Vield Loans

Responsible Lending: Why We Need to Collect Customer's Income and Household Expenses Information

Sam Teoh
October 26, 2023
min read

At Vield, we offer crypto-backed loans using Bitcoin and Ethereum as collateral, offering up to 50% of the collateral's value for Australian dollars. While the nature of our collateral may seem unconventional, our commitment to responsible lending practices remains strict. One of the critical steps in our loan approval process is collecting detailed information about our customers' income and household expenses, including the latest three months of bank statements.

Here's why this is essential:

Ensuring Serviceability and Financial Stability

  1. Assessing Repayment Capacity

    Collecting information about your income and household expenses helps us accurately assess your ability to meet loan repayments. This assessment is vital to ensure that you can comfortably manage the loan without compromising your financial stability. By understanding your income sources and regular expenditures, we can make an informed decision about your loan application.
  2. Preventing Financial Hardship

    Our goal is to prevent you from entering into a loan agreement that could lead to financial hardship. By reviewing your income and expenses, we can identify any potential red flags that might indicate that the loan repayments would be unsustainable. This proactive approach helps protect you from overcommitting and facing undue financial stress.

Compliance with Regulatory Obligations

  1. Adhering to Responsible Lending Guidelines

    As an authorised credit representative, we are required to comply with the National Consumer Credit Protection Act 2009 and the guidelines set out by the Australian Securities and Investments Commission (ASIC). According to ASIC’s Regulatory Guide 209, we must make reasonable inquiries about your financial situation to ensure that the loan product is suitable for you. This includes verifying your income and understanding your regular expenses.
  2. Mitigating Risks of Unsuitable Lending

    Responsible lending obligations are designed to minimise the risk of consumers entering into unsuitable credit contracts. By collecting comprehensive financial information, we ensure that the credit provided does not lead to increased debt levels or financial distress. This aligns with our commitment to prudent and ethical lending practices.

Enhancing Transparency and Trust

  1. Building a Trustworthy Relationship

    Transparency is the core foundation of a trustworthy lender-borrower relationship. By being transparent about the need for your financial information, we aim to build trust and ensure you are fully aware of your financial commitments. This openness helps you make informed decisions about borrowing and managing your finances.
  2. Customised Loan Solutions

    Understanding your financial situation allows us to offer loan solutions tailored to your specific needs and circumstances. This personalised approach ensures that the loan terms are appropriate and manageable for you, enhancing your overall borrowing experience.

Collecting detailed information about your income and household expenses is not just a regulatory requirement; it is a fundamental aspect of responsible lending. At Vield, we are committed to ensuring that our loan products are suitable for your financial situation, helping you achieve your financial goals without compromising your financial well-being. Your trust and financial health are our top priorities, and we believe that responsible lending is the key to maintaining both.

For more information about our crypto-backed loans and responsible lending practices, visit or contact our customer support team.

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