The Risk Assurance Charge (RAC) is an amount paid to the Provision Fund to protect our investors, who are ordinary Australians like you, from loss. Provision Fund protection means that RateSetter lenders are often prepared to fund loans at market leading interest rates. The RAC is not revenue for RateSetter – it is held by the Provision Fund for the benefit of our lenders to help protect them from loss.

The RAC for your loan is calculated based on the loan amount, loan term, and your credit characteristics. For consumer borrowers, this includes your credit score. You can find an estimate of your Risk Assurance Charge by requesting a RateEstimate - it only takes 1 minute, and won't affect your credit score.

The RAC is capitalised to your loan amount, and is repaid from your monthly loan payments over the term of your loan.

The RAC is not insurance for borrowers. It is held for the benefit of our lenders to help protect them from loss.

Common questions about the RAC