What is a private loan?

A private loan is a loan offered by a lender who is not your traditional lender like a bank, building society or credit union. Instead, you are borrowing money from an individual or company that has access to its own private funds.

Generally speaking, private loan providers specialise in offering short term borrowing and finance solutions that traditional banks are unable to assist with.

When would you need a private loan?

It is usually the case that people turn to private mortgages and loans when they find themselves unable to obtain finance through more conventional channels. When it comes to private home loans, these generally fail into one of four categories:

Poor Credit history

If you have a poor credit history, particularly if you have defaulted on any of your liabilities, you will get knocked back by the traditional lenders. Private loan providers can assist you in this instance. These loans come with a higher rate of interest and will usually be short term and designed to give you an opportunity to improve your credit history, e.g., through consolidating existing debts.

Low documents or low serviceability

If you do not have sufficient financial history in terms of your income as required by the conventional lenders, or you do not qualify for a loan through the bank’s assessment criteria, you may then have an option of using the services of a private lender.

Loan Purpose

If the purpose of the loan does not fit under the normal criteria of the banks, you can use the private lender services.


If your property is not accepted as a valid security by lenders, e.g. half completed house, private lenders can assist you secure your finances

How can we help?

Finnciti has a range of private lenders on the panel who can assist you secure short term finances. We negotiate rates on your behalf and make the lending experience seamless.

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