Risk-based Personal Loans – Everything You Need To Know

Get a personalised interest rate based on your unique financial situation. You may be rewarded for being a trustworthy borrower. Good credit should mean something, right? Read on and Monzi will explain all. Find out if risk-based personal loans are an option for you. Let’s go.

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.

Risk-based personal loans explained

Risk-based personal loans adjust your interest rate to fit the level of risk that you as a borrower represent. In other words, if you’ve got a good credit history then you may be offered a lower rate than a borrower with a history of defaults.

In short, it’s all about personalisation and reward. Why should interest rates be one size fits all? If you’re a reliable borrower then you deserve to be rewarded for that. Lenders offering risk-based personal loans believe this.

When you apply, your application will be assessed to determine both your suitability for credit and your credit risk. From there, you may be offered a loan and a corresponding personalised interest rate. Usually, this rate will fall within a range advertised by the lender.

Risk-based personal loans: calculating your rate

Calculating your risk-based interest rate isn’t as simple as looking at your credit report or income, there are a number of factors that must be considered. These factors relate both to you personally as a borrower and the features of your cash loan.

See below for our quick breakdown of what goes into determining your rate:

Loan amount

The less you borrow, the lower the risk for your lender. After all, their potential losses are lower if you fail to make your repayments.

Repayment term

While this won’t always be the case, your chosen repayment term may reflect your risk. If you’ve applied for a small loan but chosen a long period then lenders may believe that you lack the capacity to make repayments. As a result, you may be considered a risk.

Secured or unsecured?

Secured loans are guaranteed by one of your assets. As a result, lenders will have a way to recoup any losses should you default. This reduced risk means that you may be offered a lower rate.

Your financial situation

Lenders may consider your savings, employment status and other key financial details to determine your level of risk. If you currently have stable employment then you will be looked upon more favourably than someone just starting a new job.

Can I get risk-based personal loans with bad credit?


Now more than ever, there are a range of online lenders who might be willing to offer loans to bad credit applicants. In short, it’s about a change in perspective. Rather than simply looking at your credit score, lenders look at your income and expenses too in order to get a picture of your financial situation.

As a result, if you’re in a secure financial situation now then a few past mistakes might not stop you accessing the online credit you require. However, keep in mind that not all lenders will offer bad credit personal loans. With this, approval may hinge on the lender you are dealing with.

In addition to this, remember that offering loans for bad credit borrowers is risky for lenders. As a result, you may need to pay higher rates or additional fees to account for this.

Risk-based personal loans no credit check: are they available?

Some lenders may offer loans without a credit check. However, for the purposes of risk-based personal loans it is unlikely that they will be available.

In short, credit checks are a way for lenders to assess your reliability as a borrower. As a result, they play a crucial role in determining risk.

If your credit check shows that you have consistently made repayments on time then you’ll be considered low risk. On the other hand, a poor credit score and a spotty repayment history means that you could be classified as a default risk.

Given this, it’s unlikely that you will be offered a risk-based personal loan no credit check. It will be a necessary step for lenders so that they can calculate your level of risk.

Risk-based personal loans for Centrelink customers

Some lenders may offer loans for benefit payment recipients. However, lenders may deem Centrelink borrowers riskier as they typically earn lower incomes. As a result, the costs associated with risk-based loans for Centrelink customers may be higher.

In addition to this, when it comes to Centrelink cash loans, keep in mind that not all lenders will offer these products. This is because while some lenders will consider benefit payments to be legitimate income, others may not. As a result, approval may depend on the lender that you are dealing with.

Risk-based personal loans unemployed

If you’re unemployed, you may think that accessing credit will be impossible. While it will undoubtedly be difficult, there are potentially some lenders willing to offerfast cash loans unemployed.

Having said this, this will only be possible if you can prove that you are earning a consistent income. For unemployed individuals, this won’t be a wage. However, it could take the form of benefit payments or even rent payments that you receive from an asset.

If you cannot show this then you will be ineligible and your application will be denied. Moreover, even with this, approval is not certain. After all, lenders retain the right to approve or deny applications where they see fit.

