Non-Bank Lender
Last reviewed 13 June 2026 by Nick Lim, finance broker (FBAA).
Non-Bank Lender is a lender that provides loans without holding a banking licence or taking deposits, funding instead through wholesale markets, funds or private capital. In Australia non-bank lenders are regulated by ASIC under a credit licence rather than by APRA, and they often serve borrowers the banks decline, such as the self-employed or those with credit issues. They are central to a low doc loan, a self-employed home loan and specialist commercial finance.
Why Non-Bank Lender Matters
Non-bank lenders exist to fund the borrowers and deals that fall outside rigid bank credit policy.
- No banking licence and no deposits taken
- Funded by wholesale markets, funds or private capital
- Regulated by ASIC, not APRA
- Often approve a self-employed home loan a bank declines
- More flexible on income, credit and security
Common Features of Non-Bank Lender
- Credit licence rather than a banking licence
- Wholesale or private funding lines
- Specialist and low-doc products
- Faster, more flexible credit decisions
- Rates set for the added flexibility
Official reference: asic.gov.au
What is a non-bank lender?
A lender that makes loans without a banking licence or deposits, funding through markets, funds or private capital.
Are non-bank lenders safe?
They are regulated by ASIC under a credit licence; the main difference is how they fund, not whether they are licensed.
Why use a non-bank lender?
For flexibility on income or credit, such as a low doc loan when a bank says no.
Are non-bank lenders more expensive?
Sometimes, because they take on borrowers and deals banks avoid, but rates are often competitive.
Non-bank lender vs bank?
A bank holds deposits and an APRA licence; a non-bank lender funds elsewhere and is regulated by ASIC.