SocietyOne started operations in 2012 and so far has provided loans to over 35,000 customers in Australia. The total value of loans given out by the lender so far is $800 million, and the lender expects to cross $1 billion by 2021. It is a personal loan provider with amounts between $5,000-$50,000 and a flexible loan term that spans between 2-5 years.
Customers opting for a SocietyOne personal loan enjoy the following key features:
- Loan amounts are available between $5,000-$50,000
- Borrowers can take out a personal loan for a period of 2-5 years.
- These personal loans are unsecured and can be used to pay for any personal expenditure including a holiday, car repairs, debt consolidation, etc.
- The application process is online and requires only 5 minutes to complete.
- The interest rate applicable to the loan depends on the information presented in the application form.
- Loans are funded on an online marketplace where investors (other Australians) fund the loans required by borrowers.
How Much Does A SocietyOne Personal Loan Cost?
SocietyOne applies a rate on a personal loan that depends on the personal and financial circumstances of the applicant.
The lender has created four Tiers with varying loan costs that are applied on a loan depending upon various factors pertaining to the borrower, including credit rating, the status of employment, requested loan amount, and personal cash flow. This loan grade is applied on a loan at the time the loan is approved.
The following table illustrates the rates that are applied to Tier 1-4 loans.
|Tier 1||Tier 2||Tier 3||Tier 4|
|Credit Rating||Excellent||Very Good||Good||Average|
|Interest rate per year||7.5%-10.89%||10.49%-12.69%||12.29%-15.29%||14.99%-20.49%|
|Comparison rate per year||9.51%-12.71%||13.38%-14.55%||15.38%-17.31%||18.48%-22.38%|
|Establishment fee||From 3%||From 4.25%||From 4.5%||From 5%|
The lender does not charge an early repayment fee and allows early repayments. Other charges by the lender include a late payment fee of $35 for every delayed payment that is charged after 5, 14, 21, and 30 days of the due date. SocietyOne also charges a Direct Debit Dishonor Fee of $15 for every dishonor.
The following table illustrates the cost that borrowers can expect to pay on a SocietyOne personal loan.
|Loan Type||Credit Rating of Borrower||Loan Amount||Loan Term||Total Repayment|
|Personal Loan||Excellent||$5,000||3 Years||$5,767|
|Personal Loan||Average||$5,000||3 Years||$6,551|
|Personal Loan||Average||$25,000||5 Years||$39,559|
|Personal Loan||Excellent||$25,000||5 Years||$31,624|
|Personal Loan||Very Good||$45,000||2 Years||$52,210|
|Personal Loan||Good||$45,000||2 Years||$53,280|
The total repayment figures in the table above include establishment fees.
Pros and Cons
Borrowing from SocietyOne has the following pros:
- Low-interest rates compared to other p2p lenders in the market.
- Ability to borrow up to $50,000 for a period of up to 5 years.
- Loans can be used to cover any personal expenses.
- Those with a good credit score benefit from a low-interest rate.
- Fast loan application processing time.
The disadvantages of applying to a SocietyOne loan are as follows:
- Only those with an above-average credit score are accepted for a loan, although exceptions may be made in some cases.
Is SocietyOne a payday lender?
No, SocietyOne is not a payday loan provider as it offers loans that are much larger for a term period that is much longer for a much smaller interest rate compared to payday loans.
What does an unsecured personal loan, as provided by SocietyOne, mean?
An unsecured personal loan is one that does not have any asset owned by the borrower as collateral against the loan amount. This increases the risk for the lender that is compensated with a higher interest rate.
What is the maximum I can borrow through SocietyOne?
You can borrow any amount between $5,000-$50,000 for a term period between 2-5 years.
Does SocietyOne charge a fixed or variable rate on its personal loans?
SocietyOne charges a fixed rate on its personal loans that is fixed at the beginning of the loan agreement.
To apply for a SocietyOne personal loan, the following criteria must be followed. Applicants must:
- Be over the age of 21 years
- Be a permanent resident or citizen of Australia
- Earn an annual income exceeding $30,000, including any Centrelink payments.
- Have a good credit rating
Borrowers can reach out to a customer support representative by sending an email at email@example.com or by calling 1300 144 221 between Mon-Fri from 9 AM – 5 PM AEDT. In case you have queries pertaining to repayments, then you can send an email at firstname.lastname@example.org or call 1300 950 345.
Applying for a SocietyOne loan is simple. Applicants need to follow these steps.
Step 1 – Get a quote
Since the lender charges an interest rate depending on each individual borrower’s financial circumstances, applicants first need to request a quote so they know the cost of the loan. This helps both the lender and the borrower develop a clear understanding of whether the borrower can afford the loan repayment. It takes only a minute to get a quote. All you have to do is logon to www.societyone.com.au and click on the Get My Rate button, as shown in the image below.
Rate inquiry does not have any impact on the credit score of the borrower. The form will ask you about the loan amount you require, your personal details including date of birth and driver license number, residential address details, and some basic financial information. After confirming your ID, the lender will provide you with a quote that may or may not change after the actual loan application is filed.
This rate is meant to give the borrower an estimate of the loan cost so that the borrower can make a comparison against other loan providers in the market.
Step 2 – Submitting the application form
In case the quoted rate fits the applicant’s affordability budget and seems suitable, they need to file the actual application form on the same website. This should take about 5 minutes to complete, as applicants are required to submit personal information, including financial information such as income, expenses, any other outstanding loan obligations, and the credit score.
Step 3 – Approval & funds disbursement
Once the loan application has been approved, it is placed by the lender on an online loan marketplace where investors (other Australians) browse through loans and fund the ones they like. Every loan comes with a unique risk/return profile, which means that higher risk results in higher returns for the investors that are funded through a higher interest rate charged to the borrowers, vice versa. Once a loan is fully funded, the loan amount is transferred to the borrower’s bank account.