Responsible lending

You’ve probably heard the phrase ‘responsible lending’ and it’s pretty important when it comes to small loans.

Responsible lending is about ensuring the lender only offers the customer a loan when it is suited to their needs and individual situation. There are regulations that lenders must comply with to ensure that they meet their responsible lending obligations.

At Speckle, we aim to take this a step further. Responsible lending is one of the key reasons why we’re in this business. Here are the three ways that we’re lending responsibly:

  1. PEOPLE. Our customers are real people experiencing life’s ups and downs. We aim to understand and respect our customers. This means we carefully assess their individual needs and circumstances because the last thing that we want to do is leave them in a worse situation. Sometimes we may decide that a Speckle loan is not the customer’s best option. If this happens we’ll refer the customer to other products and services that might be able to assist them.
  2. PROFITS. We don’t need them. Yes, we need to cover the cost of our business operations but we don’t need to return a profit – because we’re not-for-profit. It’s pretty unusual – a not-for-profit lender! That means we keep fees as low as possible, which helps to ensure that people don’t get into financial trouble.
  3. PURPOSE. A strong purpose makes all the difference. Our purpose is to help customers borrow better so that they can bounce back when life happens. But we know that sometimes circumstances change, and customers who have the best intentions, might face short-term difficulties in keeping their commitments. We’re here to work through those times and to support customers to follow through on their intentions.

Good Shepherd Microfinance holds an Australian Credit License (no 492819) issued by the Australian Securities and Investments Commission and comply with responsible lending obligations.