Jacaranda Line Of Credit Target Market Determination

Target Market Determination

This Target Market Determination (TMD) is prepared by the Product issuer: Jacaranda Finance Pty Ltd (Jacaranda), ABN 53 162 078 195, Australian Credit Licence number 456 404 (Us, We, Our). This TMD applies to the Line of Credit product.

What is a Target Market Determination?

We’re required to have TMDs under law. The purpose of the law is to make sure customers are at the centre of our approach when designing and distributing our financial products.

This TMD is designed to offer consumers, distributors and staff an understanding of the class of consumers for which this product has been designed, and is likely to be consistent with the likely objectives, financial situation and needs of the consumers for whom they are intended (the target market).

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 particular objectives, financial situation and needs.

Target Market

Our Target Market is a consumer with the following objectives, financial situation and needs:

The table above matches the Product Attributes to the Objectives and Needs of the Target Market for this Product.

Financial Situation

The Jacaranda Line Of Credit is designed for individuals 19 years and above who are a permanent resident or citizen of Australia with a fixed address and have the following objectives, needs and financial situation:

• receive 49% or less of their income from Centrelink;
• receive regular and consistent income into a personal bank account;
• need a loan amount between $1,000 and $2,000;
• meet Jacaranda’s credit assessment criteria which includes demonstrating the capacity to make the required repayments on the credit facility without substantial hardship.

Jacaranda’s Line Of Credit product is unlikely to be suitable for the following Consumers:

• who are solely reliant on Centrelink benefits;
• want to deal with a lender in person or via a branch;
• who are unable to demonstrate income being deposited into their personal bank account;
• are not an existing Jacaranda customer;
• have been bankrupt in the past 3 years; and
• do not meet Jacaranda’s credit assessment criteria which includes demonstrating the capacity to make the required repayments on the credit facility without substantial hardship.

Jacaranda has assessed that the Product including its Key Attributes are likely to be consistent with the Objectives, Financial Situation and Needs of the Target Market.

Distribution Conditions

As an online lender, Jacaranda distributes its Loan products through both direct (e.g. Jacaranda website) and indirect channels (e.g. referral sites and brokers).

All Distribution channels present the product appropriate to consumers as follows:

• Our website contains information to assist a person evaluate the suitability of our product to their needs before applying, including:
  • no misleading or deceptive conduct;
  • no unsolicited offers of credit;
  • all disclosures required by law;
  • Information about the products such as rates and fees, in an easy to navigate format.
• All third party referrers are:
  • vetted before being allowed to present our product;
  • provided the appropriate resources to understand Jacaranda’s application processes, customer eligibility criteria and regulatory requirements;
  • subject to regular monitoring;
  • required to enter into referral agreements with us.

In all forms of distribution, Jacaranda asks screening questions as part of an application to ensure that a prospective borrower is within the target market set out above. All our products are distributed in compliance with our responsible lending obligations.

Reporting by our Distributors

The following information must be provided to us by distributors who engage in retail product distribution conduct in relation to this product:

Review Triggers

If any of the below review triggers occur, or if an event or circumstance has occurred that would reasonably suggest that the TMD may no longer be appropriate, Jacaranda will undertake a review of this TMD:

The complaints manager will collect, assess and review all the above data every three (3) months. If any of the above Trigger Events occur, this will trigger a review as if it were a Periodic Review as below.

Scheduled Periodic Reviews

We will conduct periodic reviews of this TMD annually. Our responsible manager will conduct all Design and Distribution Obligation (DDO) reviews and report the results of the review to our board of directors. The report must be provided to the board within two weeks of conducting a review.

Contact Us

For enquiries and information about this TMD, please contact us at hello@jacarandafinance.com.au.