Specialist non-bank lender and wholesale funder for applicants of all credit scores
Non Banks, Specialist Lender, Wholesale Funder.
Non-Bank: Pepper is not a traditional bank. They don’t take deposits, and they operate under different rules.
Specialist Lender: They help people banks typically reject—such as those with unusual income, past credit issues, or self-employed individuals.
Wholesale Funder: This means Pepper also provides money to smaller non-bank lenders who then offer loans under their own brands.
Pepper Money is a global multi-award winning non-bank lender that offers a wide range of loans: home loans, car loans, personal loans, business loans, equipment loans, and more. They tend to be more competitive in terms of interest rates and fees compared to other specialist lenders, and serve borrowers of all credit scores. Traditionally, specialist lenders served borrowers with bad credit or those in a circumstance that makes it harder to source documents to prove their income. However, specialist lenders have also been helping people who are good credit borrowers but have other reasons for being rejected by the banks or LMI providers.
Pepper Money holds a solid reputation. When borrowers cannot meet the requirements of a bank, Pepper Money is often one of the next options they may look at. Their versatility helps allow self-employed applicants and other individuals that may have a non-traditional employment type or financial history, that might disadvantage them from meeting the banks’ lending criteria.
Pepper also has EV vehicle loans (which isn’t offered by every lender), making it easier for more Australians to embrace cleaner technologies.
Pepper Money is both a non-bank lender and a wholesale funder, which makes it different from many other finance companies. As a lender, it offers loans directly to people who may not qualify with a traditional bank—like those who are self-employed or have had credit issues. At the same time, Pepper also helps other lenders by giving them the money and support they need to offer their own loan products. This means Pepper doesn’t just lend to customers—it also backs other companies so they can lend too. By doing both, Pepper is able to reach more people and offer flexible loan options across the market.
Funding Through Securitisation
Pepper Money primarily raises funds by bundling its loans (such as mortgages and car loans) into packages and selling them to investors - a process known as securitisation. This approach allows Pepper to convert its loan assets into immediate capital, which can then be used to issue more loans. Since 2003, Pepper has completed over 60 securitisation transactions, raising more than A$41.3 billion.
Let's say Pepper gives out thousands of home loans to customers.
Pepper groups many of these similar loans into a large "pool"—imagine a big basket full of mortgage repayments.
This pool is then packaged into a financial product, often called a Residential Mortgage-Backed Security (RMBS).
Super funds, banks, or other institutional investors buy parts (or "tranches") of this product.
Every time a borrower repays their home loan, the money flows to the investors—just as how a company pays dividends from profits.
Pepper gets a large amount of money up-front from selling these securities, which it can use to issue new loans.
Pepper Money also uses this as a way to self fund their own Lenders Mortgage Insurance (LMI).
In addition to securitisation, Pepper Money obtains funding through debt instruments from institutional investors. For example, in March 2023, Pepper raised $1.47 billion in a conventional debt round with participation from major financial institutions like Deutsche Bank and Lloyds Bank.
Pepper Car Loans are often considered a practical option for borrowers who don’t meet the strict criteria of traditional banks. These loans are available for new, used, or electric vehicles and are particularly popular among self-employed individuals or those with previous credit issues. Reviews generally highlight Pepper’s flexibility in assessing car loan applications, especially for applicants who may not have full financial documentation or a clean credit history.
One of the helpful tools available to prospective borrowers is the Pepper Money car loan calculator, which allows users to estimate repayments based on the amount they wish to borrow, loan term, and credit profile. While it doesn’t guarantee approval, it provides a useful starting point for understanding potential outcomes.
When it comes to pricing, the Pepper Money car loan interest rate is not fixed for all applicants. Instead, it’s determined based on a variety of factors, including credit score, income stability, and the loan-to-value ratio of the vehicle. This approach can be beneficial for borrowers with solid but non-traditional financial backgrounds, though it may result in higher rates for those with more severe credit events.
