Credit contract - General terms for personal loans

The meaning of key words, including ‘we’ and ‘you’, is explained in the section ‘Key words explained’.

Contents

How we may exercise our rights and discretions
First steps
Giving us instructions
How we provide your personal loan
Operating your personal loan
Your general payment obligations
Fees and charges and other amounts
Interest charges
Repayments for personal loans
Early repayment of personal loans
Redraw
Interest rates
Review
Defaults
Changes we can make
NAB Personal Loan Cover insurance
Co-operation 
Statements 
Banking Code of Practice
Assignment 
Payments and effective dating 
Contacting each other 
Severance
Restriction on set off, combination or counterclaim by you
Our rights for set off, combination and counterclaim
Our right to debit other accounts 
Applicable law
Unacceptable account conduct
Key words explained

How we may exercise our rights and discretions

1.1 When we exercise a right or discretion under these terms and conditions we'll do it in a way that is fair and reasonable. This includes when we make changes to terms of this agreement or fees and charges. 

1.2 Some things we might consider when exercising our rights and discretions include:

(a) our legal obligations, industry codes and payment scheme rules and the expectations of our regulators;

(b) protecting our customers, staff and systems and the personal information we hold;

(c) whether any information you provided us is misleading, incorrect or incomplete, or you haven't provided us with information we reasonably need when asked;

(d) how our products and services are intended to be used (and how you have used them) and whether there has been any unacceptable account conduct (which is explained later in these terms and conditions);

(e) our public statements, including those relating to protecting vulnerable persons, the environment or sustainability;

(f) community expectations and any adverse impact on our reputation;

(g) whether we need to take any action to protect you or another person from a potential fraud or scam;

(h) risk management, including sanctions risk management.

1.3 We can exercise our rights:

(a) when we choose (e.g. if we don’t exercise them fully or at a certain time, we can exercise them later);

(b) even if it involves a conflict of duty or we have a personal interest in their exercise.

1.4 Any person we authorise as our representative may exercise them (including any of our employees).

1.5 We’re not responsible for any loss arising in connection with us exercising (or not exercising) our rights except to the extent caused by fraud, negligence or misconduct of us, our related entities, our contractors or our agents.

First steps

2.1 We only have to provide your personal loan if:

(a) we reasonably believe that there has been no change to your financial situation that affects your ability to repay your loan since applying for it and that no such change is likely;

(b) we have received any document or information we reasonably require;

(c) you’re not in default under this contract (for example, you have paid all relevant fees and interest charges and haven’t given us any misleading financial or other information); and

(d) you have complied with all of our other reasonable requirements.

2.2 If there’s more than one of you:

(a) we’ll treat this contract as accepted when each of you have notified us in a manner reasonably acceptable to us that you have accepted it;

(b) the acceptance date will be the date of the last acceptance; and

(c) each of you may accept this contract separately, and each acceptance will be taken to form part of the one contract binding all of you.

2.3 You mustn’t use any part of your personal loan for business purposes. This loan is intended for your personal purposes.

Giving us instructions

3.1 Subject to the section ‘Redraw’ and 3.2, if there’s more than one of you, each of you authorises any one of you to give us instructions in relation to this contract, including any changes to this contract. These instructions will bind all of you.

3.2 We will not act on instructions from one of you where any of you tells us that any or all of you are in dispute with each other. In these circumstances, we will ask all of you to confirm the relevant instructions.

3.3 If you and we agree that loan funds will be used to finance NAB Personal Loan Cover insurance premiums, you are taken to have authorised us to debit the amount of the premiums to your loan account. For more information about how this affects your repayments, see the section ‘NAB Personal Loan Cover insurance’.

How we provide your personal loan

4.1 Your personal loan must be borrowed in full at the one time, and this must be done within 90 days of the offer date, unless we agree otherwise. If you don’t accept the contract within 90 days of the offer date and you still want a personal loan you will need to reapply. 

