Target Market Determination

Small Amount Credit Contract (SACC)

This Target Market Determination (TMD) has been prepared by Fundo Loans Pty Ltd ACN 604 639 143, Australian Credit Licence 491418 ("Us, We, Our") to comply with our Design and Distribution Obligations under Part 7.8A of the Corporations Act 2001 (DDOs). It applies to:

Product

Small Amount Credit Contract (SACC)

Issuer

Fundo Loans Pty Ltd ACN 604 639 143, Australian Credit Licence 491418

Date of TMD

8 October 2024

Target Market

Description of target market

We have assessed that this product is likely to meet the likely objectives, financial situation and needs of consumers who:

  • require credit of $500 to $2,000 for personal purposes to pay for infrequent and sometimes unforeseeable expenses or purchases, the cost of which cannot be met from their regular or usual disposable income;
  • require quick access to the loan funds;
  • require a loan application and approval process which is easy, online and seamless;
  • do not require or do not want a long-term loan commitment or access to revolving credit;
  • can afford the repayments for the loan without hardship;
  • may experience difficulty in obtaining credit through mainstream credit providers, such as banks.

We have assessed that this product is likely to meet the likely objectives, financial situation and needs of a consumer within the target market because it satisfies all the above criteria

We consider that this product may not meet the likely objectives, financial situation and needs of a consumer who:

  • requires credit for the purpose of paying regular, ongoing ordinary household expenses such as utilities;
  • has had 3 or more SACC loans within a 6-month period;
  • applies for the product less than 1 month after the repayment of their previous SACC;
  • requires a longer-term loan or access to revolving credit; or
  • requires funds for business purposes.

Description of product, including key attributes

Attribute

Details

Minimum Loan Amount

$500

Maximum Loan Amount

$2,000

Minimum Term

5 weeks, 2 fortnights, 2 months

Maximum Term

26 weeks, 13 fortnights, 6 months

Interest Rate

N/A

Repayment Frequency

Weekly, fortnightly, monthly

Fees and Charges

Establishment fee of 20% of the amount financed.

Monthly fee of 4% of the amount financed.

Distribution Conditions

Distribution Channels

Distributor

Conditions and assessment

Direct distribution by Fundo

Fundo distributes the product directly to consumers via our website.

Applications are received electronically. The application form includes questions which seek to help us identify whether the applicant falls within the target market for the product. Financial data is verified via applicant-provided access to the applicant’s bank account statements. The verified data and application details are assessed against a defined set of credit assessment criteria. The following factors that are built into our application, assessment and approval process are designed to ensure that our product is distributed to customers within the target market:

  • The screening questions that are included in the loan application and which must be completed by the applicant for the application to progress.
  • The assessment and approval criteria programmed into our auto assessment system do not allow approval of applications that will place the consumer into financial hardship.
  • Our credit analysts who assess loan applications are highly trained professionals who are skilled in determining whether a consumer falls outside the target market parameters.

Where the application satisfies all criteria for approval and the application reveals no indications that the applicant is not within the target market for the product, the application is auto approved by our Loan Management System (LMS). Where the application fails to satisfy sufficient approval criteria, it is auto declined by LMS. Applications that do not meet the criteria for auto approval or auto decline are then passed to a team of highly trained credit analysts, who assess the application against the business’ credit criteria and policies and the product target market to enable them to provide an approval or decline decision.

We ensure that all material on our website is consistent with the product features and provides sufficient information about the product to enable consumers to make an informed decision about whether to apply for the product.

We have assessed that this distribution channel, including the conditions, is likely to direct distribution of the product to consumers within the target market because it provides rapid and straightforward access to the loan approval process, provision of loan funds to approved applicants without delay and an assessment and approval process that ensures that the loan repayments will not place the consumer in financial hardship.

