Non-bank lender personal loans from 90+ brands
Find personal loans from a wide range of Australian non-bank lenders that suit your needs. Compare interest rates, repayments, fees and more.
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Low Rate Personal Loan Unsecured (Excellent Credit)
Real Time Rating™
Winner of Excellent Credit Personal Loans, RateCity Gold Awards 2022
Fixed up to 7.05%
Fixed up to 7.4%
1 year to 7 years
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Total repayments for a 3-year, $30,000 loan at 6.07% would be $32,587*. Terms from 1-7 years
specialNo extra repayment or early exit fees. Funding approved in 24 hours. Up to $75,000 loan amount
Winner of Excellent Credit Personal Loans, RateCity Gold Awards 2022
A competitive fixed rate personal loan with flexible repayment options, no ongoing or early exit fees, and fast funding. Available to excellent credit borrowers.
Plenti Personal Loan (Excellent Credit)
Real Time Rating™
Fixed up to 7.89%
Fixed up to 8.49%
3 years to 7 years
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Total repayments for a 3-year, $30,000 loan at 6.39% would be $33,047*. Terms from 3-7 years
Enjoy lower rates and no early repayment fees with an unsecured loan.
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Non-bank lenders’ personal loans
If you automatically think about personal loans being supplied by Australian banks you should know it’s possible, and sometimes better value, to also consider a non-bank lenders’ personal loan.
What are non-bank lenders’ personal loans?
Since the banking industry was deregulated in the 1980s competition increased and lower interest rates on personal loans offered by non-bank lending organisations forced many banks to lower their own interest rates. All this is good news for you, the customer, as you have increased choice when seeking a personal loan. Often non-bank lenders’ personal loans offer an excellent alternative to banking institutions. They are still required to conform to the same regulations and rules as banks.
Why do people use non-bank lenders’ personal loans?
There are a number of reasons why you might want to apply for a non-bank lenders’ personal loan:
- You would like to be able to take out a personal loan without any associated credit card or transaction account;
- You like the fact that non-bank lenders can be more flexible when it comes to charging fees and setting rates, which can work to your advantage;
- Non-bank lenders work proactively to minimise overheads and keep costs down, for example some non-bank lenders do not have branches to service, and often these savings benefit you, the borrower;
- Many people think a non-bank lender provides a better service to the customer than a traditional bank.
What are the main features?
Individual non-bank lenders offer different products, so it’s always best to make enquiries about features such as whether the institution makes charges if you pay your personal loan off early and whether they allow you to make flexible repayments. Check if you can make interest only payments if this is attractive to you and whether there are rules applying to the purpose of your personal loan. Some non-bank lenders offer redraw facilities however they may charge you for this.
What are the pros and cons of non-bank lenders’ personal loans?
Undoubtedly applying for a non-bank lender personal loan is useful for you as a customer, as you will generally have a better, more flexible and personalised customer service if you are with a smaller institution. Remember you are not taking a bigger risk by going to a non-bank lender because they are governed by the same regulations as traditional banks.
You can compare a variety of personal loan offers from non-bank lenders just as you would compare standard bank loans. Always check that interest rates quoted are for the same amount and over the same period when making your choice. The same is true when it comes to checking fees for application and settlement, and look out for any additional charges such as an annual or monthly fee.
Non-bank lenders tend to focus on a smaller number of products than banks, so you are unlikely to get access to additional linked items such as a credit card or everyday account.
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Personal Finance Editor
Alex Ritchie is a Personal Finance Writer and Editor at RateCity, and has been writing about Australian finance for over five years. Her expertise and passion covers loans, credit, superannuation, and closing the gender pay gap, and she aims to help young Aussies to overcome their financial apathy. Alongside RateCity, Alex has been published in numerous publications, including Australia's Money Magazine, Business Insider, Lifehacker Australia, and in health via NPS MedicineWise.
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Frequently asked questions
Where can I get a personal loan?
The Australian personal loans market contains dozens of lenders offering several hundred different products. Personal loans are available through a range of institutions, including:
- The big four banks (ANZ, Commonwealth Bank, NAB and Westpac)
- Smaller banks (such as Bank of Queensland, Bendigo Bank and MyState)
- Mutual banks (such as Heritage Bank, Greater Bank and Newcastle Permanent)
- Credit unions (such as People’s Choice Credit Union, BCU and Community First Credit Union)
- Non-bank lenders (such as Pepper Money, Liberty and RACV)
- Peer-to-peer marketplaces (such as Harmoney, SocietyOne and RateSetter)
There are three main ways to access personal loans. You can go through a comparison website, such as RateCity. You can use a finance broker. Or you can directly contact the lender.
Can you refinance a $5000 personal loan?
Much like home loans, many personal loans can be refinanced. This is where you replace your current personal loan with another personal loan, often from another lender and at a lower interest rate. Switching personal loans may let you enjoy more affordable repayments, or useful features and benefits.
If you have a $5000 personal loan as well as other debts, you may be able to use a debt consolidations personal loan to combine these debts into one, potentially saving you money and simplifying your repayments.
Which lenders offer bad credit personal loans?
Several dozen lenders offer bad credit personal loans in Australia. These are generally smaller lenders that aren’t household names.
Do student personal loans require security?
While some personal loans can be secured by the value of an asset, such as a car or equity in a property, student personal loans are often unsecured, which typically have higher interest rates.
Some lenders also offer guarantor personal loans to students. These loans have lower interest rates, as a guarantor (usually a relative of the borrower with good credit) will fully or partially guarantee the loan, taking on the financial responsibility if the borrower defaults.
What is a bad credit personal loan?