4.2 However, we may subsequently use loan funds under this contract to finance NAB Personal Loan Cover insurance premiums if you and we agree. See the section ‘NAB Personal Loan Cover insurance’.

4.3 If you have told us that you will use some or all of the proceeds of your personal loan to repay a debt or credit facility with another credit provider:

(a) we will pay the loan funds into an account nominated by you; and

(b) you must promptly transfer those funds to pay off the other debt or credit facility and must promptly close that other debt or credit facility if you advised us that you will do so.

4.4 The conditions in the section ‘First Steps’ must be met before we lend you all, or any part, of your personal loan.

Operating your personal loan

5.1 We’ll make your personal loan available through a loan account.

(a) Your personal loan is made available to you through a loan account established by us.

(b) If your account is in credit, we will take reasonable steps to return any amount in the account to you (unless we reasonably believe that we are unable to because of our regulatory or other legal obligations, for example, to comply with a court order). If you have not operated your account for seven years (or such other period of time specified in Australian legislation dealing with unclaimed moneys) (for example, by making repayments or redrawing funds), the account may be closed and any credit balance you have in the account will be transferred to the Commonwealth Government as unclaimed money. We will notify you at your last known address at least 30 days before this takes effect.

5.2 Which amounts are drawn from the loan account

(a) Any amounts payable in connection with the loan account (other than your principal and interest repayments) will be automatically debited to the loan account.

(b) We will also debit to the loan account any NAB Personal Loan Cover insurance premium that you have asked us to pay in accordance with the section ‘NAB Personal Loan Cover insurance’.

Your general payment obligations

6 You must:

(a) repay all amounts you borrow from us and pay us interest charges, fees and other amounts under this contract;

(b) pay the total owing under this contract on or before the last day of the loan term; and

(c) pay amounts due under this contract in a manner acceptable to us.

Fees and charges and other amounts

7.1 Amounts to be paid

You must pay us:

(a) all fees and charges, including any government charges and duties calculated in accordance with the relevant legislation, in the circumstances described in your letter of offer and any changed or new fee or charge notified to you;

(b) if we’re liable to pay GST or any similar tax on a supply (as defined in relevant legislation) (”the supply”) made in connection with this contract, an additional amount equal to the consideration payable for the supply multiplied by the prevailing GST rate; and

(c) when asked by us, any reasonable expenses we reasonably incur in enforcing this contract or a security after you’re in default (including all expenses reasonably incurred in preserving and maintaining a security property).

7.2 Debiting fees and charges

We may debit these amounts on or after the date we pay them or the date they become due or payable by you or us (whichever is earlier). We’ll endeavour (where reasonable and practicable) to notify you before we debit enforcement expenses to a facility account.

7.3 Changes to fees and charges

Subject to any representations we have made to the contrary and the section ‘How we may exercise our rights and discretions’, we may change the amount, type of fees and charges and when they’re payable (including by imposing new fees and charges or changing the method of their calculation). We’ll give you advance notice if we make these changes. See the section ‘Contacting each other’ for information about how we may give notice. Some changes in government fees and charges are publicised by the government and not by us.

Interest charges

8.1 You are required to pay us interest charges for each day on the balance owing on the loan account for the end of that day. Interest charges are calculated daily at the interest rate applying to the account for that day on the basis of a 365 day year (including in a leap year).

8.2 The interest charges for an account accrue daily from the settlement date and are debited on:

(a) the last banking day of each month; and

(b) on the day when the total owing is finally paid.

Repayments for personal loans

9.1 The amount of each repayment payable is stated in your letter of offer.

9.2 You may ask us to change the frequency of your repayments.

9.3 We may:

(a) change the amount of the repayments for the loan account in line with changes to the interest rate for that loan account, changes to fees or charges or otherwise as necessary to ensure that the total owing is repaid within the loan term;

(b) on or about each anniversary of the settlement date for a loan account (or the end of any longer period we choose), review the amount of any repayment for that loan account if it’s calculated using a variable interest rate.

