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How to get a $20,000 personal loan in 10 minutes

How to get a $20,000 personal loan in 10 minutes

John* needed quick access to $20,000 to pay for emergency renovations to his home.

So he turned to Symple Loans, one of a new breed of online-only marketplace lenders.

Within 10 minutes, John’s personal loan application had been completed and approved. The next day, the $20,000 was in his bank account.

John signed up for a two-year loan term. He was given a personalised interest rate of 5.99 per cent (comparison rate 7.55 per cent). He was charged an upfront fee of 2 per cent of his loan amount (or $400). The loan also came with a $10 monthly fee.

Symple Loans connects borrowers and investors

Symple Loans didn’t lend John any of its own money. As a marketplace lender, Symple acts as a middleman between borrowers like John and investors who want to earn money by funding their loans.

Here’s how the marketplace system works:

  • Private investors contribute capital to Symple’s managed investment scheme (MIS)
  • Capital within the MIS is used to fund loans like John’s
  • Borrowers’ interest payments are passed back to investors until the loan is repaid in full

Stronger credit history equals lower interest rates

Symple offers personalised interest rates, or different rates for different borrowers depending on their credit history and financial position.

Interest rates range from 5.99 per cent (comparison rate 7.55 per cent), which is low by market standards, to 25.99 per cent (29.20 per cent), which is high by market standards. 

Loan sizes range from $5,000 to $50,000, while loan terms range from one to seven years. Upfront fees range from 2 to 5 per cent.

Borrowers must be employed and earn at least $25,000 per year, among other conditions.

Here’s how much borrowers would pay for a two-year, $20,000 loan:

Advertised rate Comparison rateMonthly repaymentsTotal repayments
5.99%7.55%$886$21,272
25.99%29.20%$1,077$25,857

* Data accurate as of 12 September 2019

Shop around

It's important to compare your options and seek professional advice before taking out a personal loan.

Symple Loans is one option, but you might find another lender is offering a better personal loan for your situation.

Interest rates and approval times vary from lender to lender and individual to individual. So you can't assume that you will always be able to qualify for a lender's lowest interest rate or qualify for a loan in just 10 minutes.

* John is not a real person. This is a hypothetical case study.

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This article was reviewed by Personal Finance Editor Alex Ritchie before it was published as part of RateCity's Fact Check process.

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