An Overview of Personal Loan Providers in Australia

When it comes to obtaining a personal loan in Australia, there are various players in the financial market that offer these services. Each player has its own unique features, lending criteria, and terms. In this blog post, we will explore the different entities that provide personal loans in Australia, giving you an overview of the options available.

Banks:

Traditional banks are one of the primary sources for personal loans in Australia. These include major banks such as Commonwealth Bank, Westpac, ANZ, and NAB. Banks offer a wide range of loan options, competitive interest rates, and the convenience of brick-and-mortar branches for in-person assistance.The challenge is that the banks don’t see personal loans as a key acquisition channel and therefore only look for a higher quality of customer, especially if you don’t bank with them.

Credit Unions:

Credit unions are member-owned financial cooperatives that provide personal loans to their members. These institutions focus on community involvement and often offer competitive interest rates and flexible terms. Some well-known credit unions in Australia include CUA, Teachers Mutual Bank, and Community First Credit Union.

Online, Fintech or Non-Bank Loan Providers:

With the rise of digital platforms, online loan providers have emerged as the most popular alternatives for personal loans. They operate primarily online, offering a streamlined application process, quick approval times, and convenient access to funds. Examples of online loan providers in Australia include Plenti, Wisr, NOW Finance and MoneyMe. All of these players have recently invested heavily in digital experience, meaning that they often support fully digital processing and due to lack of human intervention, can often offer very competitive rates.

Payday Loan Providers:

Payday loan providers offer short-term loans designed to cover immediate expenses until the borrower's next payday. These loans typically come with higher interest rates and stricter repayment terms. While they can provide quick access to funds, it's important to carefully consider the terms and fees associated with payday loans.

Salary Advancing or Wage Streaming: 

These apps have surfaced over the last few years and provide a very fast way for you to access smaller amounts of money between the time you borrow and your payday. Some of the better players in the market have amazing customer experiences and can deposit money within 10 minutes. These “fintechs” are very easy to use but often are expensive, often charging fees for each drawdown and offering a slightly different structure than what you are used to. These include the likes of MyPayNow, Beforepay, Nine25 or WageTap.

Not Sure Which One to Choose? Use Lendela

When seeking a personal loan in Australia, it's essential to explore the various players in the market. All offer personal loans with their own unique features and benefits. It's important to compare loan terms, interest rates, fees, and customer reviews to choose the option that best suits your needs and financial circumstances. At Lendela, we partnered with credible financial institutions and banks to bring you tailored loan offers that suit your needs with 1 single application.