In terms of product offering, Pepper car finance includes fixed interest rates, flexible repayment terms, and options for both private and dealer purchases. However, some reviewers note that the total cost of borrowing—including fees and interest—can be higher than mainstream lenders, particularly for higher-risk applicants.
Overall, Pepper Car Loans are well-suited for borrowers looking for tailored finance options outside the major bank system, but it’s important to compare rates carefully and consider the total cost over the life of the loan.
Pepper Personal Loans are designed for borrowers who may fall outside the approval criteria of traditional banks. This includes individuals with irregular income, recent employment changes, or previous credit issues. The loans are unsecured, meaning no collateral is required, and can be used for a range of purposes – such as debt consolidation, medical bills, car repairs, or home improvements.
In customer reviews, Pepper’s personal loans are often seen as a useful fallback option when banks say no. The application process is fully online, and the lender is known for applying flexible assessment criteria, especially for those with low or recovering credit scores. That said, eligibility still depends on a broader view of the applicant’s financial profile, including existing debts, income consistency, and recent credit activity.
Interest rates on Pepper personal loans are tiered rather than fixed, meaning that borrowers with a stronger financial history may access lower rates, while those with higher risk profiles may be offered higher rates. Reviewers highlight that the total cost of the loan – a combination of interest and established fees – can be higher than with mainstream lenders, so it’s important for applicants to review the total cost of borrowing rather than just the headline rate.
Loan amounts and terms are relatively flexible, with repayment periods generally ranging from 18 months to 7 years. Pepper also allows for early repayments, though the structure of exit fees (if any) should be confirmed at the time of application.
In summary, Pepper Personal Loans may suit borrowers who need access to funds quickly but don’t meet the typical lending standards. While they’re not the cheapest option on the market, they can be a viable solution for those navigating a more complex financial situation.
Pepper Home Loans are designed to serve borrowers who might not meet the rigid lending criteria of traditional banks. Known for their flexible credit assessment model, Pepper caters to a wide spectrum of applicants–from those with strong credit histories to those recovering from financial setbacks or individuals with unique income streams, such as the self-employed or gig workers.
One of the key features of Pepper's home-loan-offering is its tiered loan structure, which helps match borrowers to products based on their credit profile and financial situation:
Prime – Designed for borrowers with good credit and stable finances who may not qualify with banks due to documentation or employment type. Often comparable in pricing to mainstream lenders.
Near Prime – Suitable for applicants with minor past credit issues that have been cleared, such as a settled default or a discharged payday loan.
Near Prime Clear – Targets borrowers with more recent or moderate credit events, like late repayments or small unpaid defaults.
Specialist – Built for those with significant past credit events or irregular income. While rates are typically higher, these products allow access to home finance when other lenders may not.
Reviews from brokers and borrowers generally highlight Pepper's flexibility with income types, including casual, contract, and self-employed applicants. The lender often applies manual assessments, meaning real people review the application rather than relying solely on automated credit scoring. This can result in more personalised outcomes, especially for borrowers with a "story" behind their credit history.
However, Pepper does have some limitations. Reviewers note that, while it offers options for purchase, refinance, and debt consolidation, they are known to be stricter with high LVR (Loan-to-Value Ratio) and may not accept certain property types, such as unusual or non-standard dwellings. Additionally, their 'risk-fee' which replaces traditional Lenders Mortgage Insurance—can be high depending on the loan-to-value-ratio and product tier.
Interest rates vary across the four credit tiers, with Prime offering the most competitive rates and Specialist carrying higher pricing due to perceived risk. This means the total cost of the loan—including the risk fee and interest—can be higher than with a mainstream lender.
In short, Pepper Home Loans provide a path to homeownership for borrowers who have been turned away by banks, but it's important to weigh this against the cost of higher fees or interest for those in the non-Prime tiers.
Pepper Business Loans are tailored for small business owners, sole traders, and self-employed individuals who may not meet the eligibility requirements of traditional banks. Because they don’t take customer deposits, they can often apply more flexible lending criteria and a simplified application process than many mainstream lenders. Pepper applies a more flexible approach to income verification and credit history, making it a viable option for businesses with irregular cash flow or complex finances.