We may also change the amount of your repayments to cover the cost of any annual NAB Personal Loan Cover insurance premium where you and we have agreed that loan funds will be used to finance the premiums. See the section ‘NAB Personal Loan Cover insurance’.

9.4 We’ll notify you before making any change to a repayment amount unless we’re not required by law or an industry code to give you this notice. See the section ‘Contacting each other’ about how we may give you notice.

9.5 Repayments must be made in the following way.

(a) You must make repayments for a loan account at the frequency stated in your letter of offer.

(b) Your first repayment for a loan account is due as described in the letter of offer.

(c) All following repayments for the loan account are then due:

(i) for monthly repayments, on the same date in each following month as the first repayment. If a particular month does not have that date, you must make your repayment on the last day of that month;

(ii) for fortnightly repayments, on the same day in each following fortnight as the first repayment; and

(iii) for weekly repayments, on the same day in each following week as the first repayment.

Early repayment of personal loans

10.1 You may repay early all or any part of the personal loan at any time.

10.2 If you repay early only part of the loan account, your repayment does not change unless we agree otherwise.

10.3 If you choose to prepay the total owing at any time before the end of the loan term, (so that your loan account has either a zero or credit balance) we may close your loan account and if we do this, this contract is ended. 

10.4 We will usually close your account within one banking day of the account having a zero or credit balance. We may not provide notice, even if you have a redraw right. 

10.5 The total owing on your loan account is subject to change. You can check with us to see if a prepayment will pay out and close your loan account.

Redraw

11 WARNING: If there is more than one of you, any one of you can redraw from your personal loan. You must specifically advise us if you wish to cancel this redraw option or if you wish only to redraw on the joint instructions of all of you. All of you are then required to authorise redraw before we can agree to your request. You can notify us at any time that you cancel the authority.

11.1 Your right to redraw

Unless the redraw right has been cancelled or suspended (see below), you have an automatic right to redraw amounts in respect of the loan account subject to: 

(a) there being an amount to redraw which is determined in accordance with this section ‘Redraw’ and the clause(s) under the heading ‘Amount you can redraw’; and

(b) the conditions in this section ‘Redraw’ and the clause(s) under the heading ‘Redraw conditions’.

Otherwise redraw is at our discretion. Any amount you redraw becomes part of the amount of credit

11.2 Amount you can redraw

You may only redraw if the expected amount outstanding for the loan account on a day is more than the balance owing on the loan account on that day (excluding any uncleared funds which have been credited to the loan account), and this difference between amounts is called the excess amount.

If you are permitted to redraw, the maximum you will be able to redraw is calculated as the excess amount less one contracted repayment amount.

11.3 Redraw conditions

You may redraw only if:

(a) the loan account has a variable interest rate;

(b) the redraw option has not been cancelled or suspended by us under this section ‘Redraw’ and the clause(s) under the heading ‘Cancelling or suspending redraw’ or by any one of you (unless the option has subsequently been re-activated);

(c) the redraw amount is at least a minimum amount which we determine from time to time; and

(d) your request for a redraw has been made in accordance with our standard procedures.

11.4 When you must not request a redraw

You must not request (and you will not have an automatic right to) a redraw if:

(a) the redraw amount is to be used for business purposes; or

(b) you’re aware of anything which could adversely affect your ability to repay the personal loan as a result of the redraw; or

(c) you’re in default of your payment obligations under this contract.

11.5 Cancelling or suspending redraw

You may cancel this automatic right to redraw at any time by notifying us to that effect. See the section ‘Contacting each other’ about how to give us notice.

We may cancel or suspend this automatic right to redraw at any time where you are in default under this contract or any other facilities that we have provided to you and where relevant you have not remedied the default within any remedy period we have given you.