Finally, keep in mind that if you are unemployed you will be considered a risky borrower. As a result, if you are approved, you may need to pay higher rates or fees on your risk-adjusted unemployed cash loans.

How do I compare risk-based personal loans?

Comparing quick loan products is an absolute must. In short, finding the right loan product can not only save you money but it can ensure that you lock in affordable terms too.

As a guide, loan comparisons should include:

  • The interest rate range: with risk-based personal loans, lenders will provide a range of rates. Compare the ranges on offer and consider your level of risk.
  • Fees and charges: the additional costs associated with your loan. Minimising these will minimise your total costs.
  • Comparison rate: combines your rate and fees into one easy figure representing your total loan cost.
  • How much can you borrow and what repayment terms are on offer: some lenders may specialise in small loans while others offer a wide-range of products. As a result, ensure that you can borrow the amount you require.
  • The lender: read past user reviews and ensure that you are only dealing with licenced lenders. Avoid any lender that does not hold a current credit licence.

For further details on how to compare personal loans, visit the free Moneysmart website. There you will find a range of easy-to-understand advice to help you improve your financial decision making and management.

Are risk-based personal loans better than standard personal loans?

In short, potentially. However, this will not always be the case.

Obviously, if you have a good credit score and a strong track record of being a reliable borrower then a risk-based personal loan could be a great option. You’ll be able to access a lower rate which will ultimately reduce the total amount that you pay.

On the other hand, if your financial situation is less than perfect then the benefits of a risk-based personal loan may be minimal. In other words, it may be not different to applying for a standard bad credit personal loan.

Given this, at the end of the day, whether a risk-based personal loan is worth it will depend on your unique financial situation.

Do all lenders offer risk-based personal loans?


Only some lenders will offer risk-based personal loans. As a result, before you apply, you will need to consult the costs and rates offered by the lender.

Even if you would prefer to apply for a risk-based product, don’t be afraid to shop around. Compare a range of lenders and loan products (risk-based and non risk-based) to find the one that suits your circumstances the best. If you are able to find a more competitive rate or a loan with fewer fees then you can potentially save yourself a ton of money.

How do I know if my lender offers risk-based personal loans?

The simple way to check if a lender offers online finance on a risk-adjusted basis is to check their cost breakdowns. Usually, this information is listed on their website and outlines all the key details including rates, fees, charges and loan amounts.

If a lender offers risk-based pricing then they will list interest rates as a range (e.g. 3-3.5% p.a). On the other hand, lenders who offer a flat, non-negotiable rate will simply list a single percentage (e.g. 3% p.a).

It will then be up to you to decide which credit provider is right for you. While risk-based personal loans may offer more competitive rates to some borrowers, not everyone will qualify. As a result, a standard rate may be a realistic option.

Risk-based personal loans with easy approval

It’s true that some lenders may offer easy loans. In other words, they may have criteria and requirements that aren’t quite as strict as those applied by other lenders. As a result, they could be a manageable and accessible credit option for borrowers with less than perfect circumstances (e.g. Centrelink customers, bad credit borrows, etc.).

However, always remember that approval is not certain. Moreover, if your easy approval loan is risk-based then your bad credit or other such circumstances may result in additional fees or higher rates. As a result, consider your options before applying for an easy loan online.

Risk-based personal loans: a same day cash option?

Need your cash on the same day? We get it, you don’t want to wait.

Unfortunately, same day cash loans aren’t always possible. After all, lenders must tick a number of boxes before you receive an outcome.

Having said this, to give yourself the best chance of receiving your cash fast, there are a few things that you can do.

Firstly, you must apply during business hours. Moreover, you must supply all the necessary details when you submit your application.

If you do this, then your application can go off without a hitch. You may receive an outcome before you know it and have your cash soon after. However, keep in mind that it’s often a good idea to anticipate a waiting time of up to one business day.

Personal walking on a tightrope after applying for risk based personal loans

How can I get a better interest rate?

With risk-based personal loans, your interest rate is tied to your level of risk. Obviously, if you are considered a risky borrower then you will be offered a higher rate than a trustworthy borrower with a good credit history.

