Responsible Lending Code

Loan Direct

Responsible Lending Code

Loan Direct takes its obligations as a Responsible Lender seriously and abides by the current legislation, namely “The Responsible Lending Code”. The Code can be viewed here: Responsible Lending Code (June 2017) [PDF, 304 KB]

About Loan Direct

Loan Direct is a Finance Broker,  but in certain circumstances will lend money through its parent company / owner – Loansmart Limited.

Your Finance Consultant will advise you if your loan is with Loan Direct or if it is being brokered to another company. If your loan is brokered to another company we will advise you of the fees, interest rate, and payments prior to your loan being drawn down. These rates and fees vary from Company to Company but currently start at 8.95%.

When you apply for a loan we have some responsibilities for you, these include that we understand your needs and your situation. This will allow you to make an informed decision about your loan and rest assured all information provided will be kept confidential. Depending on your circumstances the sort of information we may request from you is as follows:

  • Your personal circumstances including your age
  • What existing loans you have and whether they will be repaid with this loan
  • Recent bank statements to confirm your income and expenses
  • Whether your employment is full, part-time, or casual
  • What assets you have and their value
  • Details of your credit history and your consent to a Credit Check
  • Requesting to see your identity documents (drivers license/passport etc)

To understand your needs we may also ask the following:

  • The amount you would like to borrow
  • When you require the funds
  • The purpose of the loan
  • The loan term that best suits your needs/budget

It is very important to us that you understand your contract and we endeavor to do the following:

  • Make sure you know your rights and responsibilities before you sign the Contract
  • Have clear terms and conditions that are easy to understand
  • Ensure you understand the Interest Rate & Fees that apply to your Contract
  • Clearly specify any security being used and ensure you are aware of this
  • That you understand what may happen in the event of non-payment (repossession or sale of any property that you have provided as security)
  • Give you this information at the time you apply and have details on our Website.

If your loan is with Loan Direct the following will apply:

  • Interest rates start from 8.95% and are fixed for the term of the loan
  • An Establishment Fee will be charged on each new loan.
Our current Establishment Fees applied to new consumer loans are as follows:
$1,000 – $4,999 No more than $295
$5,000 – $9,999 No more than $395
$10,000 or greater No more than $495
  • An Administration Fee is charged to your account each month that your account has a balance.
  • The administration Fee will be no more than $3.50 per week.
  • If you loan falls into arrears you will be charged the following Default Fees
Loan arrears
If the Loan arrears are less than $500 $5 per week
If the loan arrears are more than $500 but less than $1,000 $10 per week
If the loan arrears are greater than $1,000 $15 per week

In addition to the above default fees you will be charged penalty interest on your overdue balance. Penalty interest is set at the interest rate on your contract plus 10%. Penalty Interest is charged to your account monthly.

Caveat Fee
Caveat Fee $460 maximum fee

Where a loan is secured by a Caveat/agreement to the mortgage we will register a Caveat over the property. Caveat registration costs will be charged on the Loan Agreement and release costs will be charged to the loan at settlement. The maximum amount charged will be $460 for each property.

Other websites that can assist you with borrowing money

What Happens If You Suffer Unforeseen Hardship?

If you are unable to keep up your payments on your loan because of illness, injury, loss of employment, the end of a relationship, or any other reasonable cause, you may be able to ask us to vary the terms of your Loan Agreement with us. To apply for a Variation, you need to do the following:

  1. Make an application in writing setting out the circumstances of your request.
  2. Make a request for one of the following:
    • An extension of the term of your Loan Agreement – this means we would reduce the amount due on each payment date and increase the number of payments; or
    • A postponement of certain payments.
    • Both of the above.
  3. Send the application to us. You may phone us to discuss on 0800 255 155 but we will ask you to follow up in writing by letter or email.

Please note you must do this as soon as possible. If you delay for too long in making an application or do not meet the criteria, we may not have to consider your request. If we agree to your requests, we may ask you to enter into a new agreement or we may change the terms of your existing Loan Agreement with us to help you meet your obligations.

Our Terms & Conditions

If your loan is with Loan Direct the following Terms and Conditions will apply

  1. To read the Privacy Act Acknowledgement and Authorisation, please click here
  2. To view our Terms & Conditions including a schedule of our fee’s and charges, please click on the following Loansmart Terms & Conditions
  3. To view our Loan Agreement please click on the following Loansmart Loan Agreement
  4. If you have any queries with regards to the above, please contact us on 0800 323 130 or email
  5. We do not offer Short Term loans, all Loan Direct loans are for terms of six to sixty months.
  6. Our current interest rates range from 8.95% APR (Annual Percentage Rate) to a maximum APR (Annual Percentage Rate) of 29.95%. The rate offered will depend upon your credit history, security offered and your overall credit profile, all rates are fixed for the term of the agreement.