Peer-to-Peer Lending in Australia - Canstar (2024)

Peer-to-peer (P2P) lending has become a popular option for investors looking for a return on their moiney and borrowers in need of a loan. Here is an overview of some of the current providers of P2P lending in Australia.

Who offers peer-to-peer lending in Australia?

A number P2P lending platforms offer products to investors and borrowers in Australia. Through these platforms, borrowers seek loans that are funded by private investors (aka – the borrower’s ‘peer’) who lend their money with the aim of earning a return. This is compared to the traditional lending model where a bank or other financial institution offers loans to customers. Below we list some of the P2P lending platforms operating in Australia.

Society One

SocietyOne claims to be the first P2P lender to launch in Australia back in August 2012. Since launching, SocietyOne says it has connected borrowers and investors to over $1 billion worth of loans. It is part of the ASX-listed MoneyMe Group.

Currently, the minimum investment amount is $100,000, attracting wholesale clients. Borrowers can apply for a loan of up to $50,000 with an unsecured loan and up to $70,000 with a secured loan to be repaid over a loan term of two, three, five or seven years . Establishment fees ranges from 0% of the loan amount up to a maximum of $595.

The following table displays a selection of SocietyOne’s personal loan products on Canstar’s database, sorted by Star Rating (highest to lowest). The results and Star Ratings shown are based on a $20,000 unsecured loan for three years taken out in NSW.Click heretocompare more personal loans tailored to your preferences. Before committing to a personal loan product, check upfront with SocietyOne to confirm what the rates and fees will be for your personal circ*mstances, and whether the product suits your needs. Consider the Target Market Determination (TMD) before making a purchase decision. Contact the product issuer directly for a copy of the TMD.

MoneyPlace

MoneyPlace offers a number of personal loans for various purposes. MoneyPlace states its loans can be used for purposes that include car purchases, medical treatments, holidays, debt consolidation and home improvements. Borrowers can apply for a fixed rate unsecured loan of up to $80,000 with a repayment term of three, five or seven years. There are no monthly service fees for MoneyPlace loans at the time of writing.

MoneyPlace loans are funded by Secure Funding Pty Ltd, which is in turn part of the Liberty Group. Loans financed by Secure Funding Pty Ltd form part of investment funds run by the Liberty Group.

The following table displays a selection of MoneyPlace’s unsecured personal loan products on Canstar’s database, sorted by Star Rating (highest to lowest). The results and Star Ratings shown are based on a $20,000 loan for three years, taken out in NSW.Click heretocompare more personal loans tailored to your preferences. Before committing to a personal loan product, check upfront with MoneyPlace to confirm what the rates and fees will be for your personal circ*mstances, and whether the product suits your needs.

Plenti (formerly known as RateSetter)

Plenti offers personal loans of up to $50,000 with a term of between one and seven years. Its loans can be used to buy a car, renovating a home, debt consolidation or simply to “pay for something”, the provider says.

Plenti allows investors to invest based on the loan it provides to its borrowers. It says it offers a range of terms designed to match different investment timeframes.

The following table displays a selection of Plenti’s unsecured variable personal loan products on Canstar’s database, sorted by Star Rating (highest to lowest). The results and Star Ratings shown are based on a $20,000 loan for three years, taken out in NSW. Click here to compare more personal loans tailored to your preferences. Before committing to a personal loan product, check upfront with Plenti to confirm what the rates and fees will be for your personal circ*mstances, and whether the product suits your needs. Consider the Target Market Determination (TMD) before making a purchase decision. Contact the product issuer directly for a copy of the TMD.

OurMoneyMarket

OurMoneyMarket allows borrowers to obtain a low rate personal loan based on individual unique circ*mstances. The personal loan offers competitive fixed rates starting at 5.45% p.a. with varying rate tiers depending on your credit score. With their catchphrase to “give credit where credit is due” they’re committed to rewarding Aussies with good credit scores by offering a low rate. The platform offers flexibility with a choice of weekly, fortnightly, or monthly loan repayments, and loan terms ranging from 1 to 7 years.

