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

Distribution Conditions

Distribution Channels

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.

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