Personal Loan Terms and Conditions

Version 1, dated June 2016.

These are the Pepper Personal Loan Terms & Conditions version 1 incorporated into loan contracts referring to these terms and conditions.  They form part of your loan contract. 

This document does not contain all the pre-contractual information required to be given to you.  You must read this document together with your loan contract. 

Words printed like this have a special meaning – see your loan contract and this document.

If there is any conflict between your loan contract and this document, the terms of your loan contract prevail.  If there is any conflict between any provisions of any security or guarantee and this document and the loan contract, the terms of this document and the loan contract prevail.

1. Making the loan 
1.1  By signing this loan contract, you agree to borrow the amount of credit on the terms specified in this document.  This loan contract becomes binding on you when we advance the amount of credit to you.

1.2  We reserve the right to withdraw from this transaction if you do not comply with any of the conditions of our offer.  We also reserve the right to withdraw if this offer is not accepted within 14 days from the disclosure date, or if anything occurs which in our opinion makes settlement undesirable.

1.3  The amount you owe us means the total amount outstanding from time to time in respect of each account including all accrued interest, fees and charges including where applicable those that accrue on partial or total repayment.

1.4  A business day is a day that is not a Saturday or Sunday, or a New South Wales, or Commonwealth public holiday on which banks are generally not open to conduct business in New South Wales.

2. What happens if there are two or more borrowers?
2.1  If there are two or more of you, each of you is individually liable, and all of you are jointly liable.  This means the Lender may sue any one of you for all the outstanding amounts. 

Each Borrower can bind each other Borrower.  Each Borrower and any Guarantor will be liable even though they did not know about or did not agree to the transaction.

WARNING. This means that each one of you can be required to pay the whole amount even though you may have some other arrangement among yourselves and even though not all of you benefit equally.

2.2  Despite this clause, we may require all borrowers and guarantors to authorise any activity with respect to your loan.

3. Repayments
3.1  You must make all payments by the due date.  In addition to making any repayments specified in the financial table, on the date your loan ends, you must pay to us the amount you owe us.  Repayments will be credited when they are actually received by us, and will be applied to your loan as determined by us.  All payments must be made in full, without any deduction, set-off or counterclaim.

3.2  If you have more than one account with us and you make a payment without telling us how the payment is to be applied, we can apply it to any one or more of your accounts.

3.3  If you have more than one account with us and one of those accounts is in arrears, we can apply funds from one account to cover the amount in arrears in the other account.

3.4  Repayments are to be made as directed by us.  Usually, this will be by direct debit from your nominated bank account.  You must sign any forms required by us and do anything required by us to effect repayments.

3.5  You must provide us with a valid and enforceable direct debit authority to debit the monthly repayments from an account approved by us as they fall due, or such other frequency as agreed to by us from time to time.  You instruct us and authorise us to debit any amounts payable by you (including interest and credit fees and charges) as they become due.  You must ensure that the account always has sufficient funds to meet your repayment obligations.  If you fail to have sufficient funds in your account, payment may be dishonoured and a fee may apply.  You must not cancel the direct debit authority or close the account without making alternate arrangements and without our consent.

3.6  If any repayment is due:

(a)  on a day which is not a business day, or

(b)  on a day which is the 29th, 30th or 31st of a month with no such date, 

the payment must be made on or before the next business day by direct debit or in such other manner as agreed with us. 

However, if that means that the payment is due in the next calendar month, your payment is due on the last business day of the current calendar month.

3.7  If any direct debit used for repayment is dishonoured, the repayment will be treated as not having been made, and interest will continue to accrue on the unpaid daily balance until actual payment is received by us.

3.8  You may with our approval elect to have a repayment holiday for a maximum of three months in any 12 month period.  If you take a repayment holiday, your repayments will be increased in order to repay your loan within the loan term.

4. Early repayment
4.1  You can repay your loan in full at any time before the loan term ends.  If you have a fixed rate loan and you repay your loan in full before the end of the fixed rate account’s term, you must pay us an early repayment fee.

