Daniel Foggo

Peer-to-peer lending is gaining traction amongst Australian brokers,with RateSetter yesterday announcing that it has reached the milestone of 2,000 brokers accredited with the peer-to-peer lending platform. Lending volumes through the broker channel, largely driven by car and home improvement loans, are doubling approximately every six months according to RateSetter.

Vehicle financing is the most popular reason brokers are choosing peer-to-peer loans for their clients, followed closely by funding for home improvements and loans to consolidate high-interest credit card or other bank debt.

Commenting on the growth of peer-to peer lending through broker channels, Daniel Foggo, CEO of RateSetter said, “Our brokers tell us that having access to RateSetter’s low-rate personal and business loans gives them a great way to help their clients achieve their goals, whether that is purchasing a new car or reducing the cost of their existing debts.”

He continued, “We are also getting a great reception from brokers who appreciate that we provide them with simple opportunities to deepen their relationships with existing clients, whilst helping them diversify and grow their business.”

The milestone also coincides with RateSetter passing $150 million in loans facilitated since launching in 2014.  Across both the broker and direct channels, lending has grown 50% in the last 5 months alone, after passing the $100m milestone in March.

An analysis of RateSetter’s loan data found that brokers are helping their clients finance loans worth an average $16,871, with an average loan term of 44 months at an average interest rate of 8.37% p.a.

While vehicle, home improvement and debt consolidation loans fill the top three places by loan purpose, the highest value loans are to clients seeking funds to finance their business. Broker clients are borrowing an average of $28,390 for this purpose.

Mr Foggo  concluded, “We have built relationships with more than 500 separate broker firms, all of which have been attracted to our great rates, the simplicity of our processes and the speed of our service.”

“The growth in our lending through the broker channel also reflects the growing appetite for personal loans as credit cards fall out of favour and putting more on the mortgage becomes more difficult.”

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