Subject to the section ‘How we may exercise our rights and discretions’, we may also cancel or suspend this automatic right to redraw at any other time (taking into account any commitments we have made to you about the availability of redraw), including where:

(a) we are notified that one or more of the account holders is deceased (however if you are a joint account holder, please contact us if you need to access funds);

(b) it is reasonably necessary to prevent an anticipated breach of the law of Australia or of any other country; 

(c) it is reasonably necessary to prevent potentially fraudulent activity or a scam or unacceptable account conduct;

(d) we reasonably believe it is in your best interests to protect your account;

(e) it is reasonably necessary to manage any risk; or 

(f) it is reasonably necessary to prevent an anticipated material loss to you or us arising from the misuse or unauthorised use of the account or our banking services.

When we cancel or suspend an automatic right to redraw we may do so without prior notice to you but will give you notice after we do so and if appropriate we will give you a general reason for doing so. We may exercise our rights above for as long as is reasonably necessary to manage any risks. See the section ‘Contacting each other’ for how we may give you notice.

11.6 Redraw at our discretion

If there is an amount to redraw (determined in accordance with the section ‘Amount you can redraw’) but you do not satisfy all the conditions set out in the section ‘Redraw conditions’, you may request a redraw at our discretion.

Interest rates

12 Our indicator rates (used to calculate your interest rate under this contract) are published daily on our website, and may also be published from time to time in the press. You may also obtain information about our indicator rates by contacting us.

12.1 A variable interest rate applies to the loan account unless it has a fixed interest rate.

12.2 If a loan account has a variable interest rate, we may change the amount of that interest rate at any time under the section ‘Changes we can make’. The variable interest rate stated in your letter of offer is the rate applying at the offer date and is only a guide – the actual rate which applies to a loan account may be different.

12.3 We’ll generally give you notice on or before the date of any change in the variable interest rate. However, we may decide not to give you notice of this if it is not required by law or an industry code. See the section ‘Contacting each other’ about how we may give you notice.

Review

13 We may conduct a review of the operation of your loan accounts and your financial position. The review may be conducted at any time. As a result of a review and subject to the section ‘How we may exercise our rights and discretions’, we may vary this contract, including by changing your principal and interest repayments under this contract to ensure that the total owing is repaid within the loan term.

We’ll notify you before making any such change unless we are not required by law or an industry code to give you this notice. See the section ‘Contacting each other’ about how we may give you notice.

Defaults

14.1 When are you in default?

You’re in default if:

(a) you do not pay on time any amount due under this contract;

(b) you breach any material provision of this contract or other agreement you have with us and that breach can’t be remedied, or isn’t remedied, within 30 days of notice requiring you to do so;

(c) you, or someone you have authorised us to get information from about you, gives us information which we reasonably believe to be incorrect or misleading in connection with this contract;

(d) you or another person does not carry out in full an undertaking given in connection with this contract, within the period specified, or promptly if no period is specified;

(e) you are or become insolvent or steps are commenced to make you insolvent; or

(f) we reasonably believe you or another relevant person has acted fraudulently in connection with this contract or another agreement you have with us.

14.2 What can happen when you are in default

(a) If you’re in default, we may give you a notice stating that you’re in default. If you do not correct the default within any grace period given in the notice or required by law (or if you’re in default again for a similar reason at the end of that period), then, at the end of that period and without further notice to you, the total owing under this contract becomes immediately due for payment (to the extent it is not already due for payment).

(b) We may then sue you for that amount.

(c) In limited circumstances set down by law (such as if we’re unable to locate you), we need not give the notice or wait until the end of any grace period given in a notice. Instead, if you’re in default, the total owing under this contract becomes immediately due for payment without notice (if it is not already due for payment). We may then immediately sue you for that.

(d) Your obligation to pay on time is not cancelled by this clause.