4.2  If you repay part of your loan early, your obligation to make the repayments by the dates specified remains unchanged, unless we agree otherwise.

4.3  If you have a fixed rate loan and you make early repayments in any calendar year during the fixed rate account’s term which exceed an amount equal to three months’ repayments or more, you must also pay us a break fee. The break fee is a fee payable to compensate us for costs incurred as a result of the fixed rate account being partially repaid early.  For example, break fees may arise because when a lender agrees to lend money to a customer for a fixed period at a fixed rate, the lender itself borrows money on similar terms.  If the fixed rate loan is repaid early before the due date for payment, the lender may still be obliged to pay the agreed rate for the same period to its own lender.

4.4  We may not pay interest on excess funds received by us (ie if you repay too much).

5. Interest charges 
5.1  Interest on your loan accrues daily, starting on the loan date based on the outstanding debit balance of your loan, including any unpaid fees and charges.  The interest rate applied each day is equal to the annual percentage rate applicable to the loan at the time divided by 365. 

5.2  Interest will be debited to your loan account monthly in arrears on the same day each month as the loan date.  If any day on which interest is due to be debited is not a business day, interest will be debited on that day.  If any interest is to be debited on a day which is the 29th, 30th or 31st of a month with no such date, then the debit will be made on the last day of the month.

5.3  Interest debited to your loan will be added to the outstanding balance of your loan and accrue interest at the same rate and in the same manner as the principal of your loan.

5.4  In addition to debiting interest to your account monthly, we may debit interest whenever the loan is in default, there is any repayment of the loan, there is any principal increase or variation in your loan contract, or any change to the loan terms. Default interest is calculated and debited in the same way.

6. Fees and charges
6.1  You must pay any fees and charges which become payable under the loan contract.

6.2  If the fee or charge is payable to us, you authorise us to debit your loan for the relevant amount.

6.3  If the fee or charge is for someone else (eg an insurer), you authorise us to debit your loan with that amount and pay it to the relevant third party.

7. Redraw 
7.1  We will tell you if redraw facilities are available.

7.2  We may review, suspend or cancel the redraw facility at any time.  Redraws will be processed as we decide from time to time.

7.3  If redraw facilities are available and you have made extra payments above your minimum repayment amount, you may redraw all or any part of those extra payments provided:

(a)  you have not defaulted under your loan contract;

(b)  the interest rate applying to the account to which the extra payments were made is a variable interest rate; and

(c)  no other redraw restrictions are set out in your loan contract.

7.4  The amount you redraw must not be less than the minimum amount specified by us from time to time. 

8. Default
8.1  If any one or more of the following occur we may decide that default has occurred.

(a)  There is default of any term or condition of this loan contract.

(b)  There is default under any security given to secure payment under this loan contract.

(c)  Any representation made by you in relation to this loan was untrue or misleading.

(d)  You breach any material undertaking given at any time to us.

(e)  You become bankrupt or are jailed.

8.2  At any time after default occurs, we can take any of the following actions after giving any notice required by law.

(a)  Demand and require immediate payment of any money due under this loan contract.

(b)  Call up the loan and require payment of the amount you owe us.

(c)  Terminate this loan contract.

We can take action even if we do not do so promptly after the default occurs.

8.3  Enforcement expenses may become payable under the loan contract if you default.  You must pay the enforcement expenses on demand and we may debit your account with them.  Enforcement expenses include our costs in connection with any exercise or non-exercise of rights arising from any default, including:

(a)  legal costs and expenses on a full indemnity basis or solicitor and own client basis, whichever is higher;

(b)  our internal costs.

These costs will not exceed our reasonable enforcement expenses including internal costs.

The costs include our costs in preserving or maintaining any secured property (if applicable, including insurance, rates and taxes payable of any security), collection expenses and expenses resulting from dishonour of a cheque or payment.  These expenses may be debited to your loan at a time after they are incurred.

8.4  You indemnify us from and against any expense, loss, loss of profit, damage or liability which we incur as a result of default incurring.

