The Loan Market Explained: Monzi’s Go-To Guide

So, you want to learn more about the loan market? Or perhaps you just want to get involved? Either way, you’ve come to the right place! Monzi is a quick and easy lender-finding service that pairs everyday Aussies with some of the best lenders around. Apply for cash loans from $300 to $10,000 today. Intrigued? Keep reading to learn more.

Please note, certain ideas and products presented in this article may not be offered by Monzi nor the lenders we work with. This article presents only general information. Consider seeking professional financial, taxation, legal or other advice to check how the information and ideas presented on this website relate to your unique circumstances.

What is the loan market?

Great question! Essentially, the loan market is the industry where financial institutions provide loans to borrowers at a price, usually known as the interest rate.

But, what do we mean by ‘institutions’? In short, these financial bodies offering loans could refer to traditional lenders, such as the government and major banks. On the other hand, this also refers to alternative lenders like the independent, privately-owned credit providers that Monzi works with.

Put simply, the loan market is the business generated by loan agreements between lenders and borrowers.

How does it work?

Essentially, the loan market operates through the continued business exchange between lenders and borrowers.

After all, as long as people need to borrow loans for one reason or another, there will be lenders offering these loans to be repaid at a price.

Moreover, this market depends entirely on people being able to find the loans they need from lenders they can trust. Fortunately for you, that’s exactly what we do here at Monzi. We do our research to pair you with an available lender, so that you may be able to get the loan you’ve been looking for — and fast!

How big is the loan market?

Much larger than you might imagine! With the number of fintech companies and alternative lenders in Australia on the rise, the loan market also continues to increase in value.

So, just how big is the lending industry? Specifically, it depends on which particular side of the loan market you are looking at. Therefore, Monzi cannot say exactly what the total value of the loan market currently is, as there are numerous variables to consider.

However, it’s fair to say that if you’re in need of quick cash in your account, then there likely will be no shortage of lenders for you to consider.

Are there different types of loan market?

Most definitely! Are you looking to get involved in the loan market, but aren’t sure where to start?

First of all, it’s important to consider what kind of loan you intend to borrow. After all, just as there are many different kinds of loan, there are also many sides to the loan market. For example, if you’re looking for a personal loan, you should head in the direction of the personal loan market.

So, here are just a few of the different markets operating within the lending industry:

  • Personal loan market
  • Payday loan market
  • Home loan market
  • Car loan market
  • Business loan market
  • Student loan market

However, please note that the above list is not comprehensive, as there may be many other kinds of lending markets currently in operation. In addition, this list does not necessarily reflect the types of loans offered by Monzi’s network of lenders.

What is the personal loan market?

Great question! But, before we begin exploring the personal loan market, what exactly is a personal loan?

Put simply, a personal loan is a lump-sum amount of money that you can borrow to cover any personal expense. For example, a personal loan could fund anything from an emergency expense to a last-minute holiday getaway.

So, now that we know what a personal loan is, what is the personal loan market? In short, the personal loan market is just like any other loan market. It is the industry generated by personal loan contracts between lenders and borrowers.

Specifically, these contracts involve you borrowing a certain amount from a lender, and reaching an agreement on the terms of repayment. Then, the borrower will generally repay their loan through regular instalments over the agreed-upon time period. This repayment term could range between a few months to several years, depending on your particular contract. Furthermore, your repayments on a personal loan will usually include the original loan amount, plus any interest and fees accrued.

Overall, the personal loan market is financially driven, whether you’re the one seeking out a personal loan or offering one. So, if you’re hoping to get involved in the personal loan market, you are certainly not alone. The demand for personal loans and online finance is growing, now more than ever.

Payday loan market

A payday loan is typically a small, unsecured loan of up to $2,000. The main purpose of a payday loan is speed. From the moment your loan request is approved to the time of settlement, payday loans tend to have the shortest time frames.

For example, people often use payday loans to cover a cost quickly and easily. This means that lenders will often work hard to provide you with a faster outcome than that of other loans. In addition, payday borrowers generally repay their loan in just a few weeks or months. However, because this repayment period is shorter, payday loans may attract higher interest rates and fees.

So, now that you know all about payday loans, let’s explore the payday loan market. What is it? How does it work?

Essentially, the payday loan market is the business of people borrowing payday loans from fast-working lenders. Moreover, the payday loan market functions just like any other loan market, only speedier. Lenders offer loans at a price to those needing immediate loans. Then, borrowers repay that credit within a short time frame.