With this, accessing a better rate is all about minimising the lender’s risk. Obviously, the easy way to do this is to have a good credit score and a history of making repayments on time. However, this may not be possible for everyone. Luckily, there’s another option.

If you apply for a secured loan and attach an asset (e.g. your vehicle) as security then lenders often will apply a lower rate. This is because the loan is guaranteed. In other words, if you default on your repayments, your lender can repossess the asset and sell it to recover their losses.

Ultimately though, your lender will determine the rate you are offered. These are simply two options that may help.

Will personalised rates become more popular in the future?

In today’s world, personalisation really is the name of the game. Whether it’s home loans, personal loans or even insurance, there has been a significant push to treat each person as an individual. In other words, the days of one size fits all may be coming to an end.

While obviously there are more steps involved, customising a rate to suit your level of risk makes sense. Through this, lenders are able to offer more competitive rates and can even reward good credit too.

While there’s still a long way to go, there’s no doubt that personalisation is becoming a more popular option. With risk-based personal loans you might be able to access a rate that reflects your situation.

Can I apply for risk-based personal loans online?


The online lending market has exploded in recent years. As a result, there are a number of lenders who may be able to offer the risk-based pricing that you desire.

As they’re based online, it couldn’t be easier. All you will need to do is submit a simple online loan application and provide all the necessary information. From there, they’ll conduct an assessment and provide you with an outcome ASAP.

One thing to keep in mind is that if you are seeking risk-based personal loans, ensure that you read each lender’s term and conditions. While some online lenders may offer personalised rates, others will not. As a result, you will need to do your research.

Do payday lenders offer risk-based loans?

Instant payday loans are a small cash option many Aussies use to help them cover an expense that just cannot wait. In short, you can apply for cash amounts up to $2,000 and have them repaid over a period of up to 12 months.

However, whether not these online payday loans will be offered on a risk-adjusted basis will depend on the lender that you are dealing with. While some reward customers with good credit by charging lower rates, others will simply offer a standard fixed product.

Finally, note that as we’ve mentioned these payday loans are typically only offered up to $2,000. As a result, you may need to apply for a personal loan if you’re after a larger cash sum.

Do lenders offer risk-based car loans?

In short, Monzi cannot say.

Some lenders may offer risk-based car loans at their discretion. However, not all credit providers will offer these products. In other words, many will simply charge a standard rate based on the features of your loan.

The good news is that if you’re after a new or used car loan online then Monzi may be able to help. We work with lenders who can offer car loans ranging from $5,000 to $30,000 with repayment terms ranging from two to five years. Apply today and you could have a new set of wheels before you know it.

Do risk-based personal loans hurt your credit?

In short, risk-based personal loans may affect your credit score. However, it will come down to how you manage your loan.

On a positive note, if you make your repayments on time and pay off your loan without issue then your credit will not be hurt. In fact, it could even improve.

On the other hand, if you miss repayments, make them late or default on your loan then the impact on your credit can be significant. All three of these scenarios will result in your credit score taking a hit which may limit your ability to access credit in the future.

What is the largest person loan you can get?

Typically, lenders offering personal loans will only offer cash amounts up to $10,000. However, some may only deal exclusively in small cash loans of up to $2,000. As a result, you will need to research the loan products offered by each lender before applying.

If you need a loan of greater than $10,000 then that’s okay too. Banks will often offer personal loans ranging into the tens of thousands while a handful of online lenders may too.

Remember though that you will need to repay any money that you borrow. As a result, it’s usually a good idea to only borrow the minimum amount you require.

What are the monthly repayments on a $10,000 loan?

In short, it’s impossible to provide an exact answer. This is due to the fact that there are no standardised repayments. Instead, your repayment amount is calculated based on your loan term and interest rate. As a result, repayments will vary.

In terms of selecting your repayments, aim to maintain a balance between efficiency and affordability. While getting out of debt ASAP is what we all strive for, you must still ensure that your repayments fit comfortably with your budget. In other words, don’t compromise your ability to afford your day to day costs just to repay your debt sooner.

To get an estimate of what your repayments may be, consider using a loan repayment calculator offered for free online by a number of financial institutions.