9. Default rate
9.1  Acting reasonably, we may change the default rate at any time without your consent.

9.2  If any amount due by you, including any fees and charges, is not paid on the due date, you must pay default interest on the amount in default until it is paid.  You may also be liable for default fees.  If for any reason your entire loan amount becomes due, interest at the applicable default rate is payable on the entire amount.

9.3  If you default at any time, we may elect not to charge default interest or fees at that time.  However, we reserve the right to charge default interest and fees at a later time, including retrospectively for any period during which you were in default.

10. Changes
10.1  Acting reasonably, we may change any term of this contract at any time without your consent including:

(a)  changing the annual percentage rate (except during any fixed rate term);

(b)  changing the amount or time for repayments;

(c)  changing the amount or frequency of payment of any fee or charge;

(d)  imposing a new fee or charge; and

(e)  changing the method of calculating or debiting interest.

10.2  We will give you notice of any change in accordance with any requirement of the National Credit Code or any other code or law which may apply.  For example, we will give:

(a)  notice of an increase in the annual percentage rate by writing to you or by advertisement in a newspaper circulating throughout your jurisdiction no later than the day on which the increase is to take effect;

(b)  at least 20 days written notice if we increase your repayments; or

(c)  at least 30 days written notice of any change in the manner in which interest is calculated or the frequency with which it is debited or the imposition of a new fee or charge.

11. Access methods
11.1  We may make one or more of the following access methods available from time to time:

(a)  direct deposit into your nominated back account; or

(b)  telephone access;

(c)  internet access;

(d)  BPAY into your nominated back account; or

(e)  Electronic Funds Transfer into your nominated back account.

11.2  We are not liable for:

(a)  any failure, error, or delay making funds available to an access method;

(b)  any third party delay in making funds available to you;

(c)  ATM limits (if applicable), or any other third party limitations;

(d)  loss, theft, or any unauthorised access of any access method; or

(e)  fees imposed by third parties in relation to use off access methods.

12. General matters
12.1  You must pay us on request any government duties, taxes and other charges on receipts, duties of withdrawals that apply to your loan.  We may debit these duties, taxes and charges to your loan as and when they become payable.

12.2  You must promptly produce documents or other evidence we require to enable us to verify your identity or other information about you.

12.3  You must tell us promptly if your mobile number, residential, postal or email address, or any other personal information changes.

12.4  There may be some statutes (ie laws passed by parliament) or other law (usually called common law) intended to limit our rights.  None of those statutes or laws will operate to limit out rights under this loan contract unless by law those rights cannot be negated.  In particular, we need not give any notice before exercising any right, power (including power of sale) or remedy under this loan contract unless required by law.  If the law does require notice, we need only give one day’s notice or the shortest notice required by that law.

If the law does require us to give you notice before exercising rights, we may not have to give notice if:

(a)  we cannot locate you after making reasonable attempts to do so; or

(b)  you are insolvent; or

(c)  we are authorised by a court.

12.5  If any of the provisions of this loan contract are illegal or become illegal at any time, the affected provisions will cease to have effect, but the balance of the loan contract will remain in full force and effect.

12.6  A certificate signed by or on behalf of us as to an amount payable to us is conclusive and binding on you.

12.7  Statements of account will be forwarded to you at least once every six months or more frequently if requested by you or as required by law.  Statements may not be sent when the interest rate is fixed.

12.8  We may, without your consent and without notice to you, assign, novate or otherwise deal with our rights and obligations under this loan contract in any way we wish.  We may disclose personal and credit information about you in connection with any such dealing.  You must sign anything and do anything we reasonably require to enable any dealing with this loan contract.  Of course, any dealing with our rights does not change your obligations under this loan contract in any way.  You cannot assign or otherwise deal with your rights or obligations under this loan contract.

12.9  Any communications, originating process, court document or other document to be given or served under or in connection with this loan contract or any security associated with this loan contract may be:

(a)  delivered personally to you;

(b)  posted to or left at your residential or business address last known to us;

(c)  posted to or left at the address shown in your loan contract;

(d)  sent by email to your email address last known to us or;

(e)  given in any other way permitted by law.

