Private Loans – Private Lenders For You

Private loans are one of so many options available for taking fast loans in this day and age. You don’t have to go to your local branch and file hundreds of bits of paperwork and wait hours to receive a loan anymore. Especially with online lender-finders such as Monzi, who can enable you to complete the cash loans application process digitally.

Private lenders are not exempt from the law and may have constraints without a banking license. However, this allows for flexibility. There’s a lot to know about private lenders and how they may be able to work with you. Monzi has put together this guide to help you understand the ins and outs of private lending and the Monzi lender-finder.

Please note, specific ideas and products presented in this article may not be on offer 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 are private loans?

Private loans are loans for individuals, from individuals. This is in contrast to the typical method of an individual securing a loan from a bank. In this sense, private loans may come from either a wealthy individual or a private organisation separate from a bank.

Whilst, regardless of who supplies your loan, confidentiality is your right, the ‘private’ aspect, in this instance, refers to the lack of institution. Private loans must come from an individual or business that is not a part of a financial institution. This means your loan won’t be provided by a bank or a credit union. Typically private loans are personal loans and lack the specifics of financial institution loans. However, you may be able to receive private mortgage loans and private car loans in some instances.

How do private loans work?

Monzi can’t say how all private loans work. This is because, while private lenders do have to follow the law, they have the flexibility to operate by terms that are as lenient as they can allow for. Moreover, this is why private loans can be so attractive; the approval criteria are much more relaxed than they are for a bank.

Monzi, however, can tell you about our lender-finder service. All of the lenders in our network have varying approval criteria; they are fair and just. Monzi lenders understand that life happens, and sometimes your credit score may not be in the best condition. For this reason, the lenders in our network may be willing to consider your life circumstances as well as your credit report. Or, in some instances, they may not even check your credit at all. As required by law, however, Monzi lenders must ensure you do have the capacity to repay your loans. Meaning, if you don’t receive approval, it is most likely because the lender does not believe you have the means to make the repayments. Thereby saving you from debt you cannot manage.

You can find a private lender in your own time. However, this may be pretty difficult and does not mean that you will successfully find a lender who can help. That’s what’s so great about the Monzi lender-finder; we’ll do the hard work for you.

Where can you get private loans?

Private loans are also known as personal loans, and there are several different personal loan providers available. If you are looking for private home loans, however, this may be slightly trickier. For a mortgage loan, consider contacting a broker who may be able to put you in touch with the right lender for you.

Monzi, in this instance, is kind of like a broker. You can use our lender-finder tool to get in touch with private lenders. We aren’t lenders ourselves, just intermediaries. However, we’ll help you to find a lender who may be able to approve you in as little as 60 minutes. Please note that you will have to apply within business hours for you to match during this time frame. This means, if you apply at 11 pm on a Friday, you won’t be able to match until Monday morning. You can apply whenever; just keep in mind the time frames our lenders and staff operate within.

Personal and private loans may be significantly faster transactions than bank loans, especially with Monzi. We are 100% online and paperwork free to cut the hassle out of the process.

Are private loans legal?

Yes. In Australia, providing you have the correct license, peer to peer lending is entirely legal. All lenders must adhere to the Australian Securities and Investments Commission’s (ASIC) regulations. If they have done so, you know the company you are working with is legitimate and trustworthy. According to ASIC, these private lenders are not allowed to mislead their borrowers. Meaning if you were to get tricked by one of these lenders, you would get government assistance.

Often, people turn to a private lender when they cannot get what they are looking for from a bank. This may be because they don’t have suitable credit or income to meet the bank’s criteria. Private lenders typically have more relaxed criterion and can help you get back on your feet. Some of Monzi’s lenders, for example, may not require a credit check at all if you can prove you have the proper income and collateral to be trustworthy. Other lenders in our network may want to look at your credit report. However, they will still be willing to work with you if your score isn’t so great.

Whilst there are some malicious personal lenders in circulation, the majority are looking to help you out. We’re all human; we all make mistakes – Monzi lenders get that.

Private loans from individuals Australia

There are several potential private Australian lenders for you to turn to. However, it can be overwhelming. That’s why our goal here at Monzi is to give the problem of finding a lender an easy answer.

Most of the lenders we work with are Australian individuals who know that sometimes you need a little help getting things done. Some of the other lenders we work with are a part of small Aussie organisations separate from the Australian financial institutions. No matter who you match with for your small cash loans, you will receive a fair evaluation that looks out for your best interest. Why not give Monzi a try and check out the lenders for private loans in our network.

Private loans vs bank loans

Not everyone suits the criteria of a bank loan. In the same way, not everyone will believe a private loan is for them. Having said this, let’s discuss why you may favour a particular loan.

Bank loans

Bank loans typically can offer much lower interest rates. This is because they generally are much wealthier than the typical private lender. In an economic crisis, banks can also provide much more stability than a private lender. However, economic crises are usually few and far between. A bank loan may be limited in what flexibility they can offer you.

