What is People Powered Lending (Peer to Peer Lending)?
People powered lending is an exciting new way for people to borrow money from other people. The people providing the funding are investors who would like to loan money to creditworthy borrowers.
Borrowers get the recognition for their good credit behavior, by saving with better rates. For investors, it offers an opportunity to invest in a new, attractive fixed income asset class.
How is People Powered Lending (Peer to Peer lending) different from a bank loan?
SocietyOne is not a bank and will not become one. P2P lending provide a different and interesting alternative for creditworthy borrowers and fixed income investors to get a better deal. Part of the attraction of P2P lending is that it can provide better rates and returns without the infrastructure cost and complexity that comes from being a traditional bank or deposit-taking institution.
How are you different from ‘payday’ lenders?
‘Payday’ lenders are generally lenders of last resort. In return for access to short-term credit (about 30 days) and loans that are typically of small nominal value, payday borrowers pay extremely high fees and interest rates.
SocietyOne is not a payday lender. We look for creditworthy, quality borrowers who typically have established relationships with major banks. Our loans range from 12 to 36 months, from $5,000 to $30,000, which does not fit with the definition of a payday loan. We think quality borrowers with good track records are not getting the best rate they deserve.
Rates & Fees
How much can I borrow, and for how long?
SocietyOne’s unsecured personal loans range from $5,000 to $30,000 with flexible loan terms starting from 12 months through to 36 months.
What will my interest rate be?
Your interest rate is determined by your credit profile and financial behavior. Good borrowers get rewarded for their good credit history. Click here to get a personalised rate estimate.
To see our full rate tables, click here.
Can I get a personalised rate estimate before I apply?
Yes. Click here to get a personalised rate estimate based on your credit grade. This is a free service that allows you to get a free credit grade, and a rate estimate based on your credit grade. Don’t worry it won’t ding your credit file!
Please note: the rate range provided is an estimate only based on your current credit profile. Your final rate will be provided once your loan application has been accessed and funded by our investors.
Are there any other fees and charges?
We charge a one-off establishment fee. This is included in your total loan amount. There are no other no monthly fees or early repayment fees. So you have the security of a fixed rate loan, with the flexibility to pay it off early!
For special offers and our fee table, click here.
Application and Approval Process
Who can apply for a SocietyOne personal loan?
You are eligible for a SocietyOne personal loan if you:
- Are over 21 years old
- Earn more than $25,000 p.a.
- Have been in your current role for at least 6 months, or self employed for 2 years
- Have had at least 2 years of credit history
- Have never been bankrupt
- Are an Australian resident
- Are not applying for a business loan
What is the process – how do I apply? How long until I will receive my loan?
1.Get your rate (2 mins) – Get a rate estimate based on your credit grade.
2.Apply online (10 mins) – Complete our easy online application.
3.Get your loan funded(24 hrs) – We will assess your application, fund your loan and get back to you with a loan offer on the same day.
4.Get your money (72 hrs) – Once you finalise your loan, get your money within 72 hours.
Apply now and get started.
Login help & Privacy
What happens if I forget my username and/or password?
If you have forgotten your password, go to our login page
, and click on forgotten password. You will then be emailed a temporary password and a link to proceed. However, to continue you will need to remember the answers to your security questions. If you do not remember the answers to your questions, contact customer service on 1300 144 221 and they will arrange for the I.T department to retrieve the answers for you.
If you have forgotten your username please contact customer service on 1300 144 221 and they will be able to help you.
Can an investor view my personal information?
SocietyOne takes the privacy of its users and security of information very seriously. Investors can only view limited borrower information necessary for making an investment decision. There is no information available to investors to identify who you are. When you register with SocietyOne, you nominate a username, which provides anonymity to the investors who view your loan.
How do I make repayments?
Repayments can be made in either fortnightly or monthly installments, by direct debit.
If you wish to make extra payments, please contact our customer service team on 1300 144 221. There are no fees or penalties for making extra payments or paying off your loan early.
