Getting A Loan Without A Bank

For a long time, getting a loan usually meant making an appointment at your local bank brand. With physical banks less common, and people’s times more important, that’s no longer the only option for individuals. Alongside the major banks, there are many non-bank lenders offering personal and vehicle finance across Australia.  

If you’ve never borrowed from a non-bank lender before, you might wonder whether the process is different. In many ways, it isn’t. You’ll still complete an application, provide information about your finances and have your application assessed before a lending decision is made. The differences often come down to the products available, the application experience and the way each lender operates.

What Is a Non-Bank Lender?

A non-bank lender is exactly what the name suggests–a financial institution that provides loans but isn’t authorised as a bank.

That doesn’t mean they’re unregulated. Like banks, non-bank lenders assess loan applications, verify a borrower’s ability to repay and must comply with Australia’s responsible lending obligations.

Some specialise in certain loan types, while others offer a broader range of products. Loan amounts, fees, repayment options and eligibility requirements can vary, so it’s worth comparing more than one lender before deciding where to apply.

Is the application process different?

No as many as many people expect.

Whether you apply with a bank or a non-bank lender, you’ll generally need to provide information about your income, employment, expenses and financial commitments. The lender will then assess your application against its lending criteria before making a decision.

Many lenders now offer online applications, allowing borrowers to submit documents electronically rather than visiting a branch. The time it takes to assess an application varies depending on the lender and the information provided.

What kinds of loans do non-bank lenders offer? 

That does depend on the lender, but many banks and non-bank lenders may both offer products such as:

• Personal loans
• Car loans
• Motorcycle loans
• Caravan and camper trailer loans
• Boat loans

Not every lender offers the same products or loan features, so it’s worth comparing your options before applying.

Customer Support

Customer service looks different depending on the lender you choose.

Traditional banks often provide branch networks alongside phone and digital support, while many non-bank lenders operate primarily online or over the phone. Consider how you’d prefer to communicate if you have questions during the application process or throughout your loan.

Reading customer reviews and understanding what support is available can also help when comparing lenders.

Are non-bank lenders safe?

Yes—as long as you’re dealing with a legitimate Australian lender.

Banks or a non-bank lenders are both required to comply with consumer credit legislation, including responsibly lending obligations. 

Licensed lenders must meet obligations under legislation including the National Consumer Credit Protection Act 2009 and Anti-Money Laundering and Counter-Terrorism Financing laws. They are also required to clearly disclose important information about loan terms, fees and interest rates before you enter into a credit contract.

If you’re unsure about any lender, it’s worth checking that they hold a valid Australian Credit Licence before applying.

Choosing between a bank and a non-bank lender

There isn’t a one-size-fits-all answer. 

Rather than focusing on a single feature like the interest rate, compare the overall loan, including:

• Loan amounts available
• Fees and charges
• Repayment options
• Eligibility requirements
• Customer support
• Application process
• Features such as early repayment options

Taking the time to compare lenders can help you find a loan that suits your circumstances and borrowing needs.

Learn More About Rapid Loans

Rapid Loans is an Australian non-bank lender offering secured personal and vehicle loans. If you’re considering a loan, our team can explain our products, eligibility criteria and application process so you can decide whether they’re right for you.

This article is general information only and does not constitute financial or credit advice. It does not take into account your personal objectives, financial situation or needs. When you apply for a loan with Rapid Loans, your application will be assessed against our credit eligibility criteria. All applications are subject to approval. Terms and conditions, fees and charges apply.