Changes we can make

15.1 In addition to other changes we may make (as set out in this contract), we may, subject to any representations we have made:

(a) change the interest rate by:

(i) changing the relevant indicator rate from time to time in accordance with our normal practices for that indicator rate; or

(ii) substituting a different indicator rate; or

(iii) changing any applicable margins;

(b) change the amount, frequency or time for payment of the credit fees and charges payable by you (including government charges);

(c) change the amount, frequency or time for payment of repayments;

(d) change the method by which interest is calculated or the frequency with which it is charged;

(e) impose a new fee or charge;

(f) change the frequency with which you’re entitled to receive statements of account under this contract; or

(g) change any of the other provisions of this contract.

15.2 We’ll exercise our rights in this section ‘Changes we can make’ fairly and reasonably and may act in accordance with our business needs. We’ll tell you of any unilateral change to this contract made by us. How we give you notice is set out in the section ‘Contacting each other’. We’ll do this no later than the day the change takes effect.

15.3 Where we’re not required by law to give you prior notice of a change, we may elect not to do so.

15.4 As the Banking Code of Practice applies to this contract:

(a) apart from the changes to interest rates (see 12.3) or changes to repayments (see 9.3 and 9.4), if we believe any other change is unfavourable to you, then we will give you prior notice of at least 30 days subject to (b).

(b) we may give you a shorter notice period, or no notice, of an unfavourable change if that is in accordance with the law and applicable industry codes and if:

(i) it is reasonable for us to manage a material and immediate risk; or

(ii) there is a new or varied government charge in connection with this contract. In that case, we will tell you about the introduction or change reasonably promptly after the government notifies us. However, we do not have to tell you about the change or introduction if the government publicises it.

15.5 As the National Credit Code applies to this contract, we’ll only vary this contract in accordance with that Code and this clause 15. See also the section ‘Giving us instructions’.

15.6 We may agree with you and if there’s more than one of you, any one of you, to change this contract or to defer or waive any of these terms and conditions without creating a new contract and the change will bind all of you.

NAB Personal Loan Cover insurance

16 NAB Personal Loan Cover is consumer credit insurance. At your request we will arrange any NAB Personal Loan Cover insurance specified in your letter of offer or as otherwise agreed to by us, including the renewal of any such insurance. In all cases, you will be responsible for all insurance costs. Where we arrange any such insurance, or where any such insurance is renewed, the premiums will be debited to your loan account if we have agreed to finance the premiums. Nothing in this clause prevents you taking up or renewing any other consumer credit insurance.

Co-operation

17.1 You must promptly give us any information including about your financial position that we reasonably request. If you do not provide a satisfactory response, you may be in breach of this agreement or where applicable we may continue any action under clause 11.5.

17.2 You must do anything (such as producing and signing documents) that we reasonably require to give full effect to this contract.

Statements

18 Unless otherwise agreed, we give you statements for a loan account every six months. We may choose not to give you a statement if not required by law or an industry code to do so.

Banking Code of Practice

19.1 We have adopted the Banking Code of Practice (“Code”) and relevant provisions of the Code apply to this contract.

19.2 You can request from us a copy of the Code and:

(a) information on our current interest rates and standard fees and charges relating to this contract, if any;

(b) general descriptive information concerning our banking services including for accounts with cheque access, general descriptive information about cheques; account opening procedures; our obligations regarding the confidentiality of your information; complaint handling procedures; bank cheques; and the advisability of you informing us promptly when you are in financial difficulty and of you reading the terms and conditions applying to each banking service we provide to you; and

(c) general descriptive information about the identification requirements of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth), and the options available to you under the tax file number legislation.

Assignment

20.1 We may assign our rights under or in relation to the contract to another person or otherwise deal in any way with those rights where that other dealing is for legitimate business reasons. If this happens, you agree that we may disclose any information or document we consider necessary to help us exercise these rights.

20.2 Your rights under this contract may not be assigned.

Payments and effective dating

21.1 If a day on which a payment must be made is not a banking day, then the payment must be made no later than the next banking day.

21.2 We will apply payments to your account in any order we see fit. You can check if this has occurred by looking at your account statements.

