the loan. In this case, the lender receives rights over the asset that allow them to recover or sell the asset to recover funds in the event a loan defaults. The lower risk profile will usually result in eligibility for a lower interest rate or higher loan amount.

At RateSetter, we offer both secured and unsecured loans. Our secured loans attract lower interest rates but come with additional fees to cover the cost of registering our security over the asset. You can choose whether you wish to secure your loan as part of the application process.

Can I get a personal loan?

To be eligible for a RateSetter loan you must be:

  • Aged 21 or over
  • An Australian citizen or permanent resident
  • Be earning over $25,000 p.a. from a regular source of income
  • Have a good credit history

RateSetter will consider a loan application if you are self-employed. Additional credit assessment criteria and requirements may apply.

How do I apply for a personal loan?

Applying for a loan with RateSetter is easy. You will first need to complete a RateEstimate which will provide you with a summary of your loan options and borrowing power. This will include your personalised interest rate and fees for different loan terms. From there you will be able to select your preferred loan option and start your online application.

As part of your online application, we will need you to verify your identity. To complete this step you will need to make sure you have your Australian driver’s license handy. If you do not have a driver’s license you will need to provide us with a copy of your passport and documents verifying your current address.

During your online application, we will need to verify your income, expenses and liabilities (e.g. credit cards, loans etc). We will ask you to login to a portal which will allow you to connect to your bank account and share your data with us. You will need your bank login details on hand to complete this step. Based on the details you provide we may require you to share further information or documents (e.g.loan statements). A member of our customer service team will let you know if we require anything further from you.

Finally, we will need you to provide us with your bank account details for your loan funds to be deposited. This account will be the same account we use to set up your direct debit payment schedule. You will also have the flexibility to make extra repayments at any time.

In completing our assessment of your application, we will look for evidence of how suitable a loan is to your situation. This includes reviewing:

  • Your employment stability
  • Your income (e.g. salary, rent, interest etc)
  • Your expenses (e.g. mortgage, groceries etc)
  • Your repayment history
  • Credit bureau information
  • Other details you communicate to us

Will I get approved for a personal loan?

Applying for a personal loan has the potential to impact your credit score, particularly if your application is declined. It’s therefore important that you put your best foot forward before beginning the application process. We’ve assembled a useful selection of tips to help you submit a strong loan application.

Make sure you pay your existing debts on time. Did you know that repayments that are more than 14 days late may be recorded on your credit file? While less serious than a default, a series of late repayments can have an equally negative impact your credit score. Making late repayments also sends a bad message to a prospective lender and may result in you paying higher interest rates. If you do ever find yourself behind on your repayments, it’s important you contact your lender directly. Working with your lender toward a mutually beneficial outcome can help to protect your credit score. Remember, it’s far easier to protect a good credit score than it is to bolster a weak one.

Only request as much as you need to borrow. When assessing your application a lender will look at whether you can service a loan. What this means is that, after all your expenses, do you have income left over to meet the repayments of your proposed loan. If you request an amount that is more than your finances say you are able to repay, it’s highly unlikely you will get approved. In some cases, a lender may offer you a longer loan term to reduce your repayments but it’s best to do your homework first. Use a repayment calculator and budget to figure out what you can reasonably afford.

Review your credit history. Australia has three main credit bureaus, Equifax, Illion, and Experian. You can request a free copy of your credit score once a year. Once you’ve verified your identity (i.e. with a driver’s license, passport etc.) the bureau is required to provide you with your credit report within 10 days. Your credit report will provide an overview of your credit history, including previous loans, existing debts, and your performance as a borrower. You should ensure all the information contained in your credit report is accurate, and if not, contact the bureau to have it remedied. This will have a direct impact on your credit score. If you’re unsure of how to interpret your credit score, see this ASIC guide.

Pay down existing debts. Lenders may look unfavourably on an application for individuals with large amounts of debt, particularly if the debts are already at the limits of what you can afford. It’s important to demonstrate a concerted effort to repay your existing debts to a reasonable level. This applies, even if your personal loan is for the purpose of consolidating your debt. While a move to lower interest rates makes sense, it may be harder to get approved unless you’ve opened up some additional capacity between your income and expenses.

Minimise your credit card balance. Using a credit card can be a great way to help boost your credit rating by demonstrating you are financially responsible. However, you need to manage your credit card carefully to ensure your balance is consistently low. Failure to make repayments can have an equally negative impact on your credit score. Finally, lenders are now required to assess your application based on your credit card limits, not the outstanding balance. If you have unused cards or excess limit

At RateSetter, we assess your loan application in line with our credit criteria and our responsible lending obligations. Whilst no guarantee, following the tips above will go a long way to improving the prospect of a successful loan approval.

RateSetter in the Australian Financial Review
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RateSetter in the Sydney Morning Herald

*Comparison rates for loans over 1, 2 and 3 years are based on an unsecured personal loan of $10,000 over 36 months. Comparison rates for loans over 4 and 5 years are based on an unsecured personal loan of $30,000 over 60 months. Rates shown assume a customer with an excellent credit history and are current as at 5pm, 13 December 2019. RateSetter credit criteria and terms and conditions apply. Warning: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

Representative Example: Based on a loan of $10,000 over 36 months a borrower with an excellent credit history can expect to pay a total of $11,430. This represents a comparison rate of 8.55% p.a. and includes all interest and fees included in your loan repayments over the life of the loan. RateSetter personal loans are available for a minimum of 6 months to a maximum of 5 years. Interest rates range from 6.89% p.a. (comparison rate 8.55% p.a.) to 14.49% p.a. (comparison rate 25.10% p.a.). Rates are subject to change depending on the rates offered in our Lending Markets.