To be eligible for an unsecured personal loan with OurMoneyMarket you must at a minimum satisfy the following:

While there are no fees for service, exit, or early repayment, the Low Rate Personal Loan does have a $250 (minimum) upfront fee and a $35 late payment fee, so consider your ability to pay the application fee and try to avoid late payments.

The following table displays a selection of OurMoneyMarket’s unsecured personal loan products on Canstar’s database, sorted by Star Rating (highest to lowest). The results and Star Ratings shown are based on a $20,000 loan for three years, taken out in NSW.Click heretocompare more personal loans tailored to your preferences. Before committing to a personal loan product, check upfront with OurMoneyMarket to confirm what the rates and fees will be for your personal circ*mstances, and whether the product suits your needs. Consider the Target Market Determination (TMD) before making a purchase decision. Contact the product issuer directly for a copy of the TMD.

ThinCats Australia

ThinCats Australia is an offshoot of ThinCats, a UK-based online P2P lending platform established in 2010 offering loans of up to three million pounds.

In Australia, ThinCats is targeted at small to medium enterprises (SMEs) and offers secured business loans of up to $300,000, for loan terms of up to five years.

As a P2P lender, ThinCats Australia aims to connect investors with borrowers across the country and offers interest rates averaging 12% p.a. These secured loans can be available for loan terms of between two and five years and are advertised as having no hidden fees or repayment charges.

OnDeck

OnDeck is a technology-enabled small business lender that advertises that they can evaluate, approve, and fund small business loans as fast as the same day. Headquartered in New York City, the company claims it has originated more than $8 billion in small business loans in more than 80,000 small businesses across the USA, Canada and Australia.

In April 2015, US-based P2B lender OnDeck announced a strategic partnership with MYOB – Australia’s leading business accounting software provider – and commenced lending in Australia in December 2015.

OnDeck offers flexible term loans lasting up to 24 months, valued between $10,000 to 250,000. It only offers loans to businesses that have been operational for more than one year. It claims applications can becompleted online in under 10 minutes.

Bigstone

Formed in June 2016,Bigstone specialises in offering small- to medium-sized businesses as a finance alternative to banks and other lenders. Bigstone offers business loans worth up to $2 million for commercial, equipment and relevant purposes, and states it has no hidden fees or terms. These loans are said to be verified and completed entirely online, with Bigstone claiming it can take as little as one hour for a loan to be approved if the loan is for $100,000 or less.

Bigstone does not advertise interest rates but instead will tell you the total cost of the loan based onproduct selected, the asset, term and loan size. In order to apply for a loan with Bigstone, your business must:

Marketlend

Entering the P2P lending scene in 2015, Marketlend offers business loans for the purchase of vehicles, equipment, or business expansion. At the time of writing, Marketlend claimed to have funded a total of just under $434.6 million in loans for 907 businesses.

Marketlend says it reduces investor risk by taking a stake in each loan itself. Marketlend investment is ranked below the investors and will take the first loss if a borrower defaults.

Since Marketlend invests its own money as well, it does not lend to borrowers who would likely be unable to get credit elsewhere and does not offer a listing on the marketplace if it is uncomfortable with the risk profile of the borrowing business. Furthermore, Marketlend does not invest in start-ups or borrowers with defaults.

With Marketlend, businesses can borrow between $100,000 and $10 million depending on their credit history.

How peer-to-peer lenders make money

You may be wondering how P2P lenders make money. Well, similarly to other peer-to-peer business such as Uber (which takes a percentage of driver earnings) and Airbnb (which charges a percentage fee), P2P lenders also take a cut in the form of a platform fee – and also sometimes an application fee. The platform fee is often factored into the loan costs that borrowers pay, which is something to consider when comparing products.

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