What is peer-to-peer lending?

P2P personal loans are an alternative type of lending. While the products themselves are essentially the same, your application is uploaded to a specialised platform where it’s assessed by private investors, rather than a single lender. Because of this, you may find that these loans come with lower interest rates and greater borrowing ranges (as evidenced by the $80,000 limit) than standard personal finance.

Should I apply for a secured personal loan instead?

If you have an asset to use as collateral for your loan, it may be well worth using it. This is because secured loans typically attract a much lower interest rate than unsecured and can increase your potential borrowing power to reflect the value of your asset. All of this can lead to a substantially cheaper loan, which comes about as a result of your lender feeling safer in the knowledge that the loan funds can be recouped even if you become unable to keep up with repayments.

Can I apply for a personal loan if I have a bad credit rating?

Yes – there are personal loans available to borrowers who have struggled with their credit scores in the past, such as those with defaults or prior bankruptcies . However, these loans are offered by specialist lenders who can work with borrowers in this position, although they come at lower borrowing ranges of up to $10,000 to $12,000 and much higher interest rates and fees.

How long does it usually take to get approved and funded?

In most cases, you can have your application approved and funded within 24 hours . This varies between lenders and also depends on the complexity of your profile, though. For instance, some lenders may be able to approve and fund applications on the same day you apply. If you need a fast loan, it’s worth comparing lenders to see who can offer you the speediest overall process.

Why are loan calculators important when comparing finance offers?

Using a personal loan calculator can be an effective way of enabling you to work out an approximate cost of the overall deal, inclusive of interest, and what your monthly repayments might be. Many applicants find it helpful to have a clear visual of how much loans cost when broken down into their preferred instalment size. You can also use our borrowing power calculator to give you an estimate of what you might be approved for based on your profile.