Gem Personal Loans

Broker manual

Gem Personal Loans

30 June 2017

Broker manual

Gem Personal Loans

Contents

Why choose Gem for your client? ........................................................................................................2 Gem personal loan customer profiles ..................................................................................................2 Personal loan product descriptions......................................................................................................3 Application process...............................................................................................................................4

Quick tips for a smooth application process Potential Declines Customer FAQs......................................................................................................................................6 Got questions? ......................................................................................................................................6 Appendix Lending Policies ..............................................................................................................................7

Employment Income Acceptable Proof of Address (POA) Acceptable Primary Identification Broker application checklist .........................................................................................................14 Online application response pages ..............................................................................................15

1

Why choose Gem for your client?

> 1M Kiwis have had a Gem product & previous good history can strengthen an application

Has your client ever had a GEM Product?

No Gem accounts but the customer has good repayments elsewhere?

Great! Gem incorporates comprehensive credit reporting data in all credit decisions

Rates personalised to each customer's own circumstances

Gem rewards good credit history with low rates and may give those with a poorer history a chance to get their rating back on track

Security may help application approval

For poorer credit histories we may accept security to help get an application over the line

Flexibility No hidden fees

Pay weekly, fortnightly or monthly. Pay in advance, or even pay out in full early, with no penalties

One initial establishment fee and, if you stay on track, that's it.

Gem personal loan customer profiles

The table below gives an indication of what rating a customer may get, prior to formal assessment of their application.

Typical attributes Employment

Residential status

Credit history

12.99% AA Excellent

Stable long term Full time

Home buyer/Owner stable residency

Well established Excellent credit history

20.99% Less stable full time / part time

Established good history

29.99% start of credit journey E

Shorter term or Casual / Seasonal

Renter or Boarder

Little to no credit history

Gem history

NOTE: Current or previous good history with Gem products may strengthen an application

This is a reference guide only and is subject to our assessment criteria. Application outcomes may vary. Credit provided by Latitude Financial Services Limited.

2

Personal loan product descriptions

Gem Personal Loans can make big plans happen sooner with tailored loans to suit a range of budgets and lifestyles.

Loan amount

Starting from $2,000 ($6,000 for secured car loans)

Loan terms

6 months - 7 years

Security Types

We accept motor vehicle, motor cycle, caravans, boats & Jet-skis with registered trailers, registered mobile home and camper trailers. All vehicles must be unencumbered and registered in the customer's name

? Vehicle must have a current WOF and registration ? Confirmation of insurance with Gem as the interested party on the policy Note: Security does not need to be valued at full loan amount.

Eligibility

? At least 18 years old ? Permanent NZ resident ? Earning a stable income ? Have a valid driver's licence for Car loans

Loan Purposes

Loans for a variety of purposes including: ? Debt consolidation ? Vehicles and recreational products ? Holidays, weddings, and other life events

Note: If the customer has a vehicle encumbered to another provider we could consolidate that loan with new Gem lending and use the security.

What we don't lend on:

Any purpose prohibited by Latitude Policy and/or regulatory requirement such as: ? Home loan deposits & bridging finances ? Business loans ? Construction loans

APR

Our Personal Loan pricing is based on a rate for risk model.

? Unsecured rates range from 12.99% to 29.99%

? Secured rates for car loans range from 12.99% to 18.99%

Per the customer profiles section above, rates depend on the applicant's personal

circumstances and credit history. Interest is calculated daily and accrued monthly.

Fees

$240 establishment fee

$35 Late fee

$1.50 for PostShop over-the-counter payment

No early repayment fee or monthly fees.

Timeframes

Up to one business day for application response Settlement times may vary depending on circumstances ? Next day direct deposit to customer post contract acceptance

Documents to support customer application

? NZ driver's license, passport or firearms license (if DL or Passport not available) ? Proof of income ? Details of amounts owing, including other loans, credit/store cards & overdrafts ? Details of rent and/or mortgage payments ? Proof of address

3

Application process

Applying is easy and Gem will generally advise the outcome of the application within one business day. Some applications may receive a decision within 60 seconds!

Step 1

? LFS Privacy Notice/Disclosure Acknowledgement accepted.

apply

? Send email to GemBroker@ with:

(online)

signed (email acceptance is allowed) LFS Privacy Notice/Disclosure Acknowledgement;

completed checklist1 along with documents on checklist; and

loan packaging story; details for lending team on any potential cautionary flags

? If LFS online Broker Authorization form accepted, complete Gem online application form and receive initial application status.2

- Include Broker `promo' code (Gem to provide) on front page.

- Online app must not be left idle after entering email address because system locks it and support needed to unlock.

Broker fee to be included in debts section. Select `Other' Insert Broker name and "Fee" in Institution field Insert fee amount in both amount fields (Borrowed and Repayment) Frequency = week Tick "I want to pay out this debt..."

e.g. ABC Loans Fee or ABC Loans Insurance

Insurance (sold by broker) to be included in debts section.

Select `Other' Insert `Broker name' and "Insurance" in

Institution field Insert premium amount in both amount

fields (Borrowed and Repayment) Frequency = week Tick "I want to pay out this debt..."

or

Step 1 apply (offline)

? LFS Privacy Notice/Disclosure Acknowledgement accepted.

? If LFS online Broker Authorization form not accepted, forward customer application for rekeying3. Note Broker `promo' code (Gem to provide) on front page.

? Send application via email to GemBroker@ with:

1 Refer Appendix for Checklist 2 Refer appendix for Online Response pages 3 Applications requiring rekeying will take longer to process compared to the Gem online application form

4

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