Thus, if you lean towards speed, the payday loan market might be your answer. However, note that, at Monzi, we aim to match you with lenders offering personal loans fast up to $10,000.

Home loan market

A home loan is a loan that lenders offer to borrowers to buy a house or residential property. This is also sometimes referred to as a mortgage.

Home loans operate just like other kinds of loan. First, you borrow a certain amount of money from a credit provider. Then, you repay that amount at a certain interest rate over a period of time. For example, these repayments could be weekly, fortnightly, or even monthly.

Moreover, now that we know what a home loan is, we can discuss the home loan market! But, what is it exactly? The home loan market is the industry where traditional and non-traditional lenders offer mortgage loans to those buying a house or other residential property.

Additionally, the home loan market is one of the biggest industries in the country. In fact, the home loan market in Australia is worth $2.1 trillion, based on the total value of the nation’s six million home loans. After all, who doesn’t need a home?

Therefore, whether you’re a first home buyer or a developer hoping to expand your number of properties, the home loan market is always an option. Best of all, there may be fixed-rate or variable-rate home loan options for you.

What is the car loan market?

Fantastic question! However, before we explore the market of car loans, what is a car loan in itself?

In short, a car loan is a personal loan that lenders may offer you to purchase a vehicle. The majority of Aussies will eventually want to buy a new or used vehicle. This could mean anything from a car or motorbike, to a boat or caravan. Just as people may have different preferences when it comes to their choice of vehicle, there are various kinds of financing options available to fund these purchases.

But what is the market for car loans like in Australia? And how does it work? These are important questions, so let’s get right to the point.

The market for car loans revolves around the loan contracts made between lenders and borrowers intending to purchase a vehicle. The car loan market in Australia continues to boom, with Aussies borrowing more than $8 billion to purchase new cars alone in 2018.

As a result, if you are on the lookout for a new set of wheels but don’t have the funds yourself, don’t stress! If the success of the car loan market can tell us anything, it is that you are certainly not alone.

Business loan market explained

So, you want to know more about the business loan market? Well, you’ve come to the right place! However, before we get stuck into that topic, what is a business loan specifically?

Put simply, a business loan is a loan that lenders offer to be used specifically for business purposes. For example, a business loan could help companies cover certain operations, new equipment, or any other work-related costs. Typically, you will either have to own or work for a business to be eligible for a business loan. Additionally, business loans resemble any other loan in that they must also be repaid to the lender with added interest.

The business loan market is a type of market that runs on loan agreements between lenders and borrowers that work for or own a business. After all, some companies just need an extra financial boost to run their business the way they want to.

So, if you need to fund a business-related expense and don’t know where to start, perhaps the business loan market is your answer.

Student loan market

Are you a student in Australia? If so, chances are that you are attending university through the help of a student loan of some kind. However, what exactly is a student loan?

Basically, a student loan is a loan that students can borrow to cover the costs of attending university. Just like any other loan, student loans are typically repaid to the lender over time, at a certain interest rate or with additional fees.

Still, it must be noted that not all student loans in Australia are repaid with interest. For example, students that are Australian citizens or permanent humanitarian visa holders have access to certain government loans.

Specifically, some of these student loans include HECS-HELP, FEE-HELP, SA-HELP, and OS-HELP. Therefore, if you are eligible and need assistance with tuition fees, overseas study experiences, or student amenities expenses, one of these might be for you.

Therefore, if you are looking to study in Australia, a student loan may be of assistance to you. Although we have done our best to inform you about this topic, Monzi also advises that you do your own research into the Australian market for student loans. After all, we are unable to offer these products. They are only available via the government.

Bad credit loan market

Is your credit history a little shaky? Missed a repayment here and there? All hope is not lost! You may still be able to secure a loan through Monzi’s network of lenders.

But what exactly is a bad credit loan? Specifically, lenders may offer these loans to applicants with unfavourable credit history. Due to the risk that these loans pose to credit providers, bad credit loans may have higher interest rates and fees.

As a result, the bad credit loan market is the industry where borrowers with poor credit history secure loans with willing lenders.

Despite popular belief, bad credit loans are becoming more attainable for ‘risky’ clients due to the rise of alternative lenders. Put simply, the days of traditional lenders like big banks dominating the lending market are coming to an end.

In saying that, Monzi cannot guarantee that bad credit applicants will be approved for a loan. However, it is certainly not impossible!