Private loans

One of the most significant selling points of private lending is the accompanying flexibility. These lenders are far more likely to consider your personal needs and life circumstances. You may also receive a more personal customer service experience as personal lenders aren’t usually overwhelmed by client requests. Keep in mind that the interest may be higher.

Can private loans be forgiven?

If you have come to the point where you absolutely cannot repay the loan, you may need to seek loan forgiveness. This is possible for private lenders but uncommon. Monzi cannot say what the outcome of this may be as it depends on the lender. But it is more likely you may receive an alternative payment plan rather than complete loan forgiveness. Typically, your lender will not loan to you in the first place if it is unlikely you will be able to repay. However, sometimes life falls to pieces unexpectedly. If this does happen, contact your lender immediately and be upfront. Honesty is the best policy.

Can you declare bankruptcy on private loans?

If you should have the unfortunate luck of needing to declare bankruptcy whilst having an outstanding loan, your lender may drop the loan. However, should this happen, if your loan is secured, your lender could have this security repossessed. This is not always the case; you may instead receive a repayment plan that accounts for your current financial situation in some instances.

Keep in mind that bankruptcy is not an easy way out of a loan. If you are struggling with debt, you must speak with a financial advisor. Contact the National Debt Helpline for advice from a free financial counsellor.

Are private loans bad?

No. Personal and private loans can be advantageous if you have the means to cover them. Private loans are generally easier to obtain and can either help you out between paychecks or cover home renovations or holidays. Personal loans and peer-to-peer lending earned this reputation in the past because this side of the industry wasn’t well regulated. It was giving people the opportunity to scam unknowing consumers out of their money. It was also easy to fall into a debt cycle.

Now, however, the proper regulations are in place to prevent this. These regulations require all lenders to ensure that their borrowers have the appropriate means to repay their loan. If they don’t do this, they can get in serious trouble with the law. It isn’t all on the lenders, however. You should not apply for a loan that you know you won’t be able to repay. Debt cycles can be dangerous things. If you need money help, start by seeing if there are any Centrelink grants available to you. Or, check out the government’s MoneySmart site for more financial advice.

Applying for private loans

When should you apply for private loans?

You can use personal loans for anything, provided this ‘anything’ isn’t illegal. You should consider a personal loan through a private lender to act as boat loans, a travel loan, home improvement loans, or a bond loan. There’s no limit to what you can use your loan for. However, there are some instances where a private lender may be the better option.

This could include not having the required credit score for a loan from a financial institution. Credit reports can be restrictive when it comes to bank loans. If you know you have the means to repay a loan but the state of your credit limits you, why not try a private lender. Private lenders may also be helpful when you need fast approval loans. This is because these types of transactions are often paperwork free, which speeds up the process. Generally, if you’re looking for a bigger loan than your credit card limit without the hassle of the bank, a private lender may be a good choice.

Can you consolidate private loans?

Yes. In Australia, consolidation and refinancing are valid options for almost any type of loan. Consolidation is typically the act of taking out a new loan to pay off multiple little loans you have lying around. This, in turn, rolls all your debts into one big loan and makes it far more manageable. You may want to utilise consolidation if you have multiple small personal loans that are starting to get out of hand. With consolidation, you only have to deal with one lender, one debt, one term, and one interest rate. Speak with a financial counsellor to determine whether consolidation may be a good debt management solution for you.

Refinancing is essentially the same. However, refinancing is generally only used when discussing property. This is because mortgage loans are some of the most significant loans available. Which means they come with long terms and competitive interest rates. If you plan to refinance your home loan, you will take out a new loan, just like you do with consolidation. You then use the new loan to pay off your original mortgage. However, the goal with refinancing is to secure a better rate or term. If you do this strategically, you may be able to cut years off your mortgage and potentially save money. Speaking with a mortgage broker can help you decide whether you’d benefit from refinancing. Essentially, however, these concepts are the same.

Private loans lenders for bad credit personal loans

One of the most common reasons people turn to private lenders is lenience. Private lenders don’t need to be as strict with their money as a bank would need to be. For this reason, people with unflattering credit scores tend to seek out personal and private loans.

There is a line, however. Requiring a private lender because you need someone to take a chance on you is not the same as needing one you know you can’t repay. If you are in a situation where you know you cannot repay a loan yet want access to easy loans, you need to seek professional advice. You will only worsen your situation if you somehow receive approval for a loan you can’t repay.

The lenders in Monzi’s network want the best for you. They aren’t looking to close a deal on a poor soul who doesn’t have the appropriate capacity. If you have bad credit, you may be able to request not to have a credit check conducted. Some lenders may permit this; however, not all do. Regardless, if you do have bad credit and your lender does a credit check, this doesn’t mean you can’t get approval. Our lenders also look at income, your job stability, and existing debts to inform their decision. You won’t know whether you qualify without applying, and your lender may be able to counteroffer you a lower sum if you don’t qualify for your initial request.

Do private loans check your credit score?

Continuing from the previous paragraph, whether a private lender checks your credit score is dependent on their operation regulations. Each private lender typically operates against its own strict rules. For this reason, Monzi cannot give you a definite answer regarding whether our lenders will conduct a credit check. In response to this question, we do say that a credit check is not the be-all-end-all of your application.