The notice may be signed by any employee, solicitor, or agent on our behalf. 

12.10   This loan contract is governed by and interpreted in accordance with the law for the time being in force in the place shown as your address in this loan contract.

12.11  References to a person include a reference to companies and trusts and any other kind of body.  Singular words include plural words and vice versa.

The following statement is prescribed by law.  Not all of the information in this statement may apply to you.



This statement tells you about some of the rights and obligations of yourself and your credit provider.

It does not state the terms and conditions of your contract.

If you have any concerns about your contract, contact the credit provider and, if you still have concerns, your credit provider’s external dispute resolution scheme, or get legal advice.


1. How can I get details of my proposed credit contract?
Your credit provider must give you a precontractual statement containing certain information about your contract.  The precontractual statement, and this document, must be given to you before-

  • your contract is entered into; or
  • you make an offer to enter into the contract,

whichever happens first.

2.  How can I get a copy of the final contract?
If the contract document is to be signed by you and returned to your credit provider, you must be given a copy to keep.

Also, the credit provider must give you a copy of the final contract within 14 days after it is made.  This rule does not, however, apply, if the credit provider has previously given you a copy of the contract document to keep.

If you want another copy of your contract write to your credit provider and ask for one.  Your credit provider may charge you a fee.  Your credit provider has to give you a copy -

  • within 14 days of your written request if the original contract came into existence 1 year or less before your request; or
  • otherwise within 30 days of your written request.

3. Can I terminate the contract? 
Yes.  You can terminate the contract by writing to the credit provider so long as –

  • you have not obtained any credit under the contract; or
  • a card or other means of obtaining credit given to you by your credit provider has not been used to acquire goods or services for which credit is to be provided under the contract.

However, you will still have to pay any fees or charges incurred before you terminated the contract.

4. Can I pay my credit contract out early?
Yes. Pay your credit provider the amount required to pay out your credit contract on the day you wish to end your contract.

5. How can I find out the pay out figure?
You can write to your credit provider at any time and ask for a statement of the pay out figure as at any date you specify.  You can also ask for details of how the amount is made up.

Your credit provider must give you the statement within 7 days after you give your request to the credit provider.  You may be charged a fee for the statement.

6. Will I pay less interest if I pay out my contract early?
Yes.  The interest you can be charged depends on the actual time money is owing. However, you may have to pay an early termination charge (if your contract permits your credit provider to charge one) and other fees.

7.  Can my contract be changed by my credit provider?
Yes, but only if your contract says so.

8.  Will I be told in advance if my credit provider is going to make a change in the contract?
That depends on the type of change.  For example-

  • you get at least same day notice for a change to an annual percentage rate.  That notice may be a written notice to you or a notice published in a newspaper.
  • you get 20 days advance written notice for-
    a change in the way in which interest is calculated;
    • a change in credit fees and charges; or
    • any other changes by your credit provider;

except where the change reduces what you have to pay or the change happens automatically under the contract.

9. Is there anything I can do if I think that my contract is unjust?
Yes.  You should first talk to your credit provider.  Discuss the matter and see if you can come to some arrangement.  If that is not successful, you may contact your credit provider’s external dispute resolution scheme. External dispute resolution is a free service established to provide you with an independent mechanism to resolve specific complaints. Your credit provider’s external dispute resolution provider is the Credit and Investment Ombudsman Ltd and can be contacted on 1800 138 422 or 02 9273 8400, by fax at 02 9273 8440, by email at INFO@CIO.ORG.AU or in writing to PO Box A252 SYDNEY SOUTH NSW 1235.

Alternatively, you can go to court. You may wish to get legal advice, for example from your community legal centre or Legal Aid.

You can also contact ASIC, the regulator, for information on 1300 300 630 or through ASIC’s website at


10.  Do I have to take out insurance?
Your credit provider can insist you take out or pay the cost of types of insurance specifically allowed by law.  These are compulsory third party personal injury insurance, mortgage indemnity insurance or insurance over property covered by any mortgage.  Otherwise, you can decide if you want to take out insurance or not.  If you take out insurance, the credit provider cannot insist that you use any particular insurance company.