Two people researching the loan market

What type of loan is easiest to get?

Are you concerned about securing a loan? No need to stress! Although Monzi cannot promise that you’ll be approved for the loan you want, we can promise to give you the best information we have.

Generally, borrowers with bad credit tend to be less likely to secure loans with traditional lenders. As a result, they are often more likely to worry about finding the loan they need. While a poor credit rating can often make it harder to secure a loan, it isn’t impossible with Monzi!

In fact, certain loans may be easier to obtain than others, as they pose lower risks to lenders. For example, a secured loan is often easier to attain, as the borrower ensures the contract by using one of their assets as collateral. Specifically, Monzi works with lenders that may accept a car, motorbike, caravan, or boat as security against a loan.

In addition, loans that are secured with an asset often attract lower interest rates and fees, as they are considered less risky by credit providers.

Still, if the secured loan is not repaid, the lender may decide to repossess the chosen asset to recover their losses. However, lenders tend to treat repossession as a last resort. Moreover, there are various consumer protection protocols that lenders must follow prior to repossessing an asset.

Is a loan right for me?

Essentially, it depends on a number of factors! When considering whether you should enter the loan market, you should consider:

  • Your personal financial situation;
  • Your credit history;
  • The type of loan market you’re interested in; and
  • The responsibilities of your potential role in the loan market– whether as a lender, borrower, or something in between.

Therefore, it is best to review your individual circumstances prior to participating in the lending industry. There are many ways to do this, such as by consulting a financial adviser or even using an online loan calculator.

How do I get into the loan market?

With the market for loans growing by the day, it is now easier to get involved than ever before!

But, before you make any rash financial decisions, Monzi has some advice. Borrowing a loan of any kind is a big responsibility and one that you should not take lightly. Therefore, here are some important factors you should consider and compare before seeking a loan:

  • Your regular income: will it be enough to sustain regular repayments?
  • Your outgoing costs: how much will these affect your ability to repay a loan?
  • The amount you intend to borrow: will you be able to comfortably repay the amount? Does your lender have a loan limit?
  • Any additional interest rates and fees: are affordable rates on offer? What will be the total loan cost?
  • Your preferred repayment period: can you sustain regular repayments? Are these terms flexible?
  • The type of loan you want: have you compared various loan options?
  • The lender you are paired with: how do they operate? Do they have a positive history with other borrowers?

So, how exactly does one get involved in the loan market? It’s simple: you’re either lending money or borrowing it. The easiest way to begin your lending journey is to either speak with a financial professional that understands your situation or consult one of the many reliable resources available online.

How do I succeed in the loan market?

In short, Monzi cannot say for sure. After all, there are so many variables involved in the loan market, we can never guarantee your success. However, Monzi can offer you some handy tips that may build on your understanding of the loan market and what is involved.

Specifically, one easy way to get started in the loan market is to be familiar with all the relevant concepts and jargon. So, do your research to ensure you know exactly what you will be applying for. One way to do this could be to visit Moneysmart’s guide to personal loans. There you will find many of the details and explanations that you need.

Having an understanding of these concepts will ensure that you give yourself the best chance of applying for a loan that is suitable for your budget.

Loan market resources

Another way to better prepare yourself for the loan market is to consult reliable resources. Thanks to the power of the internet, Australians everywhere have access to a wealth of information about the lending industry and how to navigate it safely.

Specifically, the Australian government provides a lot of helpful advice in its Moneysmart guide, from financial tips to legal information. Thus, it might be useful for future borrowers to peruse and consider this information before applying for a loan.

While we try not to toot our own horn, Monzi also has a range of articles that may assist you. Through guides like this one, Monzi hopes to inform you of some of the key topics related to cash loans. Search our website to discover a variety of information on topics ranging from the loan market to fast cash loans.

However, remember that we can only provide general information. As a result, it’s up to you to determine how it may apply to your financial situation.

Can I apply with Monzi?

Yes, potentially! The only things standing between you and your application are a few minutes of your time and our eligibility criteria.

To apply with Monzi, you must meet the following criteria:

  • At least 18 years of age
  • An Australian citizen or permanent resident
  • Have a current email address and mobile number
  • Have an online bank account with at least three months of transaction history

However, it is important to remember that these are simply the basic eligibility criteria. You may have to provide a range of other information when applying with Monzi. Furthermore, if you fail to provide the necessary information, your request may be delayed and even denied.

How do I apply with Monzi?

