How Does Ezilend.com.au Work?

Ezilend.com.au operates as a loan brokerage service, essentially acting as an intermediary between individuals and businesses seeking finance and a network of various lenders. Their core function is to simplify and expedite the process of obtaining an interest-based loan. Understanding this mechanism is crucial for anyone considering their services, especially from an ethical standpoint where the involvement of interest (riba) is a significant concern.

The process, as described on their website, generally follows these steps:

1. Initial Enquiry and Pre-Approval

The first step for a potential borrower is to submit an initial enquiry, often through an online form on the Ezilend website.

• Online Application Form: This form gathers basic personal and financial information, details about the loan amount required, and the purpose of the loan (e.g., car, caravan, equipment, personal). The website encourages users to “Apply now for personalised service and fast pre-approval.”
• Soft Credit Check: A key selling point here is the claim of “no impact on Credit Score” for this initial pre-approval stage. This typically means Ezilend performs a “soft credit check.” A soft check gives them an indication of your creditworthiness without leaving a mark on your credit file that other lenders can see. This contrasts with a “hard credit check,” which occurs when you formally apply for a loan and can temporarily lower your credit score.
• Preliminary Assessment: Based on the information provided and the soft credit check, Ezilend’s system or a broker performs a preliminary assessment to determine potential eligibility and suitable loan products from their network.

2. Personalised Service and Lender Matching

Once the initial enquiry is processed, Ezilend aims to provide a more personalised service through their finance brokers.

• Broker Contact: A dedicated finance broker from Ezilend likely contacts the applicant. This “real people” interaction is highlighted on their website as a key advantage, aiming to make the process “personal” and “stress-free.”
• Information Gathering: The broker will likely gather more detailed financial information, including income, expenses, existing debts, and potentially supporting documents. This step is crucial for the full credit assessment required by lenders.
• Lender Network Utilisation: The broker then uses their expertise and access to Ezilend’s “large network of lenders” to find loan options that best fit the applicant’s profile and needs. This involves comparing rates and terms from various financial institutions within their network.

3. Loan Offer and Documentation

If a suitable lender and loan product are identified, an offer is extended to the applicant.

• Loan Offer Presentation: The broker presents the loan offers, outlining the interest rates, repayment terms, fees, and any specific conditions. This is where the “comparison rate” comes into play, although the website’s calculator disclaimer (“All interest rates displayed ‘are guides ONLY’”) means the actual offer might differ.
• Electronic Signing: Ezilend offers “remote electronic signing available on your mobile,” which significantly speeds up the documentation process, allowing applicants to sign legally binding documents digitally without needing to visit an office.
• Acceptance and Final Checks: Upon acceptance of the offer, the selected lender will conduct a full credit assessment (a hard credit check) and final verification of documents. This is the point where the loan is formally approved or rejected based on the lender’s stringent criteria.

4. Settlement and Disbursement

The final stage involves the formalisation of the loan and the disbursement of funds.

• Settlement: Once all conditions are met and documents are verified, the loan undergoes settlement. This means the legal formalities are completed.
• Fund Disbursement: The loan amount is then disbursed to the applicant or directly to the vendor (e.g., car dealership) as per the loan agreement.
• Repayment Schedule: The borrower then commences repayments according to the agreed-upon schedule, which includes the principal amount plus the accrued interest.

The Ethical Problem in the Process

The entire process, from initial enquiry to fund disbursement, is predicated on the concept of interest-based lending. This is where the fundamental conflict arises for those adhering to ethical financial principles. Each step is designed to facilitate a transaction that involves riba. skinphysics.com.au Reddit Discussions – What Real Users Think

• Intermediation of Interest: Ezilend’s role as a broker is to connect borrowers to lenders who charge interest. Even though Ezilend itself might not be the direct lender, it is actively facilitating a transaction that is ethically problematic.
• Normalisation of Debt: The ease and speed of the process can normalise taking on debt, even for depreciating assets, without sufficient emphasis on the long-term implications of interest and financial servitude.
• Comparison Rates: While comparison rates are a regulatory requirement in Australia to help consumers understand the true cost of a loan (including most fees and charges), they still represent an interest calculation, which is the core ethical concern.

Therefore, while Ezilend.com.au works efficiently to connect borrowers with interest-based loans, its operational model remains incompatible with ethical financial guidelines that prohibit riba. For those seeking genuinely ethical financial solutions, this model is inherently problematic.