Borrowers can apply for two main types of business finance:
General Business Loans - Structured for general business needs and expenses. These loans do not require property as collateral, although personal guarantees may still apply.
Equipment Loans - Structured for purchasing vehicles, machinery, or technology critical to business operations. These are usually secured against the asset being financed and may offer more competitive rates than unsecured options.
Reviews of Pepper Money’s business lending are generally positive among borrowers who value flexibility over speed or cost. Many applicants appreciate the lender’s openness to diverse income types, including those without full financial statements or with seasonal income fluctuations. For self-employed individuals, in particular, Pepper’s willingness to look beyond standard documentation and assess the business’s overall health is often cited as a key benefit.
However, there are a few considerations. Interest rates and fees can be higher than those offered by major lenders–especially for unsecured or higher-risk applications. Some reviewers also mention longer processing times, particularly where additional income clarification or manual assessment is required. As with their other loan products, Pepper applies a risk-based pricing model, meaning that borrowers with a weaker credit history or less documentation may face higher costs. It is important for applicants to factor in the total cost of borrowing, not just the headline interest rate.
Pepper Business Loans are most suited to operators who:
Overall, reviews of Pepper Money lean moderately positive, especially among borrowers and brokers familiar with non-bank or specialist lending. Many customers highlight Pepper’s flexible assessment approach, particularly for applicants with irregular income, recent job changes, or low credit scores. These borrowers often report being approved where traditional banks declined them, with several noting the process felt fair and transparent. Mortgage brokers also frequently mention strong communication from Pepper’s support teams and clear lending policies, especially for more complex applications.
On the other hand, there are some recurring criticisms. A number of customers mention longer-than-expected settlement times, particularly for high-LVR loans or those involving more documentation. Others raise concerns about Pepper’s risk fees, which can be substantial and, in some cases, not fully understood at the outset. Negative reviews tend to come from applicants who were ultimately declined, despite meeting the minimum advertised credit scores—often due to other factors like recent defaults or the type of property being financed. These instances suggest that while Pepper is more inclusive than banks, its credit and property policies still involve firm boundaries.
In summary, most reviews reflect a lender that delivers on its promise to serve non-standard borrowers, though not without trade-offs in speed, cost, or policy complexity. Applicants who approach Pepper with realistic expectations and a clear understanding of specialist lending are more likely to report a positive experience.
Before applying with Pepper Money or any lender, it’s worth seeing how you compare across the board.
With LoanOptions.ai, you can check your personalized loan options—including offers from Pepper Money—using a smart, AI-powered platform that matches your financial profile to suitable lenders. The process is fully automated, takes just minutes, and uses verified data sources like your driver's licence, bank statements, and payslips—all without affecting your credit score.
Built on LoanOptions.ai’s latest technology (LO 3.0), the system draws on secure third-party data and includes tools like our car loan calculator and Probability of Approval models to give you a clear picture of your chances before you formally apply. Whether you’re exploring home, car, personal or business loans, the platform helps you save time, reduces paperwork, and understand your lending position—all while keeping your credit file untouched.
Chantelle is amazing to deal with, nothing was too much trouble, she was thorough and extremely helpful and accommodating to my requests. Chantelle worked out the best solution for my personal needs to move forward with my life and she ensured I was informed every step of the way.? I cannot recommend Chantelle highly enough. A huge thank you Chantelle ?
Pan Bhandge was very efficient and professional. The transaction was seamless and fast I never have to worry about anything. I'm very very busy so that matters. Not only did I get a good fair deal, it saves me from looking around.
Thank you Pan. You deserve the five star
Pan was a great help in finding me the right personal loan. He always kept me up to date with the process and was alway available should I have any questions. I really recommend Loan Options. Excellent service thanks again Pan ?
Great service quick and easy so much better than a big bank ???
More than 862 smiles, laughs & warcries
