Government Lending Restrictions
Recent law changes impact the way in which we assess loan applications.
Of particular significance to SMARTCASH and its customers, are the new rules relating to “high-cost loans.” These are loans that have an annualised interest rate of 50% or more. These rules only apply to our loans which are between $200 and $1000 for a term of 63 to 186 days.
In summary;
- Interest and fees that can be charged on a high-cost loan is limited to twice the amount first advanced
- The daily rate of charge (which includes interest and fees but excludes default fees) is limited to 0.8%
- Lenders can no longer lend to a borrower who, at the time that they apply for a high-cost loan,:
- owe money on another high-cost loan; or
- owed money on a high-cost loan within the last 15 days; or
- has entered into 2 or more high-cost loans within the last 90 days.
The new laws also impose obligations on lenders to make detailed enquiries about the suitability and affordability of anyone who applies for a loan. Such enquiries must be made each time that a person applies for a loan and includes obtaining bank statements, confirming employment details, a detailed examination of expenses, credit checking and (if relevant) making enquiries of other lenders from whom you have recently borrowed.
As a result, you will be seeing changes in the way SMARTCASH will be assessing loan applications. This will affect both existing and new customers.
If you have any questions, please do not hesitate to contact us on 0800 222 465 or email us at: admin@smartcash.co.nz – the SMARTCASH team will be happy to assist you in understanding what these new rules mean for you.
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What a loan from SMARTCASH costs you
At SMARTCASH we offer short-term loans online from $100 to $300. We arrange repayment of your loan to coincide with your paydays.
Our daily interest rate is 0.134%. This amounts to an Annual Percentage Rate (APR) of 49%, though you never pay that as these loans are only for a maximum of 31 days. We charge a $55 establishment fee and a $5 fee for each payment processed. For other fees (if applicable), see What it costs.
When you borrow from us, you must repay your loan within the number of your pay periods that you select. If, for any reason, you are having difficulty making your repayments it is important that you contact us as soon as possible to discuss further arrangements for your loan.
If we do not hear from you and you do not repay your loan on the agreed terms, you will be charged a default fee. You will continue to be charged interest of 0.134% per day on the outstanding principal sum and fees, from after the loan expiry date until the loan is repaid in full. See our Terms and Conditions.
To help protect your good credit record it is very important that you repay our loan in full. Keeping a good credit history makes it easier for you in the future to borrow money from all lenders or purchase goods from retailers on lease or hire purchase.