Financial stress can be tricky to manage, but applying with Monzi isn’t. Just follow these simple steps:

  1. Use the loan slider at the top of this page to choose your preferred loan amount and repayment term.
  2. Enter all the personal information required.
  3. Give us time while we try to pair you with a suitable lender.
  4. Prepare for us to contact you with an outcome.
  5. If we are successfully able to pair you with a lender, expect them to be in touch with you directly to start the process.

If all goes to plan, you may have the funds in your account sooner than you think!

How much can I borrow with a personal loan?

Monzi’s lenders offer personal loans from $300 to $10,000 online. With this, lenders may offer both secured and unsecured cash options. As a result, you must consult your financial situation to determine which option may be right for you.

In addition, remember that Monzi works with a network of understanding lenders. As a result, credit may still be accessible even if you receive benefit payments or have less than perfect credit. However, approval is not certain. A lender will assess your application to ensure that the loan is suitable and affordable for you.

Finally, if you are looking for a loan larger than $10,000 or smaller than $300, then you must do your own research. These products will almost certainly be available, however, they won’t be offered by Monzi’s network of lenders.

Contact Monzi

Do you have questions regarding Monzi’s lender-finder service?

Reach out and get in touch today. Email us at and we’ll do what we can to provide you with an answer today.

Having said this, remember that we can only answer questions related to our organisation and service. As a result, if you have questions about the loan market, it may be more appropriate for you to consult resources such as the Moneysmart website.

Monzi: available Australia-wide

The loan market could be your place to go when you’re needing fast cash to cover an expenses today. To get there though, you could consider applying with Monzi.

In short, we could match you with a lender in just 60 minutes. From there, they’ll be in touch to assess your application. As a result, you could be offered a loan today. However, for this to be possible, you must apply during business hours.

Best of all, Monzi is available to residents of all states and territories. So, it doesn’t matter where you live. As a long as you meet our eligibility criteria, you can dive into the loan market with Monzi today.

Apply today!

Start your journey into the loan market today with Monzi on your team!

Though we can’t guarantee you’ll get the loan you apply for, we can guarantee that we’ll do our best to pair you with an available lender.

So, apply online today, and you may receive an outcome in a matter of minutes.

Not ready to apply just yet? No worries. Simply follow Monzi on Facebook, Instagram, Twitter and Pinterest to stay in the loop.

Factor In Costs

You won't use a penny to apply for our lender-finding service, but here's some costs you could expect from a lender

Loan amount

$300 - $2,000


12 months (minimum)

12 months (maximum)


20% upfront establishment fee

+ 4% monthly fee


Representative example based on a loan of $1000 over 6 months a borrower can expect to pay a total of $1440.

Disclaimer: Under the current legislation, all Small Amount Credit Contract loan providers don’t charge an annual interest rate. The maximum you will be charged is a flat 20% Establishment Fee and a flat 4% Monthly Fee. The comparison rate on loans between $300 and $2000 could be up to 199.43%. The minimum loan term is 16 days and maximum loan term is 12 months. Representative example based on a loan of $1000 over 6 months a borrower can expect to pay a total of $1440. WARNING: This comparison rate is valid only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate with the lender that finances your loan.

Loan amount

$2,100 - $4,600


13 months (minimum)

24 months (maximum)


47.8% Annual Percentage Rate (APR)

65.85% Comparison Rate p.a.


Representative example based on a loan of $2500 over 24 months a borrower can expect to pay a total of $4,556.88.

The maximum interest rate for a Medium Amount Credit Contract is 47.8%. Comparison Rate 65.85% p.a. The maximum loan term is 24 months. Representative example based on a loan of $2500 over 24 months a borrower can expect to pay a total of $4,556.88. WARNING: This comparison rate is valid only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate with the lender that finances your loan. Credit criteria and terms and conditions apply.

Loan amount

$5,000 - $15,000


13 months (minimum)

24 months (maximum)


17% Annual Percentage Rate (APR)

36% Comparison Rate p.a.


Representative example based on a loan of $10,000 over 36 months a borrower can expect to pay a total of $16,489.

The starting interest rate for a Personal Loan is 17%. Comparison Rate 36% p.a. The maximum loan term is 24 months. Representative example based on a loan of $10,000 over 36 months a borrower can expect to pay a total of $16,489. WARNING: This comparison rate is valid only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate with the lender that finances your loan. Credit criteria and terms and conditions apply.