Personal Loan Broker – The Monzi Guide

A personal loan broker can find you the best loan for your individual situation. By using a broker, you can avoid shopping around for a loan yourself. It is, however, important you pick the right broker. Not sure where to start? Monzi can help.

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 a personal loan broker?

A personal loan broker is someone who helps you find a good deal on a personal loan. Specifically, brokers look within their panel of credit providers to find you a deal.

Brokers will generally have a network of lenders that they do business with. If you employ the services of a broker, you may be offered a product from within this network.

By employing a broker, you have one point of entry for all your personal loan needs. Regardless of whether you’re looking to renovate or need car repair loans urgently, your broker can try to help.

What are the benefits of a broker?

There is a number of important benefits to employing a broker, including:

  • Convenient. Saves you the time and effort of looking for a loan yourself. In addition, most brokers offer their services online, meaning you don’t have to book any appointments sign physical paperwork.
  • Expertise. Brokers may be useful if you fail to meet the requirements of traditional lenders. If you, for example, have poor credit history, your broker may quickly find you a lender willing to consider your application.
  • Credit score. Your broker may help you maintain your credit score by avoiding unnecessary applications. Specifically, brokers will not recommend a loan product they know you are unlikely to be approved for.

Personal loan broker comparison

As we are sure you will notice, there are a lot of different brokers out there. While they initially may seem very similar, consumers should always spend time comparing their different options.

To give you a better idea, consider the below list when comparing brokers.

  • Loan type. Confirm the broker you are looking at offers the personal loans you’re looking for.
  • Interest. Brokers generally only offer fixed interest loans, but others may also offer variable.
  • Lending panel. Brokers work with their panel of lenders to find you a good deal. Obviously, the bigger the broker’s panel of lenders, the higher your chance of getting a good deal. Moreover, note that they may receive a fee from a lender if you agree to a loan.
  • Operations. While most brokers operate online, others may use traditional forms of communication, like phone, fax or post. Weigh up which system works best for you. Keep in mind, lenders operating online will generally provide the quickest outcomes.
  • Customer support. Is your broker easy to get in contact with? Do they provide an adequate level of customer service?

Things to avoid when selecting your broker

Obviously, a broker may make it simpler to accesseasy personal loan approval. However, a broker may not be for everyone. Furthermore, not all brokers were created equally. Consider, as a result, the following:

  • Small network. If your broker has a very small pool of lenders, your chances of finding a good deal may diminish.
  • Commission. Essentially all brokers will earn commission one way or another – it’s how they make money. However, certain brokers may pressure you to sign up with lenders that offer them a higher commission.
  • Fees. Make sure you clearly understand what fees and charges you’ll have to pay your lender.

What is a high risk personal loan broker?

High risk brokers specialise in helping consumers with particularly poor credit history.

If you, for example, have multiple defaults or bankruptcies listed on your report, lenders will consider you a risky loanee. This may bar you from most traditional lenders, as well as drive the rates and fees you’re expected to pay up.

A high risk broker may help you find a lender willing to consider your application. In other words, you might be able to find unsecured personal loans with bad credit instant decision.

personal loan broker doing up suit button

What questions should I ask my broker?

As mentioned, brokers are personal loan experts. Moreover, your broker will gain an understanding of your personal situation and objectives and make recommendations accordingly.

Consider asking your broker the following questions:

  • Which personal loan company is best for my situation?
  • What does my credit profile mean for my chances of approval?
  • Which lenders do you work with?
  • What information do I need to have ready for my application?

Where can I find a broker?

Looking for a loan broker near me? Luckily, brokers operate all over Australia. No matter what state or city you’re in, you’re bound to find a convenient option.

The table below shows examples of where brokers are potentially available.

Loan broker near meLoan broker Brisbane
Sunshine Coast broker for personal loansGold Coast brokers
Canberra brokersBroker for unsecured loans Sydney

Is Monzi a personal loan broker?

No, Monzi is a lender-finder service. While they may seem the same initially, there are a few key differences between Monzi’s service and a broker.

Brokers will gain an understanding of your situation, requirements and objectives, and then will use this information to try and find you a loan from within their network. Monzi’s lender-finder service, on the other hand, operates a little differently.

When you apply on our site, we gather your information into an application. From there, our automated system will attempt to match you with an available lender from our network. If successful, your lender will conduct an assessment to determine your outcome.

In other words, Monzi does not pick the lender for you. Instead, once your application is in our system, credit providers will get in contact if they can make you an offer. Therefore, we cannot guarantee your chances of approval nor can we say with certainty whether you can access no credit check loans.

Monzi Personal Loans

We are not a broker; however, we may still be able to help you match with a lender. Scroll up to the loan slider. Need more information? Head over to the Government’s MoneySmart website.

Alternatively, find more Monzi over on Facebook, Instagram, Twitter and Pinterest.

Factor In

Costs

Two credit cards
Two credit cards

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

Terms

12 months (minimum)

12 months (maximum)

Costs

20% upfront establishment fee

+ 4% monthly fee

Example

Loan Amount of $1,000 over 6 months repayable weekly (25 weekly repayments). $1,000 (Principal Amount) + $200 (20% Establishment Fee) + $240 (fees based on 4% per month over 25 weeks) = $1,440 total repayable in 25 weekly installments of $57.60.

Under the current legislation, most small personal loan providers don’t charge an annual interest rate (you’ll know this as an APR) %. The maximum you will be charged is a flat 20% Establishment Fee and a flat 4% Monthly Fee. The maximum comparison rate on loans between $300 and $2000 is 199.43%. The minimum and maximum loan term is 12 months. WARNING: This comparison rate is true 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.

Loan amount

$2,001 - $4,600

Terms

13 months (minimum)

24 months (maximum)

Costs

48% Annual Percentage Rate (APR)

67.41% Comparison Rate p.a.

Example

Loan Amount of $3,000 over 18 months repayable weekly (78 weekly repayments). $3,000 (Principal Amount) + $400 (Establishment Fee) + $1,379.06 (reducing interest) = $4,779.06 total repayable over 18 months with weekly installments of $61.27.

The Annual Percentage Rate (APR) for Secured Medium Loans is 48%. The Typical Comparison Rate is 67.41% p.a. The minimum loan term is 13 months and the maximum loan term is 24 months. WARNING: This comparison rate is true 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. Click here to see a worked example.

Loan amount

$5,000 - $10,000

Terms

13 months (minimum)

24 months (maximum)

Costs

21.24% Annual Percentage Rate (APR)

48% Comparison Rate p.a.

Example

Loan Amount of $10,000 over 24 months repayable weekly (104 weekly repayments). $10,000 (Principal Amount) + $5,577.12 (Interest) = $15,577.12 total repayable over 24 months with weekly installments of $149.78.

The Annual Percentage Rate (APR) for Secured Large Amount Loans is 48%. Maximum Comparison Rate is 48% p.a. The minimum loan term is 13 months and the maximum loan term is 24 months. WARNING: This comparison rate is true 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. Click here to see a worked example.