Peer to Peer lending taking on the banks

bigbanks1Peer-to-peer (P2P) lending, the global phenomenon that enables people to bypass the banks and borrow online directly from each other, is taking off in Australia thanks to SocietyOne. Australia’s only P2P lending platform, SocietyOne today announced the expansion of its plans to help more Australians save on personal credit, starting with a new personal loan rate for prime borrowers that’s more than 5% lower than the major banks.

Reduced rates and lower fees are only part of SocietyOne’s mission, which empowers both borrowers and investors by cutting out the banks and offering everyone a fairer deal.

Two years ago, SocietyOne began attracting investors who wanted a share in the slice of the banks’ $27.4 billion profits while offering a better deal to borrowers. It is now expanding with personal loans of $5,000-$30,000 available to qualifying borrowers via its easy-to-use website, offering a rapid response and a better deal.

SocietyOne has introduced a special discount interest rate of 1.25% below its standard rates for fixed unsecured personal loans. The result is a market-leading headline comparison rate of 9.80%pa for borrowers with excellent credit. This rate applies to A-rated customers and is a full 5.48%pa lower than the average personal loan rate from the big four banks*. Unlike the banks, this special limited time offer comes with no application fee, monthly maintenance fee or early pre-payment fee, demonstrating the power of P2P lending to provide transparency and fairness to all parties.

“Borrowers used to have few choices in consumer finance. Now there is another, better option if you’re a creditworthy borrower. We can offer you a cheaper loan through risk-adjusted pricing and a 100% online application process,” said SocietyOne co-founder and CEO, Matt Symons.

“Our advanced technology platform allows us to shift the power to regular Australians and totally change the way you apply for and receive a loan. This means a simple online application and the best possible interest rate which is based on your circumstances, not one-size-fits-all,” he said.

P2P lending has grown into a multi-billion dollar industry around the world, fuelled by people who are tired of the power of the big institutions and are looking for a better deal. SocietyOne is Australia’s only active P2P lender, and like other P2P companies around the world, it lets qualified investors compete for parts of a loan.

As a P2P lender, SocietyOne connects investors directly with creditworthy borrowers in a way that is simple, secure and confidential. It takes the complexity out of applying for a traditional bank loan whilst its lower operating cost advantage means it can reward borrowers with good credit with better rates through risk-adjusted pricing.

Successful borrowers on SocietyOne have included people looking to fund their wedding, car loans, and young medical graduates looking to fund an overseas holiday.

To learn more, please visit http://www.societyone.com

About SocietyOne

SocietyOne is Australia’s leading Peer-to-Peer technology platform where high credit quality borrowers can connect directly with sophisticated investors to get a better deal. The SocietyOne ClearMatchTM platform reduces the cost of originating and managing a consumer loan portfolio. SocietyOne is able to share this operating cost advantage with borrowers and investors. SocietyOne’s unsecured personal loan has been recognised as one of the Top 10 most Innovative Banking Products of the year in Australia and its SmartLoan mobile app was awarded “Best of Show” at Finovate Asia in November of 2012. To learn more about SocietyOne, go to http://www.societyone.com.au

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