RateSetter is a loan provider with a peer-to-peer lending platform in Australia that deals in personal and car loans. The lender offers personalized rates on its loan products based upon the borrower’s credit history. It has won the Outstanding Value Award by Canstar for the past five years, after beginning operations in Australia back in 2014.
The personal loans being offered by RateSetter have the following key features:
- Flexible loan terms spanning over a period of 6 months to five years.
- Offering secured and unsecured loans between the amounts of $2,001-$45,000.
- Personalized rate based upon borrower’s credit history and other personal circumstances.
- The loan can be used to cover any personal expenditure such as debt consolidation or paying for a holiday, a wedding, home renovations, and medical bills, to name a few.
- Loans under 3 years have a variable interest rate, while 4 years and above have a fixed interest rate.
RateSetter car loans have the following features:
- Both secured and unsecured car loans, offering loan amounts of $10,000-$100,000 and $2,001-$45,000, respectively, are available.
- Loan terms are available for a period of 3, 5, or 7 years.
- Secured car loans can be used to buy a new car or a used car that is less than 7 years old, or to refinance an ongoing car loan, to pay for a lease, or to make the balloon payment on a car that is less than 7 years old.
- Unsecured car loans can be used to pay for the purchase of either a new or a used car, and any other associated expenses such as insurance, aftermarket upgrades, registration, etc.
- Both fixed and variable interest rates are being offered.
- Borrowing capacity, as well as the maximum loan amount, is defined by the lender after the borrower completes their initial quote.
How Much Does A RateSetter Loan Cost?
Both personal and car loans being offered by RateSetter charge a personalized interest rate that is determined based upon the borrower’s credit history and other financial circumstances. The type of loan also has an impact upon the rate that is ultimately offered to a borrower.
RateSetter charges an interest rate, an upfront fee, and ongoing fees on its loans. These costs combine to make a comparison rate, which stands at as low as 6.03% per annum for a 5-year car loan and 8.83% per annum for a 3-year personal loan.
On personal loans, a credit assistance fee of $249-$299 is charged, with no monthly fees. On car loans, a credit assistance fee of $499 and a monthly fee of $9 are charged.
The following table illustrates the total repayments borrowers should expect to make on a RateSetter loan.
|Loan Type||Loan Amount||Loan Term||Total Repaid|
|Personal Loan||$10,000||36 months||$11,413|
|Car Loan||$30,000||60 months||$34,813.80|
Pros and Cons
Borrowing from RateSetter has these pros:
- No early repayment fees
- Online application system
- Good credit holders are rewarded with low-interest rates
- No monthly charges for personal loans
- Fast loan decision time
The following cons are associated with the services provided by the lender:
- High credit assistance fee for car loans.
Does RateSetter allow early loan repayments?
Yes, the lender allows borrowers to make early loan repayments without incurring any additional charges.
How does RateSetter calculate my interest rate?
RateSetter offers borrowers an individualized credit score that is based upon their individual circumstances, especially credit history and personal finances. The loan amount, loan term, and rates quoted in the lending market also have an impact on the rate quoted to the borrower.
I’ve submitted my application, how long will RateSetter take to approve the loan?
After all of the required documents have been received by RateSetter, the lender will take up to 2 business days to deliver a verdict.
How quickly do I have to deliver my acceptance of a loan after it has been approved?
Borrowers have two weeks to accept a loan after it has been approved.
To be eligible for either a personal loan or a car loan, applicants must:
- Be over the age of 21
- Be a permanent resident or citizen of Australia
- Have a regular annual income of at least $25,000
- Have a good credit record
In case you are applying for a car loan, additional eligibility criteria also apply. Applicants of car loans must also:
- Have a driver’s license that is full or provisional.
- Hold the intention of purchasing a car that is not older than 7 years in age.
Loan applications from self-employed individuals are also considered. The lender may have additional requirements that must be fulfilled in order to qualify for its loan products.
In case customers have any queries or concerns, they can reach a RateSetter representative by dialing 1300 768 710 between Monday to Friday from 9 AM – 5:30 PM AEST. Customers can also send an email at firstname.lastname@example.org.
To apply for a RateSetter loan, applicants need to follow these steps.
Step 1 – Get your rate
Before submitting the online application form, applicants are required to get their rate by submitting an online form available on the lender’s website at www.ratesetter.com.au by clicking on the Get My Rate button, as shown on the top-right corner in the image below.
Finding out your rate won’t have any impact on your credit file at this point. If the rate seems suitable to you, then proceed with filling out the online application form.
Step 2 – Apply in minutes
According to the lender, the application form should take about 10 minutes to complete. The lender advises that you should have your driver’s license as well as bank account details ready as these are required. Complete your application form and submit it for consideration.
Step 3 – Receive your funds (Personal Loans Only)
The lender will carefully review your application and, if it passes all checks, approve your loan. Then, your loan will proceed to the marketplace where it will be funded by investors. Once your loan has been fully funded, the loan amount would be deposited into your designated bank account within one business day.
The following steps apply to car loans only.
Step 3 – Loan settlement
If and when you receive pre-approval for your loan amount, you can arrange for the purchase of your required car. Then, you need to complete the online settlement process as required by the lender.
Step 4 – Funds transfer
Upon finalization of the settlement and the borrower’s acceptance of the loan, the funds are transferred usually on the same day, provided the loan is accepted before 2 PM.