Pepper Money Personal Loan Product Guide Effective July 2017
Pepper Money Personal Loan Product Specifications Acceptable Loan Purposes Unacceptable Loan Purposes Boat Caravan Debt consolidation Education Funeral Home furnishing Home improvement Household appliances Investment Medical expenses Motorcycle or scooter New or used motor vehicles Refinance (1 debt only) Tax debt Trailer Travel Vehicle expenses Wedding Debt consolidation of Pay Day lender debts Payout, rental, mortgage and credit arrears Payment of defaults and judgements Loans for business purposes Minimum Loan Size $5,000 Maximum Loan Size Minimum Loan Term Maximum Loan Term Acceptable Borrower Types Unacceptable Borrower Types $50,000 te: A reduced maximum loan amount may apply based on loan purpose and risk rating 1 year 7 years te: A shorter loan term may apply based on loan purpose and risk rating Individual applicants only, aged 18 years or older Australian citizens or permanent residents or hold a Visa that is acceptable to Pepper Money AND reside in Australia with an acceptable, locatable, fixed and verifiable address te: maximum age restrictions apply provided applicant can demonstrate the ability to repay the loan within the agreed contractual arrangements without hardship Applicants requiring guarantors Full-time students with no demonstrated or sustainable income outside of education allowances Undischarged bankrupts Unemployed applicants or home makers who have no demonstrated income apart from spousal payments or social security payments Applicants with > 2 financial defaults in last 12 months PRODUCT GUIDE 2
Product Features Unsecured Interest Rate Yes Dependent on risk profile Current range 9.99% pa to 21.49% Interest Rate Type Fixed Variable Break cost - more than 3 months prepayments in any calendar year (fixed rate loans only) Break cost - Full payout ahead of scheduled term (fixed rate loans only) Additional Repayments Accepted Repayment Holiday Available Ongoing Fees Account Statements Repayment facilities Partial Drawdown Loan Splits Redraw Debit Card $150 N/A $300 N/A Yes Yes 6 monthly statements are online at Issued beginning of July (Jan June) and beginning Jan (July Dec) BPAY Direct Debit Direct Credit PRODUCT GUIDE 3
Income Verification Requirements te: The provision of bank statements is mandatory for all applicants. If applicant (s) choose not to provide electronic access via bankstatements.com.au as part of the application process, they **must** provide the last 3 months bank statements relating to personal bank accounts. Copies of internet banking account records are acceptable provided these show applicants name, bank account number, running and total balances. Acceptable Income - PAYG If income cannot satisfactorily be confirmed from review of the bank statements, the following will be required: Employment Type Income Definition Allowance Verification Full, Permanent Part-Time, Casual, 2nd Job, Contract Overtime Commission Base salary, allowances and shift penalties Applicant states received continuously for 12 months AND 3 continuous months of overtime payments can be validated < 50% of total income is from commission AND can be validated from the most recent 3 months payslips te: If commission is > 50% of income, assess as selfemployed 50% Salary / Wages: The last 2 computerised payslips or electronic slips that: Show gross and net year to date income Identify the applicant and employer s name Casual Employment: The last 2 computerised payslips or electronic slips that: Show gross and net year to date income Identify the applicant and employer s name AND The most recent group certificate Fully Maintained Company Car Maximum of $5,000 can be added to the Gross Taxable Income Up to $5,000 Car Allowance Allowed provided it is a permanent part of income Acceptable Income - Self-Employed Employment Type Income Definition Verification Self-Employed Profit distributions / dividends from the business Consulting or other fees paid to the borrower by the business Directors / Sole Trader salary or wages Interest received on shareholder loans Acceptable add backs: Up to depreciation (if deemed suitable) Any other business expense deemed to be non-recurring Business: In addition to bank statements: Tax Returns and Tax Assessment tice for the most recently completed financial year te: Independent verification of taxation documents provided will need to be made of applicant s Accountant or Tax Agent Contractor: In addition to bank statements: Copy of Contract (if just commencing assignment) and dated no more than one month old with a term of at least 12 months OR Last 2 years Financial Statements prepared and signed by a registered tax agent or an accountant who is registered with the CPA, CAA or NIA. Same documents as required for Full time salaried/ PAYG but should confirm 3 months of salary credits. te: Any income calculations to arrive at an annualised basis should be based on 48 working weeks PRODUCT GUIDE 4
Acceptable Income - Other Sources Employment Type Income Definition Allowance Verification Rental Income Gross rents received 80% If rental income cannot be confirmed from bank statements: The last rental statement received from the managing agent for properties already tenanted Investment Income (Interest, dividends) To be demonstrated over a 2 year period Superannuation Ongoing pension or annuity Child Maintenance Family Payments Social Security Pension and/or Government Pension Can only be accepted as supplementary income in conjunction with another acceptable income source Subject to validation from Court Order or Child Support Agency documents Payments will need ot be available for the term of the loan and will need to be confirmed from last 3 months bank statements te: The sum of any child maintenance and family payments received must not exceed 50% of total income Payments received for dependent children with no age restrictions subject to validation from Centrelink statements no more than 1 month old Payments should be available for the term of the loan te: The sum of any family payments and child maintenence income should not exceed 50% of total income Payments received should be available for the term of the loan If payment is received from Centrelink, documentary evidence is required te: Special serviceability provisions apply to this income type te: If unable to confirm from bank statements, this income will need to be confirmed from tax returns. Self-employed verification requirements apply Last 3 months bank statements Centrelink statements no more than 1 month old If payment is received from Centrelink, documentary evidence is required PRODUCT GUIDE 5
