All Topics / Finance / Regulated Loan
Hi,
Dumb question here.
What is the difference between a regulated and non regulated loan?
Is a “regulated loan” regulated by the consumer credit act, etc?
If so what about a non-regulated loan.
Thanks in advance.
Hi Intrinsic,
Yes a regulated loan is “regulated” by the UCCC, (Uniform Consumer Credit Code). Unregulated refers to loans for Business or Investment purposes.
There is a certain level of protection available to consumers under the UCCC, for regulated loans. If you are borrowing for business or investment purposes, it is assumed that you know what you are doing, so you get less protection. There are some loans that are availale only as regulated (eg most 100% LVR loans) and some that are only available as unregulated (eg self employed low doc at 65%LVR)
You have to sign a declaration when getting an unreg loan saying that it is primarily (50% or more) for bus/inv purpose, waving your rights under the UCCC.Pete
Thanks for that Pete.
Cheers
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