Target Market Determination

3.  Class of consumers that comprises the Target Market

The 12-Months Product is designed exclusively for consumers who meet our Eligibility Criteria and who wish to defer payment of their upfront Property-related Costs over a period of 12 months (Target Market). No foreseeable monetization event is required for a consumer to obtain the 12-Months Product.

3.1.  CLASS OF CONSUMERS WITHIN THE TARGET MARKET

The 12-Months Product is for the class of consumers who:

• falls within the definition of Australian Property Owner (see above) and require short-term lending solutions to pay Sale Costs;

• are seeking finance with flexible payment options, no initial fees and no interest for the term of the loan⌃, the ability to make early repayments without additional charges, and a maximum amount of funding capped at the amount of the Sale Costs;

• are receiving product or services and incurring Sale Costs through our 12-Months Partners;

• meets Elepay’s Eligibility Criteria (set out below);

• are not currently experiencing financial hardship;

• are able to make a single lump sum payment for the loan amount (via the funds received from the monetization event) without causing financial hardship.

3.2.  EXCLUDED CLASS OF CONSUMERS

The 12-Months Product is not suitable for consumers who:

• do not fall within the definition of Australian Property Owner;

• are not receiving products or services and incurring Property-related Costs through our 12-Months Partners; 

• do not otherwise meet Elepay’s Eligibility Criteria;

• are going through bankruptcy or are experiencing, or are likely to, suffer from financial hardship;

• are considered vulnerable persons (e.g. suffering from any form of cognitive impairment);

• require an ongoing line of credit;

• require a redraw facility;

• are not comfortable with providing security over their real property.

⌃ Default interest and other fees apply, see below.

3.3.  ELIGIBILITY CRITERIA 

To be eligible for the 12-Months Product, a consumer must satisfy the following requirements:

• be an individual aged 18 years or above; 

• fall within the definition of Australian Property Owner (see above);

• meet Elepay’s standard lending criteria including: 

  • conducting a credit check on the consumer; 

  • conducting an identity verification check on the consumer; 

  • conducting an ownership check (including title search of the property); 

  • conducting an online property valuation report (for the property);

• satisfy the following credit assessment criteria, which will be conducted by Elepay’s Finance Specialist Team:

  • Property Equity Analysis, which is a credit assessment based on the net equity-debt risk analysis of the consumer’s property;  

  • Income Serviceability Analysis, which is a credit assessment based on the consumer’s household net income and which ensures that the consumer has the financial capability to make the required repayments without experiencing financial hardship. The consumer must satisfy Elepay’s internal serviceability assessment calculator. The consumer will be required to: 

    • complete an income serviceability form outlining their net household income and expenses; 

    • provide supporting documentation for any claimed source(s) of income (e.g. 2 recent pay slips); and 

    • disclose any existing (or anticipated) circumstance or event which may affect their ability to make the required repayments;

• be incurring Property-related Costs through our approved 12-Months Partners of a minimum amount of $100.00.

3.4.  OTHER KEY PRODUCT ATTRIBUTES

Some key attributes of the 12-Months Product include: 

• Structure – the 12-Months Product is structured so that:

  • Elepay enters into a loan with the Consumer with a loan term of 12 months, under which Elepay disburses funds directly to the 12-Months Partner for payment of Property-related Costs incurred by the consumer (from the Partner);

  • the consumer has in total 12 months from the Elepay Start Date to repay the loan (in full);

• Purpose of loan - the 12-Months Partner must be providing products or services to the Consumer and the loan must be for the payment of the Partner’s Property-related Costs (whether partial or in full); 

• Repayment – the consumer must repay the loan by way of twelve (12) equal instalments payable every 30 days (in arrears), though early repayment is possible without penalty (see below);

• Partner’s goods or services – the Partner has an obligation under its Partner Agreement with Elepay to supply goods and services to the consumer with reasonable care and skill and in accordance with the supply terms between the Partner and the consumer;

• Fee Structure – the Fee structure for the 12-Months Product is as follows:

  • No Plan Fee and no Interest for the term of the loan – the Consumer is not required to pay any plan fee or interest for the provision of credit (default interest and other fees apply, see below);

  • No Establishment or Administration fee – the Consumer is not required to pay any establishment or administration fee for the provision of credit;

  • Capped Processing Fee – the Consumer is required to pay a capped processing fee of $125.00 per annum, which is spread equally across the twelve instalments; 

  • Partner Fee – the Partner is required to pay a partner fee of up to 7.95% of the consumer’s total loan amount. This fee is payable under a separate agreement between Elepay and the Partner;

  • Default/Late fee – the consumer will be liable to pay a late interest of 0.0695% per day compounding daily (of the outstanding amount) and a late fee of 0.25% every 30 days (of the outstanding amount) if the consumer has not repaid an amount owing by the scheduled repayment date. This is subject to any claim the consumer may have for financial assistance.

  • Other fees – other fees may apply such as a missed payment fee ranging from $15.00 to $25.00 (depending on the nominated method of payment) and title registration fee ranging from $350 to $1,100 (depending on whether a registered security is provided with respect to the consumer’s property);

• Minimum Credit Limit – the minimum amount of funding provided is $100.00;

• Maximum Credit Limit – subject to an individual credit and lending assessment for a particular consumer, the amount of funding provided is capped at the Property-related Costs agreed between the consumer and the 12-Months Partner;

• Early repayments – Consumers have the ability to make an early repayment of the loan without any additional charge or exit fee;

• Security – the consumer will be required to provide a charge over the consumer’s real property (which may or may not be registered against title to the property).