Ratesetter is a peer to peer platform which offers affordable rates for investors and borrowers both. It is a marketplace, not a bank. People use this platform to borrow money and are matched with people who want to invest.Find out if RateSetter can provide the right opportunity for you.Basically, RateSetter’s goal is to make peer to peer lending as simple as possible for people. the platform assigns your money automatically to both business and people who are looking to borrow money. It also aims to cover the late reimbursements automatically via a compensation fund. The rates offered on the site are not as high compared to its competing sites like Funding Circle where a user takes a much active role in selecting the way they can lend their money however are exposed to borrower defaults. However, if you want to have a simple experience which is just as simple as putting money in the savings account and get better returns with a minimal risk then RateSetter is a suitable choice for you, even though the site is an opportunity to invest rather than save.

How RateSetter works?

Ratesetter provides three types of investment choices.

Cash ISAs Alternatives

  • Rolling account: this is just like an easy access account. The investment is repaid by the borrowers every month and then it is reinvested in the RateSetter’s market. Its current average rate is 3%.
  • All rates are after fees but before tax. With RateSetter the minimum investment is £10, and people can invest in either an ‘everyday’ account or in the RateSetter’s Innovative Finance Isa, where the returns are paid tax-free.
  • 1-year account: in this, the money invested remains in loans for up to one year. Its current average rate is 4.1%.
  • 5-year account: the money is invested in loans for up to 5 years. Its current average rate is 5.9%.

When you choose the investment, you want then you have to select the interest rate you need your money to lend out at. If you wish to lend your money immediately, in order to start earning right away you can go for the ‘Market rate’ that will be the lowest choice. However, you can wait to be matched with a borrower at a high rate.

You can use RateSetter’s personal loans for?

RateSetter’s personal loans can be used for numerous significant life events, for example:

  • Buying a car
  • Holidays
  • Weddings
  • Medical bills
  • Home renovations
  • Debt consolidation
  • Legal fees

Personal loans are a comparatively straightforward method of borrowing money through a structured repayment program. with RateSetter a personal loan can allow you access to more money, so you can pay for major life events.

Borrowing terms

  • Maximum borrowing amount: £35,000, but depending on special circumstances
  • Minimum borrowing amount: £500
  • Borrowing term: 6 months to 5 years, but depending on special circumstances

What kind of personal loans does RateSetter offer?

Currently, RateSetter offers its customers an unsecured personal loan at the time of writing, the loan can be used for a number of different purposes. This personal loan can have both fixed and variable interest. Loans can be of amounts from £2,000 all the way up to £45,000.

Eligibility criteria for RateSetter?


  • Age limit is 21 or over
  • You must have a building society or UK bank account
  • You must have a good credit history
  • You are a resident for three or more years
  • You have a steady cause of income

Business borrowers will have to meet the following conditions:

  • Minimum of three years of trading in the UK with at least two years of filed accounts
  • three months acceptable bank statements
  • Acceptable credit search of the business and all of its stakeholders
  • Property development loans are considered more “personal” and don’t have a rigid set of

conditions to meet. The loan agreement depends on the decision of account managers.


  • You must be18 or over
  • You need to have a building society or UK bank account

How to get started?

For property development loans

  • Email RateSetter: send an email to one of RateSetter’s account managers and get a reply in 2 days.
  • See a representative: member of the team will come and see you on the site.
  • Obtain your decision: You will obtain a decision in five working days.

For business borrowers

  • Apply online through site: Complete basic information online.
  • Talk to a relationship manager: Talk with RateSetter’s relationship manager who can take you through a personalized proposal
  • Collect funding: After signing your loan contract your funds will be in your account the subsequent business day.
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RateSetter is a peer to peer platform which offers affordable rates for investors and borrowers both. It is a marketplace, not a bank. People use this platform to borrow money and are matched with people who want to invest.