Investor Marketplace

Consumer Loans

As a loan origination and investment platform, SocietyOne gives investors the ability to build their own portfolio of consumer loans.

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Investment snapshot

By adhering to two simple investment principles – lending to creditworthy borrowers and spreading risk across many individual loans – the banks have turned consumer finance into a highly profitable segment. With SocietyOne you too can invest in asset classes that banks have dominated until now.

Loan amounts: $5K - $50K


Term: Up to 60 Months


Payment type: Principal and Interest


Payment terms: Fortnightly or Monthly

Overview


As an investor with SocietyOne, you have access to a large pool of high quality borrowers. You can build a unique, diversified portfolio of personal loans based on your individual investment goals and risk appetite.

Unlike our many of our competitors we don’t pool loans, but instead provide you with full transparency to select individual loans (this process is automated based on your investment mandate) and drill down on the performance, payment history and returns of each and every loan.


DateDescriptionAA
Tier 1#
A
Tier 2
B
Tier 3
C
Tier 4
D
Tier 5
1/4/2017*Investor Lower Rate 2 & 3 Year Loans6.10%8.65%9.25%10.35%13.15%
Investor Upper Rate 2 & 3 Year Loans7.55%9.25%10.35%13.15%22.60%
% of Loans Funded15.00%20.00%30.00%25.00%10.00%
5 Year Term Liquidity Premium0.85%0.95%1.05%1.15%1.25%

* New Rates from 1 April 2017 show an estimated Average Rate by Credit Grade based on past loan metrics.

# SocietyOne is changing the description of our credit grades to a numerical categorisation. Other than the naming convention, no changes to the credit grading system are being made.

Notes


  1. The rates shown are the Gross Rate per annum an investor will receive net of SocietyOne's Servicer Fees and before any loan impairment on loans for that credit grade.
  2. All loans have an associated expected loss rate based on their probability to default. Your expected return will be less than the Gross Rate received due to the probability of losses on some loans. SocietyOne has priced each credit grade based on our target loss rate for that credit grade. The increase in Gross Rates across lower credit grades is calculated to compensate for the added risk.
  3. 5 year loans attract a liquidity premium to compensate investors for the longer term of the loan. This liquidity premium is added to the lower and upper ranges for the 2 & 3 year loans to provide the range for the 5 year loans e.g. a Tier 3 (B) loan with a term of 5 years would be priced for investors at 10.30% to 11.40%
  4. Where funds are in cash awaiting investment into loans or distribution to the investor, interest is paid at the RBA Overnight Cash Rate less 0.50% p.a.

How we price loans


SocietyOne assess loan applications by analysing a number of credit inputs, including an applicant's credit score and transactional bank statements, to determine creditworthiness. Those applications that meet our credit criteria are listed on the platform for funding.

Registered investors then competitively bid to underwrite a fraction of each loan. In other words, every loan is broken up into small pieces and split amongst the investors who offer the best rate.

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Our experts say


With cash rates at all time lows and high prices and volatility for other traditional asset classes, investing today for the average individual is probably as difficult as it has been in living memory. In building an online credit marketplace, SocietyOne looked for an asset class where returns were high, risks were quantifiable and manageable and the structure was simple and easy to understand for investors. We realised that unsecured personal loans met this criteria and they were a proven and profitable part of the Australian banks’ businesses. Until now, it has been exclusively controlled by the banks.

Our platform is designed to help you navigate the personal loan market with ease, providing you with complete control and transparency to ensure you make the best investment decision based on your unique goals.

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SocietyOne is Australia's most established Marketplace lending platform. We're an online financial community where investors and borrowers can connect to get great deals.