21.3 For the purposes of payments under this contract a day ends at 4.00pm.

21.4 We may assign any date we consider appropriate to a debit or credit to the facility account (but, in the case of a debit, that date must not be earlier than the date on which the relevant transaction occurred). We may subsequently adjust such a debit or credit, or the balance owing on the account, so as to accurately reflect the legal obligations of you and us, subject to consumer credit legislation. If we do this we may make consequential changes (including to interest charges).

21.5 We also have the discretion to arrange the order of payments from your facility account.

Contacting each other

22.1 How notices and other communications can be given

(a) Notices and other communications in connection with this contract must be in writing (unless this contract says otherwise).

(b) They can be given in any way permitted by law. This includes:

(i) via My Applications tab in Internet Banking or other customer specific communication channel with our website;

(ii) by email, SMS or other form of electronic or telegraphic transmission using the contact details last provided for that channel (in this clause 22.1, each called an “Electronic Alert”);

(iii) by post or fax using the contact details last provided for that channel; or

(iv) where given by us, via a newspaper or via a public page on our website.

If we give you a notice or other communication via our website, we’ll promptly tell you that it's available using one of the methods set out in (ii), unless we are not required to do so by law

See our website for more information about how and when we’ll use electronic channels to communicate with you.

When notices and other communications take effect

(c) Notices and other communications take effect from the time they are received unless a later time is specified in them.

(d) For the purposes of (c), notices and other communications are taken to be received as set out below.

(i) If we give a notice or other communication via My Applications tab in Internet banking or otherwise via our website and we’re required by law to give you an Electronic Alert, you are taken to have received the notice or other communication when you receive that Electronic Alert.

(ii) If we give you a notice or other communication via My Applications tab in Internet Banking or otherwise
via our website but we’re not required by law to give you an Electronic Alert, you are taken to have received that notice or other communication when it is first available for viewing on My Applications or otherwise on our website.

(iii) If you give us a notice or other communication via My Applications tab in Internet Banking or otherwise via our website, we are taken to have received that notice or other communication when it is first available for viewing on My Applications or otherwise on our website.

(iv) If a notice or other communication is sent by another form of electronic communication (eg email), the notice or other communication is taken to be received when the electronic communication enters the information system of the recipient.

(v) If a notice or other communication is sent by post, the notice or other communication is taken to be received on the date it would have been delivered in the ordinary course of post.

(vi) If a notice or other communication is sent by fax machine that produces a transmission report, the notice or other communication is taken to be received at the time shown in a transmission report that indicates that the whole fax was sent.

(vii) If a notice or other communication is published in a newspaper, the notice or other communication is taken to be received on the day of first publication.

22.2 Updating contact details

(a) If you change your contact details, including any electronic or physical address, you must notify us as soon as you can.

(b) Please contact us using the details set out on the last page of these General Terms. We’ll also publish our current contact details on our website.

Severance

23 If law makes a term of the contract illegal, void or unenforceable, we both agree that the term remains, but will be read down so that this doesn’t occur. If this can’t be done, you and we agree that only the affected term is to be excluded and the rest of the contract should not be affected.

Restriction on set off, combination or counterclaim by you

24 Except to the extent that you have a right of set off granted by law which cannot be excluded (for example, where a court order permits or where you have established that a payment is not due and payable), all amounts payable to us must be paid by you in full without set off, counterclaim or deduction.

Our rights for set off, combination and counterclaim

25.1 Subject to the section ‘How we may exercise our rights and discretions’, we may, without prior notice, set-off sums standing to the credit of any accounts you have with us towards satisfying any liability you have to us under this contract.

However, we will not combine or set-off your accounts unless you are in default. If there is a default, NAB will promptly inform you after it combines or sets off your accounts.

25.2 To enable the set-off, we may convert any amount denominated in a foreign currency into Australian dollars at the spot rate of exchange quoted by us at or about that time.