Private loans are not as strict as bank loans. If you have a bad credit history, you may still qualify. This is because our lenders look at the big picture. If you have been recently made redundant but are about to start a new job, your lenders could conclude that you may still qualify. Providing you can show that you have had a consistent income over the last three months, any outcome is possible. If it is over $2,000, being able to secure your loan may also show your lender that you are serious. You are increasing the likelihood of obtaining a loan.

Should you take a private loan for study?

In Australia, if you intend to continue with tertiary education, there is little need to take a third party loan. This is because the government supplies the opportunity for you to repay this debt through HECS-HELP. You can read about this further on the government’s StudyAssist site. Essentially HECS-HELP loans are offered to Australian (and some New Zealand) citizens to make studying at university more accessible. With this kind of government-granted loan, you won’t have to pay off your student loans until you earn a specific amount of money per year.

If, however, you need some help with paying for your child’s school fees, private loans could be helpful. However, considering the nature of this type of fee, think about first reaching out to Centrelink to see if you are eligible for any grants. If you are still struggling, try a financial counsellor before opting for a loan, or approach the school to inquire about potential payment plans.

Can anyone become a private lender?

Yes, provided you are rich enough and have the appropriate legal backing to enter this industry. You will first need to ensure that you are fully accredited and have the correct licensing to do so. Once you are properly registered and qualified, you may choose to go it alone or to fall into a network like Monzi’s, where we match customers to you.

Monzi cannot speak on the logistics of becoming a private lender. However, if this is an industry you want to operate in legally, we wish you well in your future endeavours.

Positives and negatives of private loans

As with all things financial, there are positives and negatives to opting for private loans. Monzi believes it is your right to be thoroughly educated on all kinds of loans before opting in. Having said this, here are the pros and cons of peer to peer lending:


  • Flexibility: private and personal loans are iconic for the flexibility they offer. Primarily this flexibility is concerning approval criteria.
  • You may not need to secure: if your loan is less than $2,000, you may not be required to secure your loan against an asset.
  • Easy management: personal loans are great for loan consolidation as they’re easy to take out and often allow you access to enough to cover your existing debts.


  • Interest: the interest is often higher than many other loan types. This is because private lenders open themselves up to more risks and need to be covered if you don’t repay.
  • Higher than your credit card: the repayments will most likely be higher than your credit card repayments.
  • Debt: private loans can slip out of hand if not managed correctly. Ensure you have the means to cover your loan and know where to seek help if you get in trouble.

What are other types of loans available to you?

There are a plethora of loans available to you on the market, provided you qualify for them. Whether it is land loans, caravan loans, or emergency loans, knowing what’s on the market may be useful. Personal loans can cover a lot of what these specific loans are offering, as you can use a personal loan for just about anything.

Keep in mind, however, that it’s better to pay for some things in cash. For example, travel loans can be beneficial for a much-needed getaway. But, it may be more worthwhile to wait until you have the cash saved. The same goes for a new car loan. Cars depreciate quickly, and taking a loan to cover the cost could result in you losing money. Be strategic about your financial decisions and avoid taking any type of loan impulsively.

How long are the terms of private loans?

The length of the loan term for private loans varies based on the individual lender. The terms for lenders in Monzi’s network will vary. However, you can expect to receive 12 months to two years to repay your loan.

If you are approved, when your lender contacts you, they will be specific about the term that accompanies your loan. If your loan is over $2,000, you can expect a term closer to two years in length.

Use Monzi personal loans instead

Monzi works with several private lenders to help you obtain the personal loan you are chasing. However, we are not lenders ourselves. We are the intermediary, and our entirely free service works to remove the hassle of finding a private lender yourself.

Monzi may be able to help you with loans ranging from $300 to $10,000. The state of your credit score won’t prevent you from applying. Please keep in mind that if a Monzi lender denies your application, it is not a result of some personal vendetta. Our lenders are working in your best interest. If they believe that approval will hurt you more than it will help, you’ll receive a denial.

In some circumstances, you may apply for the maximum amount, and your lender may see you don’t have the capacity for this. However, you could have the capacity for a smaller amount. In this case, your lender may be able to counter offer you. If you think you’d like to work together with our lenders to see how they can help you, apply for private loans with us today!

How can Monzi help you?

To make it easy for you, Monzi is as simple as 1, 2, 3…

  1. Click ‘apply now’ to get started on your application. Fill in the required information and click submit.
  2. Wait (up to 60 minutes if you apply during business hours) while we find a lender who may be able to help you.
  3. Respond to your lender. Once you match, your lender will reach out to you, then all that’s left is your application assessment and the signing of a contract.

See, we take the hassle out of personal loans. So, what’re you waiting for? Get started now!

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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


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


13 months (minimum)

24 months (maximum)


48% Annual Percentage Rate (APR)

67.41% Comparison Rate p.a.


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


13 months (minimum)

24 months (maximum)


21.24% Annual Percentage Rate (APR)

48% Comparison Rate p.a.


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.