Risk-based personal loans and Monzi

Interested in applying for risk-based personal loan? At Monzi, we might be able to help.

In short, through our lender-finder service we match everyday Aussies looking for fast cash loans with a range of top notch lenders. In fact, you can potentially borrow amounts ranging from $300 to $10,000.

However, having said this, we cannot guarantee that you will be offered a risk-based personal loan. Lenders differ in the products that they are willing to offer. As a result, some may only be prepared to offer fixed rate loan products. These may still be a viable option if you have an immediate expense to cover.

Am I eligible to apply with Monzi?

Before you begin your application, there are four criteria that you must meet in order to be eligible. Don’t worry, they’re as simple as can be. Check them out:

  • At least 18 years of age.
  • Australian citizen or permanent resident.
  • Hold a current email address and contact phone number.
  • Possess an online savings account with at least three months of history.

Certain that you meet the requirements? It’s time to apply.

Monzi’s application process: the quick explanation

At Monzi, we’ve made applying simple. We’ve refined our process down to just a few easy steps so that you can have it completed in minutes. All you need to do is:

  1. Select your loan amount and repayment term using Monzi’s loan slider.
  2. Provide the necessary personal and financial details. Hit ‘submit’.
  3. Relax while we attempt to pair you with an available lender from our network. Apply during business hours and this may take as little as 60 minutes.
  4. We’ll contact you with an outcome. If our search was a success then your lender will get in touch to begin the assessment process.

What information will I need to provide when I apply?

When you apply for a personal loan, there are a few key details that lenders will require in order to assess your application. Having these ready to go before you begin will ensure that your assessment can go off without a hitch.

So, make sure that you can provide the following:

  • Personal details (e.g. name, phone number, etc.)
  • Proof of income
  • An estimate of your current day-to-day expenses
  • Details of any current outstanding debts
  • The amount you wish to borrow and your preferred repayment term
  • Any other relevant information (e.g. benefit payments)

What loans are offered by Monzi’s lenders?

Through Monzi’s lender-finder service you can potentially access online cash loans from $300 to $10,000. Best of all, they can be used to cover almost any personal expenses that you encounter.

Given the significant range of loans on offer, lenders usually divide them into three categories. See below for the key features and details:

Small loans

  • $300 to $2,000
  • Unsecured
  • 12 month repayments

Medium loans

  • $2,100 to $4,600
  • Secured
  • 13 to 24 month repayments

Large loans

  • $5,000 to $10,000
  • Secured
  • 13 to 24 months

What’s the best reason to give when applying for a personal loan?

The best reason to give is the truth. Lenders understand that short-term cash loans may be required for a variety of different reasons. That’s why they can be used to cover almost any legitimate expense that you come across. As a result, there’s no reason for you to lie or withhold the truth.

If you do lie then issues can arise. In short, it’s a form of fraud. If a lender finds out that you lied about the purpose of your loan then your application will be denied. In addition to this, you may struggle to access credit in the future.

So, be honest and truthful. It’s a simple thing to do.

Are personal loans a bad idea?

Quick cash loans are one option that may be available to you if you have an expense that cannot wait. Moreover, as the costs are divided evenly over a fixed term, they can be an affordable option too. However, they are not the perfect solution.

Personal loans come with interest meaning that any money that you borrow must be repaid with an additional cost. In addition to this, if you find yourself unable to make repayments then there are potential ramifications for your credit score.

At the end of the day, in most cases, whether they are a bad idea comes down to how you manage them. If you borrow what you can afford to repay and make repayments on time then you shouldn’t have any issues. However, as a rule, only rely on credit when absolutely necessary.

Why was my loan application denied?

While some lenders may be more prepared than others to take on risky borrowers, approval is never certain. In other words, you will still need to meet the lender’s qualifying criteria.

In most cases, if your application is denied it will simply be due to the fact that you did not meet one of the necessary criteria. For further details, contact your lender directly and they may be able to provide you with the exact reason.

If your application is denied today, keep in mind that this will be listed on your credit report. Multiple credit applications in a short period can have an adverse impact on your credit score. So, it may be wise to consider alternative options.

Apply today

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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


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.