Responsible Lending: What It Means and Why It Matters
By Sunshine Loans
Learn what responsible lending means in Australia, why lenders ask about your income, expenses and debts, and how it is designed to protect you.
What is Responsible Lending?
Responsible lending is a set of legal obligations that require credit providers in Australia to ensure they only offer loans that are not unsuitable for the borrower's circumstances. These obligations are set out in the National Consumer Credit Protection Act 2009 (NCCP Act).
The NCCP Act and Your Rights
Under the NCCP Act, all licensed credit providers must:
- Make reasonable inquiries about your financial situation
- Assess whether the credit is unsuitable for you
- Provide you with a Credit Guide
- Give you a copy of your assessment if requested
How Sunshine Loans Meets These Obligations
Sunshine Loans holds Australian Credit Licence Number 390556 and takes its compliance obligations seriously. Before approving any loan, we review your income and expenses to ensure repayments won't cause financial hardship.
Hardship Provisions
If your circumstances change and you're struggling to meet repayments, you have the right to apply for hardship assistance. Contact Sunshine Loans as early as possible — we're here to help find a solution.
General information only; not personal financial or legal advice. Consider your circumstances and seek independent advice where needed.