diff --git a/modeling/inference_models/hf_torch.py b/modeling/inference_models/hf_torch.py
index d4d5320b..c46195ba 100644
--- a/modeling/inference_models/hf_torch.py
+++ b/modeling/inference_models/hf_torch.py
@@ -215,7 +215,15 @@ class HFTorchInferenceModel(HFInferenceModel):
         # PEFT Loading. This MUST be done after all save_pretrained calls are
         # finished on the main model.
         if utils.args.peft:
-            peft_local_path = os.path.join("models/peft", utils.args.peft.replace("/", "_"))
+            local_peft_dir = os.path.join(m_self.get_local_model_path(), "peft")
+
+            # Make PEFT dir if it doesn't exist
+            try:
+                os.makedirs(local_peft_dir)
+            except FileExistsError:
+                pass
+
+            peft_local_path = os.path.join(local_peft_dir, utils.args.peft.replace("/", "_"))
             logger.debug(f"Loading PEFT '{utils.args.peft}', possible local path is '{peft_local_path}'.")
 
             peft_installed_locally = True
diff --git a/models/peft/README.txt b/models/peft/README.txt
deleted file mode 100644
index fc7b72c4..00000000
--- a/models/peft/README.txt
+++ /dev/null
@@ -1,2 +0,0 @@
-PEFT models will be stored in this directory when downloaded.
-Please don't be too mean to this directory.