A bad credit personal loan is a personal loan designed for somebody with a bad credit history. This type of personal loan has higher interest rates than regular personal loans as well as higher fees.
How much can you borrow with a bad credit personal loan?
Borrowers who take out bad credit personal loans don’t just pay higher interest rates than on regular personal loans, they also get loaned less money. Each lender has its own policies and loan limits, but you’ll find it hard to get approved for a bad credit personal loan above $50,000.
What is an unsecured bad credit personal loan?
A bad credit personal loan is ‘unsecured’ when the borrower doesn’t offer up an asset, such as a car or jewellery, as collateral or security. Lenders generally charge higher interest rates on unsecured loans than secured loans.
What is the average interest rate on personal loans for single parents?
Like other types of personal loans, the average interest rate for personal loans for single parents changes regularly, as lenders add, remove, and vary their loan offers. The interest rate you’ll receive may depend on a range of different factors, including your loan amount, loan term, security, income, and credit score.
Can single mothers get personal loans online?
Many lenders offer online applications for personal loans, which can be convenient for borrowers who have busy lives. If you’re not confident your personal loan application will be approved, you may want to consider contacting the lender by email, live chat, phone, or by visiting a branch, to discuss your situation before applying.
What do single mothers need to apply for a personal loan?
Like other personal loan applicants, single mothers will likely need to provide a few documents to any potential lender, such as personal identification, bank statements (savings, loans, credit cards), proof of address, and proof of income (payslips, tax returns).
Should I get a fixed or variable personal loan?
Fixed personal loans keep your interest rate the same for the full loan term, while interest rates on variable personal loans may be raised or lowered during your loan term.
A fixed rate personal loan keeps your repayments consistent, which can help keep your budgeting consistent. You won't have to worry about higher repayments if your rates were to rise. However, on a fixed loan you’ll also potentially miss out on more affordable repayments if variable rates were to fall.
How long does it take to get a student personal loan?
Completing an online personal loan application can often take anywhere from 10 minutes to 1 hour. Depending on your lender, processing your personal loan application may take anywhere between 1 and 24 hours. If your personal loan application is approved, you may receive the money in your bank account the following business day, or, in some cases, the same day.
What do credit scores have to do with personal loan interest rates?
There is a strong link between credit scores and personal loan interest rates because many lenders use credit scores to help decide what interest rates to offer to potential borrowers.
If you have a higher credit score, lenders will probably classify you as a lower-risk borrower. That means they’ll be keen to win your business, so they may offer you a lower interest rate if you apply for a personal loan.
If you have a lower credit score, lenders will probably classify you as a higher-risk borrower. That means they might be concerned about you defaulting on the loan and costing them money. As a result, they might protect themselves by charging you a higher interest rate.
Can unemployed single parents get personal loans?
It can be more difficult for unemployed borrowers to successfully apply for a personal loan. Most lenders require borrowers to have a regular income available to cover the cost of loan repayments.
If you’re self-employed, or if less than half of your income comes from Centrelink, you may not be eligible for some personal loan options. Consider contacting the lender before applying.
Can I get a no credit check personal loan?
Personal loans with no credit checks are available and called ‘payday loans’. These are sometimes used as short-term solutions for cash-strapped Australians. They often carry higher interest rates and fees than regular personal loans, and individuals risk putting themselves into a worsened cycle of debt.
What are the pros and cons of debt consolidation?
In some instances, debt consolidation can help borrowers reduce their repayments or simplify them. For example, someone might take out a $7,000 personal loan at an interest rate of 8 per cent so they can repay an existing $4,000 personal loan at 10 per cent and a $3,000 credit card loan at 20 per cent.
However, debt consolidation can backfire if the borrower spends the extra money instead of using it to repay the new loan.
How can I improve my credit rating/score?
Your credit score will improve if you demonstrate that you’ve become more credit-worthy. You can do that by minimising loan applications, clearing up defaults and paying bills on time.
Another tip is to get the one free credit report you’re entitled to each year – that way, you’ll be able to identify and fix any errors.
If you want to fix an error, the first thing you should do is speak with the credit reporting body, which may take care of the problem or contact credit providers on your behalf.
The next step would be to contact your credit provider. If that doesn’t work, you can refer the matter to the credit provider’s independent dispute resolution scheme, which would be the Australian Financial Complaints Authority (AFCA).
AFCA provides consumers and small businesses with fair, free and independent dispute resolution for financial complaints.
If that doesn’t work, your final options are to contact the Privacy Commissioner and then the Office of the Information Commissioner.
Can I get a personal loan if I receive Centrelink payments?
It is hard, but not impossible, to qualify for a personal loan if you receive Centrelink payments.
Some lenders won’t lend money to people who are on welfare. However, other lenders will simply consider Centrelink payments as another factor to weigh up when they assess a person’s capacity to repay a loan. You should check with any prospective lender about their criteria before making a personal loan application.
Can I get guaranteed approval for a bad credit personal loan?
Few, if any, lenders would be willing to give guaranteed approval for a bad credit personal loan. Borrowers with bad credit histories can have more complicated financial circumstances than other borrowers, so lenders will want time to study your application.
It’s all about risk. When someone applies for a personal loan, the lender evaluates how likely that borrower would be to repay the money. Lenders are more willing to give personal loans to borrowers with good credit than bad credit because there’s a higher likelihood that the personal loan will be repaid.
So a borrower with good credit is more likely to have a loan approved and to be approved faster, while a borrower with bad credit is less likely to have a loan approved and, if they are approved, may be approved slower.
What causes bad credit ratings/scores?
Failing to repay loans and bills will damage your credit score. So will falling behind on your repayments. Your credit score will also suffer if you apply for credit too often or have credit applications rejected.