Peer-to-Peer Personal Loans

Find out more about peer-to-peer lending in Australia and compare your options all in one place with Savvy.

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, updated on October 4th, 2023       

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What is peer-to-peer lending?

Peer-to-peer lending, also known as P2P personal loans, is an alternative type of financing available in Australia. The difference comes in how you apply and the lenders that you can apply to: instead of submitting your application directly to a lender, you can apply on a specialised P2P lending platform. Your application is then considered by a range of private individual or company investors, who can approve and grant funds to applicants should they be satisfied with their application.

Because these are private financiers and not an institution with shareholders and extensive overheads, P2P services are often able to offer some of the most affordable loans on the market. An area where they can also be highly beneficial to borrowers is their lending criteria, as they aren’t as rigid as what you might find with other lenders such as banks. You can also be more confident that your application is being reviewed by a real person, rather than through a lender with a highly automated approval process.

In terms of the application itself for a borrower, it’s more or less the same as what you would do for a loan to a conventional lender: you’ll still need to provide the same types of documents and go through essentially an identical process between application and settlement.

How should I compare peer-to-peer personal loans?

There’s no great difference between how you should compare personal loans approved by P2P lenders and those by conventional financiers. Fortunately, you can compare both of these right here with Savvy thanks to our panel of diverse lending partners. The same principals apply in the areas that you should be mindful of, including:

Interest rates

One of the most important points to compare on any personal loan, your interest rate is the most significant contributor to the cost of your loan. As such, you should consider the rates offered by different P2P services before submitting your formal application, as doing so can save you a significant amount of money overall.


Fees can also end up costing you quite a bit on your personal loan in some circumstances, which is why you should also compare these when looking at different offers. Some of the fees that you may encounter on your loan (and how much they can potentially cost) are:

  • Establishment fee: $0 to $600
  • Ongoing fees: $0 to $20
  • Late payment fees: $15 to $50

Borrowing range

Part of the personal loan comparison process is also finding a lender who can offer you the amount you’re looking for. While personal loans generally range from $2,000 to $75,000, this may not be the case for your lender or P2P service. For instance, many P2P loans are limited to around $30,000 to $35,000, while some lenders will set their minimum amount at $5,000.

Loan terms

Similarly, you should always ensure that the platform and lender you’re applying to can accommodate the loan term that you’re looking for. In most cases, personal loans are available from one to seven years, with shorter terms offering greater interest and fee savings. However, like borrowing, some individual lenders may offer lower maximums and higher minimums.

Repayment flexibility

Finally, having the ability to repay your loan on your terms is a valuable feature of personal financing. More specifically, this pertains to being able to make additional and early repayments on your loan, which is another effective way of cutting down on your loan’s cost. Some lenders may charge you for doing this, however, so you should prioritise those who don’t if you want to keep that option open.

Types of personal loan

Why compare personal loans through Savvy?

What are the pros and cons of peer-to-peer borrowing?


Lower interest rates

Because the peer-to-peer platform is online, there are few overheads and the interest rate may be better than what you would get from a traditional bank. You may find the average rate is as much as 5% to 6% lower than what you might find with a bank and similar, or lower, than other online lenders.

Quick, easy applications

As an online service, peer-to-peer loan applications are simple to fill out. The approval process is usually quicker than the major banks too, with some peer-to-peer providers automating parts of it. Remember that you may not receive the money on the same day that you get approved. If you are in urgent need of funds, talk to the provider about their process and when you can expect to see the money in your account.

Simple repayments

Peer-to-peer providers usually fix the interest and repayment amounts at the start of the loan so that you can budget for them. The platform will set up your regular repayments as a direct debit when you first start the loan. Though some providers offer variable interest rates, they're less common.


Lower lending amounts

Peer-to-peer platforms usually have lower lending limits than the major banks, potentially capping out as low as $30,000.

Age requirements

Nearly all lenders will offer loans to anyone in Australia over the age of 18. Many peer-to-peer providers, however, require you to be at least 21 years old when applying for a loan. If you are aged 18-21, you may find you have fewer peer-to-peer options available to you, though they do exist.

Few redraw options

It is rare for a peer-to-peer lender in Australia to offer redraw options. If you do manage to find a provider with this service, remember to check their rules around redrawing funds and if any fees are involved.

The process of peer-to-peer personal loan approval

Peer-to-peer lending queries answered

Are peer-to-peer loans safe?

Yes – however, that doesn’t mean that you shouldn’t do your research into different P2P services prior to submitting your application. Another area that you can research is the service’s investor requirements, which can potentially give you an idea of the types of lenders that could be operating on the platform.

Can I find out who my lender is?

Probably not – P2P lending is completed on an anonymous basis: your application is funded anonymously by investors who don’t know your identity either. Your financier may find out whereabouts you live in Australia during the application process, but that’s essentially the extent of their knowledge of you. Your P2P service also won’t disclose the identity of your investor should you request to find out their identity.

Can I apply with a co-borrower or guarantor?

Most peer-to-peer platforms won’t allow you to list a guarantor or co-signer on your loan application. If your credit score and/or income is too low to get approval on your own, you may need to pursue alternative options. If you’re thinking of sharing a loan with someone such as your partner, you cannot put both your names on the application. The person who is listed on the application is solely responsible for all repayments, and the amount they borrow may impact their ability to be approved for further credit in the future.

Are there any restrictions on what I can use my loan funds on?

Not really – like any other unsecured personal loan, you can essentially use your funds for whatever and however you like. Whether you're looking to alleviate financial strain by consolidating existing debts, cover steep medical bills or help subsidise larger investments like your wedding or a holiday, you can do it with a personal loan.

Can I take out a car loan with P2P lending?

Yes – there are many P2P services that can also accommodate secured car loans in addition to unsecured personal loans. These are slightly different to the latter, as they’re designed for the express purpose of purchasing a vehicle. What isn’t different is the need to compare your options, which you can do here with Savvy. If you want help finding the right car loan for you, you can get a quick quote with us today and have one of our experienced consultants guide you through the process.

Helpful personal loan guides

Still looking for the right personal loan?

Personal loans come in all shapes and sizes, so read more about the ways you can use them, as well as how they might work for you.