25.3 Our rights in 25.1 are additional to any other rights we have to combine your accounts or set-off amounts in them.

Our right to debit other accounts

26.1 Subject to the section ‘How we may exercise our rights and discretions’, if this contract says that an amount will be debited to a nominated account, and there are insufficient cleared funds in that account to cover that amount, we may, at our discretion, overdraw your nominated account. You should refer to the terms and conditions of your nominated account for information on overdrawn amounts.

26.2 Subject to the section ‘How we may exercise our rights and discretions’, if:

(a) this contract does not say which account of yours an amount payable by you will be debited to; or 

(b) 26.1 applies, and we decide not to overdraw your nominated account, we may debit that amount to any account of yours (including the loan account) we choose. We may also open an account in your name if one is required to allow us to make the debit. When choosing which account of yours to debit, or whether to open a new account in your name, we will exercise our discretion, in accordance with this section ‘Our right to debit other accounts’.

26.3 You irrevocably authorise us to debit your accounts as set out in this contract.

Applicable law

27.1 This contract is governed by the law of Victoria.

27.2 Any court cases involving this contract can be held in courts of any State or Territory of Australia with jurisdiction. We’ll give any legal protections available to you in the State or Territory in which you live.

Unacceptable Account Conduct

28.1 We seek to protect our customers from harm arising from unlawful use of, or financial abuse conducted through, our products. We recognise financial abuse may happen to anyone and can include forms of family and domestic violence or elder abuse.

28.2 We will investigate instances where we identify or are made aware that a product is being used in a financially abusive manner, including:

• coercive or controlling behaviour to limit a person’s access to or use of funds;
• making profane, derogatory, discriminatory or harassing comments to any person;
• making or promoting threatening or abusive language to any person;
• making or threatening physical or psychological harm to any person.

28.3 We may reasonably exercise our rights in this contract to suspend, cancel or deny an account holder’s access to credit through redraw, if we reasonably consider it appropriate to protect a customer or another person from financial abuse.

28.4 If you are concerned about your banking safety call our NAB Customer Support Hub on 1300 308 175 or refer to nab.com.au/bankingsafety

Key words explained

acceptance date means the date you accept the offer of credit from us as determined by the secton 'first-steps'.

amount of credit means the amount shown in your letter of offer.

annual percentage rate means the interest rate for this contract.

balance owing means, for a loan account at any time, the difference between all amounts debited and credited to that account at that time. When this amount is to be calculated for the end of a day, it includes all debits and credits assigned to that day.

balance owing on the loan account means the balance owing.

banking day means a day other than a Saturday or a Sunday or a day gazetted as a public holiday throughout Australia.

Banking Code of Practice means the Banking Code of Practice, but before 1 July 2019 refers to the Code of Banking Practice (2013 version).

business day means a banking day.

contracted repayment amount means a repayment amount that you are contracted to pay under this contract, which is described in your letter of offer.

Corporations Act means the Corporations Act 2001 (Cwlth) and includes any consolidation, amendment, re-enactment or replacement of it.

Details means your letter of offer.

disclosure date means the offer date.

electronic communication means a message we or you send electronically, such as email, secure email or SMS.

expected amount outstanding means, on a particular day:

• The amount of credit;
• Less the total amount of scheduled principle and interest repayments that have already fallen due under this contract prior to that day;
• Plus the actual interest, fees, charges and expenses debited to the loan account under this contract.

facility account means any loan account.

General Terms means this document.

GST has the same meaning as in the A New Tax System (Goods and Services Tax Act 1999).

A person is insolvent if:

(a) they commit an act of bankruptcy within the meaning of the Bankruptcy Act 1966 (Cth);

(b) they are otherwise unable to pay their debt when they fall due; or

(c) something having a substantially similar effect to any of the things referred to above happens in connection with them under any law.

interest rate means the interest rate specified in the letter of offer as the interest rate.

loan account means the account used by us to record transactions in relation to the personal loan.

loan amount means the amount of credit.

loan term means the term set out in your letter of offer which commences on the settlement date.