FAQs I m already accredited with Pepper Money, can I submit a Personal Loan Application? We ve established some online product training for our new Personal Loan products, which you can complete in as little as 20 minutes. Once you ve completed your online training, we ll provide your access details via email, allowing you to submit a Personal Loan application within 24 hours.to complete our Personal Loan product training, log in at /broker. Where can I gain more information about Pepper Money s Personal Loan products, rates & fees? If accredited, you will find all the Personal Loan information you need, once logged in via www.pepper. com.au/broker. Pepper Money will also ensure our Personal Loan product information is made available to your Aggregator. How do I lodge a personal Loan application with Pepper Money? It s pretty simple really. Pepper Money has invested considerable time and money building an online platform to ensure the Application process is intuitive and simple. The system is designed for you to provide your Customer an online link, where your Customer completes the data input and validation. Even where the data input is completed by the Customer, we ll capture your details to ensure you are paid any commission due upon us funding the personal loan. To lodge a Personal Loan application now, visit: www. pepper.com.au/broker. How long will it take for Pepper Money to disburse funds? Applications can be approved and funded within 24 hours (where all requirements satisfied). What technology innovation has Pepper Money introduced to speed up the application and funding process? Identification is completed by the Customer online using Jumio 1. Bank Statement data is provided using bankstatements.com.au 2. Loan Terms can be agreed online, and documents executed using Docusign 3. Any supporting documents can be scanned and uploaded or emailed to Pepper Money. What is the key difference with Pepper Money s approach to assessing applications? Pepper Money undertakes an individual assessment on each Personal Loan application, and applies pricing based on the risk of the loan. How do I track the progress of a personal loan application? Pepper Money will send you milestone emails at each stage, ensuring you are aware as each key milestone is reached. Who do I contact at Pepper Money for assistance with my application? Whether you have a loan scenario to discuss, or have an enquiry about an existing application, please contact Pepper Money on 1300 659 430. How will the personal loan be disbursed? Pepper Money will disburse funds electronically using the banking details provided in the application. Do we email Customer at any stage? Once the application has been settled the customer will receive two emails. The first being a welcome communication and this followed by an email that will provide the link to the customer s personal loan dashboard. Once disbursed, who can the Customer contact if any enquiries arise regarding their new Pepper Money Personal Loan? Pepper Money will write to the Customer shortly after the Personal Loan has been funded. We will provide the Customer with relevant contact information and access to their loan online. Pepper Money s Customer Service Centre is available on 13 73 77. When will my upfront commission be paid? Upfront commission payments will be paid weekly. 1. Jumio makes the identification process simple for the customer. Jumio s ID verification technology, Netverify, provides real-time ID verification. Enabling the customer to use the camera on their device to scan their ID document. It also compares the customer s live image to the scanned ID with Jumio Face Match. 2. bankstatements.com.au enables the customer to send their bank transaction data to Pepper Money almost instantly! more need for customers to find their bank statements and scan or fax them to Pepper Money. This means we can get loans approved so much quicker! 3 Docusign is the most reliable and globally trusted service for electronic signatures and approvals and provides a full digital audit trail for compliance and legal enforceability. For further information, please visit www.docusign.com.au PRODUCT GUIDE 6
Sales Support call 1300 659 430 visit pepper.com.au/broker For more information about Personal Loans, including accreditation, contact your Pepper Money BDM. DISCLAIMER: This product guide is accurate as at the effective date of this document. Pepper reserves the right to alter the policies at any time without notice. We will notify borrowers of changes in accordance with their loan agreement and the National Consumer Credit Protection Act. CONFIDENTIAL: This Product Guide is a reference guide for intermediaries accredited to distribute Pepper Money products and is not intended as an advertisement to the public. It is made available on a strictly confidential basis and must not be reproduced in whole or part, or distributed to any person or organisation without Pepper s prior written consent. It must not be made available to the public under any circumstances. Whilst every effort has been made to ensure this Product Guide is accurate, it should not be relied upon for any purpose or used as a substitute for independent professional advice. WARNING: You must comply with all legal requirements. n-compliance with the law may attract civil and/or criminal penalties. PRODUCT GUIDE 7
PO Box 6186 rth Sydney NSW 2060 call 1800 737 737 visit pepper.com.au/broker Pepper Group Limited, Australian Credit Licence Number 286655 is the servicer of loans made by Pepper Finance Corporation Ltd ACN 094 317 647.