Review Triggers

The occurrence of one or more of the following events will prompt us to review this TMD to ensure that the TMD remains appropriate:

  • There is a significant dealing in the product to consumers outside the target market;
  • We identify that the product has caused, or may be likely to cause, consumer harm;
  • A significant increase in complaints (taking into account the total funded loans) or a significant change in the nature of complaints relating to the design or distribution of the product in any calendar quarter.
  • A significant increase in hardship applications (taking into account the total funded loans) or a significant change in the nature of hardship applications relating to the design or distribution of the product in any calendar quarter.
  • Loan defaults in a calendar month exceed 7% of all loans written within that month, calculated based on a 6-month rolling average. For the purposes of this TMD, default is defined as principal repayments in arrears for greater than 90 days on a cash basis;
  • The value of the loans with defaults which become bad debts in a rolling 3-month period is more than 5% of our loan book by value;
  • The average number of loans per customer per year exceeds 3;
  • There is a material change to the product or the terms and conditions;
  • There is a material change in the law or Regulator expectations.

Review Periods

First review date: 30 June 2025

Periodic reviews:: The TMD will be reviewed annually, with the review completed by the anniversary date of the TMD.

Trigger reviews: Review of the TMD will commence within 10 days of the date we identify a trigger event.

Distribution Information Reporting Requirements

The following information must be provided to us by distributors who engage in retail product distribution conduct in relation to this product:

Type of information Description Reporting period
Complaints

Number of complaints

The details of a specific complaint

Every 3 months

Within 10 business days

Significant dealing/s

Date or date range of the significant dealing/s and description of the significant dealing (e.g. why it is not consistent with the TMD)

As soon as practicable, and within 10 business days after becoming aware

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See why our customers love us

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Fast, reliable, easy to use, reasonable. Helped me out with medical and vet bills. Been a life saver
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Very easy to apply and money was transferred within the hour
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Fundo loan example

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Borrow between
$500 to $5,000
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Flexible
payment terms
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No hidden fees
payout early for discount
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Money in ~60 secs of
contract acceptance¹

Small loan

Loan amount from $500 to $2,000
Minimum 5 weeks to maximum 6 months
20% establishment fee and a flat
4% monthly fee4

Example6
RepaymentsWeekly
Term20 weeks
Loan Amount$1,000
Establishment fee$200
Total monthly fee (over 20 weeks)$200
Total repayable$1,400
Weekly repayment$70.00

Medium loan

Loan amount from $2,001 to $5,000
Minimum 9 weeks to maximum 6 months
$400 establishment fee, interest at
47.80% p.a. (comparison rate 63.29% p.a.)5

Example6
RepaymentsFortnightly
Term6 months
Loan Amount$2,500
Establishment fee$400
Total interest (over 6 months)$389
Total repayable$3,289
Fortnightly repayment$253.09

4 Fees are based on loan principal advanced.

5 Comparison rate is based on an unsecured loan of $2,500 over a term of 6 months with a fortnightly repayment frequency.

WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

6 The example assumes timely repayment as per the loan agreement, or additional fees and charges may apply.

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Things you should know

Terms and conditions and fees and charges apply. Approval and loan amount are subject to our credit assessment criteria.

¹As soon as you sign your contract, we instantly send the funds to your nominated bank account. If your bank works with the New Payments Platform (NPP), most customers see funds in their account within 60 seconds. If your bank is not NPP enabled, or its a public holiday, the funds are usually received by the next business day

²Applying for a loan with Fundo usually takes about 5 minutes. However, this time can change based on a few things, such as your typing speed, the device you're using, and whether you have all the necessary information ready to go.

³As the approval process is influenced by various external factors, we can't guarantee that you'll receive a decision on the same day. However, most of our customers do receive a same-day response to their application with Fundo, if they submit their loan application and all the requested supporting information by 4pm Sydney time during a regular business day.

Fundo is an Australian direct lender that offers short-term, small loans without any legal jargon or red tape. Our online loans are designed to provide access to a broad range of qualified applicants, including those with less-than-perfect credit.

Finding small loans with flexible repayment terms is now a reality with Fundo - no need to keep searching for 'Debt Consolidation Loans Bad Credit', 'Personal Loan With Fast Approval', or '24 Hours Cash Loans'. Applying for Fundo loans in the future gets more engaging when you pay off your loans in advance penalty-free while also increasing your chances for approval.

Fundo believes that eligible applicants should be able to get closer to the loans they need. If you've been looking for small cash loans through search terms like 'Instant Approval Loans Need Cash Today', 'Payday Loans No Credit Check', or 'Savvy Loans', then you can stop looking now - let us show you how easy it is to apply for a loan with Fundo.

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