Car finance drives P2P growth in Australia
CAR finance is one of the driving forces behind the growth of peer-to-peer lending among brokers in Australia.
According to new research from RateSetter’s Australian business, one fifth (20 per cent) of all broker-led loans on the platform are used for car and vehicle finance, with an average loan value of AUS$13,186 (£8,077).
Meanwhile, home improvement loans account for 19 per cent of the platform’s broker-led activity, with an average loan value of $14,299, while 12 per cent of loans are used for debt consolidation, and seven per cent are used for education.
Business borrowing accounts for nine per cent of total broker loans, but has the highest loan values with an average of $28,094 per loan.
The data refers to loans driven by the platform’s 2,000-strong broker network, which has helped fuel the rise of P2P across the country. RateSetter has recently passed its $150m milestone in lending through both broker and direct channels.
“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,” said Daniel Foggo, chief executive of RateSetter Australia.
“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 research also found that lending volumes through the broker channel have been doubling approximately every six months. Brokers have been helping their clients to finance loans worth an average of $16,871, with an average loan term of 44 months at an average interest rate of 8.37 per cent per annum.
“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,” added Foggo. “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.”