11.  Will I get details of my insurance cover?
Yes, if you have taken out insurance over mortgaged property or consumer credit insurance and the premium is financed by your credit provider.  In that case the insurer must give you a copy of the policy within 14 days after the insurer has accepted the insurance proposal.

Also, if you acquire an interest in any such insurance policy which is taken out by your credit provider then, within 14 days of that happening, your credit provider must ensure you have a written notice of the particulars of that insurance.

You can always ask the insurer for details of your insurance contract.  If you ask in writing your insurer must give you a statement containing all the provisions of the contract.

12.  If the insurer does not accept my proposal, will I be told?
Yes, if the insurance was to be financed by the credit contract.  The insurer will inform you if the proposal is rejected.

13.  In that case, what happens to the premiums?
Your credit provider must give you a refund or credit unless the insurance is to be arranged with another insurer.

14. What happens if my credit contract ends before any insurance contract over mortgaged property?
You can end the insurance contract and get a proportionate rebate of any premium from the insurer.


15.  If my contract says I have to give a mortgage, what does this mean?
A mortgage means that you give your credit provider certain rights over any property you mortgage.  If you default under your contract, you can lose that property and you might still owe money to the credit provider.

16. Should I get a copy of my mortgage?
Yes.  It can be part of your credit contract or, if it is a separate document, you will be given a copy of the mortgage within 14 days after your mortgage is entered into.

However, you need not be given a copy if the credit provider has previously given you a copy of the mortgage document to keep.

17. Is there anything that I am not allowed to do with the property I have mortgaged?
The law says you cannot assign or dispose of the property unless you have your credit provider’s, or the court’s, permission.  You must also look after the property.  Read the mortgage document as well.  It will usually have other terms and conditions about what you can or cannot do with the property.

18. What can I do if I find that I cannot afford my repayments and there is a mortgage over property?
See the answers to questions 22 and 23. 

Otherwise you may-

  • if the mortgaged property is goods - give the property back to your credit provider, together with a letter saying you want the credit provider to sell the property for you;
  • sell the property, but only if your credit provider gives permission first; OR

give the property to someone who may then take over the repayments - but only if your credit provider gives permission first.

If your credit provider won’t give permission, you can contact their external dispute resolution scheme for help.

If you have a guarantor, talk to the guarantor who may be able to help you.

You should understand that you may owe money to your credit provider even after the mortgaged property is sold.

19. Can my credit provider take or sell the mortgaged property?
Yes, if you have not carried out all of your obligations under your contract.

20. If my credit provider writes asking me where the mortgaged goods are, do I have to say where they are?
Yes.  You have 7 days after receiving your credit provider’s request to tell your credit provider.  If you do not have the goods you must give your credit provider all the information you have so they can be traced.

21. When can my credit provider or its agent come into a residence to take possession of mortgaged goods?
Your credit provider can only do so if it has the court’s approval or the written consent of the occupier which is given after the occupier is informed in writing of the relevant section in the National Credit Code.


22. What do I do if I cannot make a repayment?
Get in touch with your credit provider immediately.  Discuss the matter and see if you can come to some arrangement.  You can ask your credit provider to change your contract in a number of ways:

  • to extend the term of your contract and reduce payments; or
  • to extend the term of your contract and delay payments for a set time; or

to delay payments for a set time.

23. What if my credit provider and I cannot agree on a suitable arrangement?
If the credit provider refuses your request to change the repayments, you can ask the credit provider to review this decision if you think it is wrong.

If the credit provider still refuses your request you can complain to the external dispute resolution scheme that your credit provider belongs to. Further details about this scheme are set out below in question 25.  

24. Can my credit provider take action against me?
Yes, if you are in default under your contract.  But the law says that you cannot be unduly harassed or threatened for repayments.  If you think you are being unduly harassed or threatened, contact the credit provider’s external dispute resolution scheme or ASIC, or get legal advice.

25. Do I have any other rights and obligations?
Yes.  The law will give you other rights and obligations.  You should also READ YOUR CONTRACT carefully.