Vield Personal Loan
This Target Market Determination (TMD) has been prepared in accordance with the Pt 7.8A of the Corporations Act (Cth) 2001 and its related regulations and regulatory guidance. TMDs are designed to assist:
- issuers to ensure that the financial products they design and issue are likely to be consistent with the objectives, financial situation and needs of the consumers for whom they are intended (the Target Market);
- issuers and distributors to ensure that they take reasonable steps to ensure that the financial products are distributed to the Target Market; and
- issuers to monitor consumer outcomes and review products to ensure that consumers are receiving financial products that are likely to be consistent with their likely objectives, financial situation and needs.
General Disclaimer
This TMD is general in nature and should not be construed as financial advice. Consumers should obtain independent advice prior to acquiring the product to ensure that it is appropriate for their specific objectives, financial situation and needs.
LSL Alternative Credit Pty Ltd (ABN 55 641 811 181), Australian Credit Licence No. 526970.
Vield Capital Pty Ltd (ABN 38 672 205 113) a credit representative of the Issuer, with credit representative number 553950
Target Market
The Product is designed for consumers who:
Key terms and attributes of
the Product that make it appropriate to the Target Market
(a) Meet the following eligibility criteria:
(i) are 18 years old or older;
(ii) are employed on a full-time, part-time, or casual basis; and
(iii) are a permanent resident or citizen of Australia.
Eligibility the loan will not be suitable for
consumers who do not meet this eligibility
criteria. Accordingly, The Distributor will only offer
the loan to consumers who meet the eligibility
criteria.
(b) Are seeking one or multiple small to
medium value secured loans, for a short,
fixed term
Loan Amount a loan amount of at least $2000
and up to $250,000.
Term a fixed 12-month period.
Multiple Loans a customer may request multiple loans, limited to 3.
Maximum Loan Amount customers will be
limited to a maximum loan amount of 50% of the
total Security Assets they provide as security for
each loan.
(c) Are seeking a secured loan for personal
or domestic use
Intended Use customers are required to
acknowledge and agree that the loan is intended
to be used for personal and domestic use.
Security customers will be required to provide
liquid virtual assets (see below) as security for
the loan.
(d) Hold highly liquid virtual assets and are
willing to use these assets as security for
the loan.
Security Assets customers must have highly
liquid virtual assets (i.e. ETH, BTC or USDC) and
transfer those assets in a wallet held by the
Distributor. These assets will be used as security
for the loan.
(e) Require certainty on their repayments
and interest, with limited flexibility on
early repayments;
Fixed Interest Rate customers will agree to a
fixed interest rate of 13% for the term of the loan.
Other Fees may be payable on the occurrence of certain events (e.g. events of default)
Repayments customers will make regular,
scheduled repayments to pay down the loan
balance over the term.
Early Repayments customers are able to make
early repayments, but must agree to paying the
early-repayment fee as stipulated in Loan
Contract.
No Redraws customers are not able to access
any extra repayments that have been made to
the loan in excess of their scheduled repayments.
(f) are able to complete online applications
and use mobile software applications;
and
Online process applying and managing this loan will be online and through mobile application.
(g) can demonstrate the ability to repay the
loan
Affordability and suitability assessment The Distributor’s online and mobile application form will require the consumer to provide information. The Distributor will assess this information against its affordability and suitability criteria to ensure that the loan is suitable for the consumer’s needs and objectives and that the consumer can repay the loan.
Distribution Conditions and Restrictions
The following conditions and restrictions to the distribution of Vield Personal Loans will apply so that the product is likely to be provided to customers in the Target Market.
These conditions and restrictions:
- limit the channels through which the product can be provided;
- ensure the Distributor is adequately trained, monitored and accredited; and
- ensure the product is distributed in accordance with a consistent process.
Appropriateness of distribution
The Product will be distributed by the
Distributor, direct to the customer,
through the following channels:
- the Distributor’s mobile applications (both Android and iPhone);
- The Distributor's web application and website;
- through requests received from the Distributor’s website.
- referral arrangements and strategic partnerships between the Distributor and third-party businesses
It has been assessed and
considered appropriate for the Distributor to be the exclusive distributor of the Product. Accordingly, limiting the distribution
channel to one distributor, will ensure that:
- marketing is directed at customers who fit within the Target Market;
- processes are in place to ensure that products are only distributed to customers who fit within the Target Market; and
- the Product is suitable for a relatively narrow Target Market;
- The required information is collected from customers to assess whether customers are in the Target Market;
- training, monitoring and controls will be simple to implement.
While the Distributor will promote the product through third parties through referral arrangements and strategic partnerships, the Distributor will be the only channel for customers to acquire the Product.
Training,
monitoring and
accreditation
The Product will only be provided to customers by exclusively through the
Distributor who will:
- effect and maintain the relevant licenses;
- be trained by the Issuer; and
- have its distribution activities reviewed and monitored by the Issuer.
Training, monitoring and
accreditation standards will ensure the Distributor:
- will undergo background checks on key personnel;
- complies with all relevant law relating to distribution of the Product; and
- Adopt distribution practices in accordance with the Issuer’s own policies and standards.
This will ultimately enable the Distributor to assess customer requests and determine whether they are in the Target Market.
The Product will only be distributed through the Distributor’s channels
mentioned above. These channels will require the Distributor to collect all
necessary information to determine whether a customer fits within the
definition of the Target Market.
The Distributor will collect
information from customers who apply for the Product to ensure they are in the Target Market. This includes:
- Information for the Distributor’s affordability and suitability assessment to ensure customers meet the affordability requirement;
- Information relating to the intended purpose and use of the Product to ensure customers’ needs and objectives are likely to be met;
- Assessing the information collected to ensure customers’ are likely to meet their financial obligations.
Periodic Reviews
Initial Review
12 months after the TMD Date
Periodic Reviews
18 months from the date of the previous review.
Review Triggers
The following events are review triggers that would reasonably suggest that the TMD is no longer appropriate:
- A significant dealing of the product to consumers outside the Target Market occurs.
- A significant number of complaints are received from consumers in relation to the product.
- There is a material change to the product or the terms and conditions.
- There is a material number of:
- hard ship applications;
- overdue loans;
- forced loan close-outs; and/or
- defaults; and - There are significant changes to Australian Credit Laws that affect this product.
Reporting
The following information must be provided to the Issuer by the Distributor:
Details of the complaint,
including the name and
contact details of the
complainant and the
substance of the complaint
As soon as practicable, and in any event within 10 business days of receipt of the complaint
Every 3 months
This will ultimately enable the Distributor to assess customer requests and determine whether they are in the Target Market.
Date or date range of the
significant dealing(s) and a
description of the significant
dealing.
As soon as practicable, and in any event within 10 business days after becoming aware of the significant dealing
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