If you are experiencing financial hardship and are having difficulty repaying your loan please call customer service on 1300 144 221.
How are repayments calculated?
Repayments are calculated depending on your choice of period between 12 months and 36 months, and whether you have chosen fortnightly or monthly repayments along with the interest rate you receive on approval of your loan.
Can I choose and/or change my repayment dates?
Your loan offer will set out your direct debit repayment schedule and if you require any changes to that schedule, please contact customer service on 1300 144 221 to discuss.
Can I repay my loan early? Can I make extra payments?
Yes, absolutely. SocietyOne encourages responsible borrowing and provides repayment flexibility. You can either pay out your loan early or make lump sum payments during the life of your loan with no extra fees or penalty. If you wish to pay off your loan completely then please gives us a call on 1300 144 221 so that we can give you an accurate settlement quote.
Are there any fees and charges that come with early exit?
At SocietyOne there are no fees or penalties for paying out your loan earlier than the scheduled period.
Can I change my bank account/direct debit details?
Yes. To do this please contact customer service on 1300 144 221.
I'm interested, how do I become involved?
SocietyOne will allow three types of investors to invest on the platform. These are:
- Sophisticated Investors
- Retail Investors
To ensure the success of SocietyOne's offering and managed delivery, a phased approach has been taken to introducing investors to the business. Until further notice, the investors on the platform are by invite only. There are also specific terms and verification required to become an investor. To read more Click here.
EAR Calculation: what is Effective Annualised Return?
The Effective Annualised Return (EAR) calculation is also known as effective annual interest rate method and is used as a consistent measure of comparing different interest rates. EAR includes the effects of intra-year compounding and is the annualised return on a loan restated from its nominal interest rate. It assumes that principal and interest payments are immediately reinvested and therefore the interest rate is compounded and payable in arrears. This figure is shown on the Investment Summary Page of the members area of our website for all investor accounts.
SocietyOne's EAR calculation reflects only actual cash payments received and does not incorporate future looking projections of performance. As EAR is traditionally used to compare the annual interest rates between investments with different compounding terms during the year, SocietyOne believes it can provide loan investors with a more accurate way of calculating total investment returns as opposed to considering only the stated interest rate on a loan. ?
How is Effective Annualised Return calculated?
EAR is the output of a formula where the numerator is composed of interest received net of any write-offs. If a loan does not get paid, the interest received for that period will be zero. If a loan is "written-off", the entire principal amount of the loan is subtracted from the numerator. Thus, in the numerator, we accumulate all interest received minus any write-offs for all relevant periods. ?Next, we divide this result by the denominator, which is the accumulation of the outstanding principal amount of the loan for all relevant periods. This yields a fraction for the period.
The final step in the calculation involves annualising the result. We take 1 + the dollar-weighted average performance for all periods, raise it to the 12th power to reflect the number of compounding periods for the year, and subtract 1. This result is the Effective Annualised Return, expressed as a percentage. See formula below:
Determining when loans can be included in the formula
To be included in the EAR calculation, a loan must have been issued more than three (3) months prior to the calculation date.
Determining which periods are included in the formula
If it's been more than 3 months since loan purchase, an EAR can be calculated and displayed on an Investor's summary page. After that, the EAR calculation is perpetual (until termination of the loan): meaning, loans don't drop out after 12 months of history. This is why the formula is annualised and results in a fair assessment of determining an investor's loan performance.
Limitations of Effective Annualised Return
EAR is just one method to calculate the return on cash invested in the SocietyOne P2P Lending Trust. We think it is the most useful and accurate way to measure investment performance and compare effective returns because it takes into account actual cash received and write-offs. However, there are other methods for evaluating historical investment returns on fixed-income securities that you could consider.
Have we answered your question?
If any of your questions are still unanswered…….contact us.
Have further questions?
Call us on
1300 144 221
9:00 am - 5:00 pm
Monday - Friday