We hope these FAQs will answer any questions you may have regarding the new government regulations that were released on the 1st of May 2020 and the 1st of June 2020 relating to high-cost loans.
You can see all of the regulations explained here.
A high-cost loan is stated in the regulations as any loan with an annual interest rate of 50% or more.
Your current SMB loan balance and term will remain the same, as well as your repayments. However your available credit limit for top-ups will be affected on open KickStart loans. Unfortunately we will no longer be able to offer this service on our KickStart due to new government regulations that were released on the 1st of May 2020.
If you feel like your circumstances have changed and you are struggling with your repayments, please get in touch with us and we will be happy to help you!
If you have any questions please do not hesitate to get in contact with us. Call us FREE on 0800 272 836, FREE text 4071, or email loans@savemybacon.co.nz.
You can read more about the government regulations here.
As a loyal SMB customer, we would love to help you and top-up your KickStart loan when you need more funds, however new government regulations introduced on the 1st May 2020 now mean we are unable to offer top-ups to our customers who have an open high-cost SMB loan*.
These new rules also mean you are not able to go to any other high-cost lenders whilst you have an open high-cost loan. You can read more about these rules here. The Total Cost of Credit Cap regulation means the limit left on your loan is not enough for you to top-up and borrow more money, as the amount paid back would be greater than double your initial loan advance.
We are sorry, this is out of our control, we do want to help our customers but unfortunately due to this change we are not allowed to!
Don’t worry! Next time you apply with Save My Bacon you will be able to apply for our NEW Flex Loan – Flex has a lower interest rate and flexible repayment options, that can strengthen your credit score if you keep on track with your repayments. And you can top-up! Yay! Top-ups will still be subject to our normal lending assessment.
Once you have repaid your current KickStart loan, we will get in touch to let you know when you are able to reapply.
*a consumer loan is deemed to be a high-cost loan if the annual interest rate is 50% or more
Yes! All of Save My Bacon's products from the 22nd June 2020 are now non-high-cost. The new government regulations to high-cost loans do not apply to Save My Bacon loans approved on or after 22nd June 2020.
Yes, you are able to apply with us. Our lending criteria still applies and an assessment will be completed to ensure our loan is suitable for you.
Need further funds on your loan? Can’t get these funds from another lender? We can help!...
As a loyal SMB customer, we would love to help you and top-up your KickStart loan when you need more funds, however new Government regulations introduced on the 1st May 2020 now mean we are unable to offer top-ups to our customers who have an open high-cost SMB loan*.
These new rules also mean you are not able to go to any other high-cost lenders whilst you have an open high-cost loan. You can read more about these rules here. The Total Cost of Credit Cap regulation means the limit left on your loan is not enough for you to top-up and borrow more money, as the amount paid back would be greater than double your initial loan advance.
We are sorry, this is out of our control, we do want to help our customers but unfortunately due to this change we are not allowed to!
Don’t worry! Next time you apply with Save My Bacon you will be able to apply for our NEW Flex Loan – Flex has a lower interest rate and flexible repayment options, that can strengthen your credit score if you keep on track with your repayments. And you can top-up! Yay! Top-ups will still be subject to our normal lending assessment.
Once you have repaid your current Kickstart loan, we will get in touch to let you know when you are able to reapply.
*a consumer loan is deemed to be a high-cost loan if the annual interest rate is 50% or more
No, from the 1st of June you cannot be approved for a high-cost loan if you already have an open high-cost loan. The new regulations state that you cannot have more than one open high-cost loan at any time. You can however apply for non-high cost loans.
The new regulations have introduced a stand down period. Which means, when you close a high-cost loan you need to wait 15 days before you can get a new high-cost loan.
You are also only able to have two high-cost loans approved within a 90 day period.
You can read more about the government regulations here.
Once you have paid back your SMB KickStart loan in full, you can then reapply after waiting your 15 day stand down period. We will let you know when you are welcome to reapply via text!
Yes! In some circumstances you can reapply for another SMB loan if the loan you closed is not a high-cost loan.
If you previously had our high-cost loan then you must wait 15 days until you can reapply with us.
Each new loan application is subject to our normal lending criteria and assessment, so if you have closed your SMB loan with a loan from another provider, this will be included in our suitability assessment and may change your current financial position.
Just like normal, you can only have one Save My Bacon loan open at a time. However with our new Flex loan you will be able to top-up when you need more funds!
You sure can! We are offering top-ups on our Flex loan.
Basically, a top-up is a new loan, just with a portion of the funds being used to settle your previous loan balance.
You just need to make sure the top-up is enough to clear your existing loan balance AND cover off what you need the new loan for.
The amount you can top-up by is dependent on your individual circumstances! Each top up request for additional funds is subject to a full credit assessment.
What we look at when we assess your top-up loan application:
When you are eligible to apply for more funds, head to your ‘My Account’ section and follow the instructions to top-up there.
Follow this link to get to your my account section here.
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