NAB Personal Loan Cover insurance means consumer credit insurance by that name or such other consumer credit insurance which replaces it.

National Credit Code means the National Credit Code set out in Schedule 1 to the National Consumer Credit Protection Act 2009 and includes all regulations under that legislation.

nominated account means any account that we agree with you will be used as a nominated account for a particular purpose.

nominal amount outstanding means the expected amount outstanding.

offer date means the date specified in your letter of offer.

officer means any of our officers (as that expression is defined in the Corporations Act), any person who is authorised to act under our general power of attorney and any solicitor acting on our behalf.

payable in relation to an amount, means an amount which is currently payable, or will or may be payable in the future.

personal loan means the loan described in your letter of offer as a personal loan.

principal and interest repayment is the repayment of both interest and principal specified in your letter of offer.

settlement date in relation to a loan account means the first date we lend you any part of the amount of credit for that loan account.

this contract means the contract comprising your letter of offer and the general terms.

total amount owing means the total owing.

total owing means the total of the balance owing at any time, plus all accrued interest charges, default interest charges and other amounts which you must pay under this contract but which have not been debited to an account at that time.

 trust means the trust described in your letter of offer.

we and us means the credit provider named in your letter of offer and includes our successors and assigns.

you means the person named in your letter of offer as ‘borrower’ and includes their successors and assigns. If there are more than one, you means each of them separately and every two or more of them jointly. In the description of the total owing you refers to you whether alone or jointly or jointly and separately. ‘Your’ has a corresponding meaning.

your letter of offer means the separate document called ‘your letter of offer’ which names you as ‘borrower’, forming part of this contract and, if we agree to change this contract, includes any notice we give you which sets out the details of the agreed change.

The singular includes the plural and vice versa.

A reference to:

(a) a document or agreement includes any variation or replacement of it;

(b) law means common law, principles of equity, State, Territory and Commonwealth laws and regulations and other instruments under them, and consolidations, amendments, re-enactments or replacements of any of them);

(c) ”person” includes any corporation, joint venture, partnership, trust, committee, incorporated or unincorporated organisation and authority;

(d) our consent or approval means our prior written consent or approval; and

(e) “writing” or “written” includes electronic communication.

Information Statement – things you should know about your proposed credit contract

The following information statement only applies to you if the National Credit Code applies to this contract.

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 your credit provider and, if you still have concerns, the AFCA scheme, or get legal advice.

The Contract

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 one 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; or
  • 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 the AFCA scheme. The AFCA scheme is a free service established to provide you with an independent mechanism to resolve specific complaints.

The AFCA scheme can be contacted at
Telephone: 1800 931 678 (free call)
Website: Australian Financial Complaints Authority, opens in new window
Email: info@afca.org.au
In writing to: Australian Financial Complaints Authority
GPO Box 3
Melbourne VIC 3001
Australia

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, opens in new window.

Insurance

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.

General

15. 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.

16. 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 AFCA scheme. Further details about this scheme are set out below in question 18.

17. 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 AFCA scheme or ASIC, or get legal advice.

18. 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.

If you have any complaints about your credit contract, or want more information, contact your credit provider. You must attempt to resolve your complaint with your credit provider before contacting the AFCA scheme. If you have a complaint which remains unresolved after speaking to your credit provider you can contact the AFCA scheme or get legal advice.

The AFCA scheme is a free service established to provide you with an independent mechanism to resolve specific complaints. The AFCA scheme can be contacted at: 

Telephone: 1800 931 678 (free call)
Website: Australian Financial Complaints Authority, opens in new window
Email: info@afca.org.au
In writing to: Australian Financial Complaints Authority
GPO Box 3
Melbourne VIC 3001
Australia

Please keep this information statement.
You may want some information from it at a later date.