About this page

This target market determination (TMD) is required under section 994B of the Corporations Act 2001 (Cth). This TMD seeks to offer consumers, distributors, and staff with an understanding of the class of consumers for which this product has been designed (target market), having regard to the objectives, financial situation and needs of the target market.   

On this page the term “RAA Finance”, refers to the issuer of the loan products, RAC Finance Limited ABN 77 009 066 862 Australian Credit Licence 387972.

This page is not to be treated as a full summary of the product’s terms and conditions and does not take into account any person’s individual objectives, financial situation or needs and is not the provision of financial advice. The customer must refer to RAA Finance’s loan terms and conditions and any supplementary documents such as the loan contract and schedule which outline additional terms and conditions when deciding about this product.

This TMD is effective from 5 October 2021.

RAA Finance personal loan products

RAA Finance loan products provide:

  • Personal loan finance for regulated customer credit to individuals

This TMD sets out the target market for:

  • Secured personal loan; and
  • Unsecured personal loan.

This is set out under the heading RAA Finance Personal Loan TMD Appendix on this page.

Distribution:

Who can distribute this product

This product is issued by RAC Finance to be distributed in South Australia (SA) by the Royal Automobile Association of South Australia (RAA) under the product name of RAA Finance through:

  • RAA contact centre;
  • RAA shops;
  • RAA targeted marketing and advertising; and
  • RAA website.


Conditions/restrictions on distribution:

Only RAA is authorised to distribute this RAC Finance loan product as they understand the target market the product is designed and intended for and are trained and competent in the relevant acceptance criteria for each product.

Reviewing the TMD

RAC Finance will review this TMD within 15 months from the effective date and at least every 27 months thereafter to ensure it remains appropriate.

RAC Finance will also review this TMD following the occurrence of any event or circumstance that should arise (called a ‘review trigger’) suggesting the TMD is no longer appropriate. This may include (but not limited to) events such as:

  • A change to the key product attribute or eligibility criteria that impacts the suitability of the product for the target market;
  • The proportion of individuals to which the loan products are provided which are outside the target market;
  • Regulatory change or use of product intervention power that impacts this product or target market for the product;
  • Material or unexpectedly high number of customer complaints indicating the product is no longer suitable to the target market;
  • The product is not being distributed in accordance with this TMD; 
  • Nature of Material feedback from member satisfaction surveys indicating the product is no longer suitable to the target market; and
  • Review outcomes from analysis of business data that indicates actual or potential harm or financial loss such as personal loan approval and default rates that indicates that the product is no longer suitable to the target market.

The information RAC Finance requires from the distributor to identify a review trigger or circumstance that would reasonably suggest that the TMD is no longer appropriate, is included in the Reporting requirements below. 

Reporting

RAA must record all complaints received about the product design, product availability and distribution of this product and report this information as soon as practicable (but in any case within 10 business days of the end of each quarter). 

If applicable, RAA may have additional obligations when responding to complaints under its appointment as a representative of RAC Finance.

RAA is obligated to report to RAC Finance as soon as practicable if they become aware of a matter that would give rise to a 'review trigger’ or a circumstance that would reasonably suggest that the TMD is no longer appropriate.  

Also, RAA is to provide RAC Finance sales data and other information required in accordance with the distribution arrangements and service level agreements for the loan product.

 

RAA Finance Personal Loan TMD Appendix

1. Personal loan - secured

Description of Target Market

This product is likely to be appropriate for individuals whose objective is to purchase a new or used motor vehicle, motorbike, boat, jetski, caravan, or camper trailer. 

It is also likely to be appropriate for individuals who require funds for refinance, debt consolidation, home improvements, travel, study, or other purpose. 

This product will only be appropriate where the individual can provide such registered goods or property as security.

 

Key attributes

  • Loan amount from $8,000 to $100,000 (or additional if deemed suitable through the loan assessment and approval process);
  • Loan term 3-7 years for purchase of car, boat, caravan, or camper trailer;
  • Loan term 3-5 years for motorcycle and jetski;
  • Multiple applicants on the one application;
  • Fixed interest rate;
  • No ongoing fees;
  • Pre-approval usually within 7 working hours;
  • Can apply either online through RAA’s website, contacting RAA’s call centre, or visiting a RAA shop or directly through RAA Finance if an existing customer; and
  • Optional repayment methods available either by direct debit, BPay or direct credit. 

 

Eligibility criteria

RAA Finance loan products are designed to be distributed to individuals who meet the following criteria.

This product is suitable for those who:  This product is not suitable for:
Are over 18 years of age Those who fail to meet the eligibility criteria
Are receiving a regular income and able to service the loan principal, interest, fees, and charges Anyone who was bankrupt in past 7 years or is under a debt arrangement
Hold a valid Australian driver’s licence (at least one applicant) or learners permit (for motor vehicle loans) Those who offer security primarily used for business/commercial purposes
Are able to offer security for the loan registered in SA (or NSW if reside in Broken Hill) in the applicant’s name  Those unable to offer suitable security for the loan
Are an Australian citizen or permanent resident, residing in SA or Broken Hill NSW Customers wishing to lease goods
Satisfy the loan assessment criteria, including a credit suitability assessment People purchasing vehicles with an ANCAP rating of less than 4 stars
  Motor vehicles used for ridesharing purposes
  Those under the age of 25 years offering a High Powered Vehicle as security
 

 

Appropriateness

Based on its assessment of the above key product attributes and eligibility criteria of this product, RAC Finance finds that these are likely to be suitable and consistent with the objectives, financial situation and needs of the identified class of consumer that comprises the target market for this product.

 

2. Personal loan - unsecured

Description of Target Market

This product is likely to be appropriate for individuals who are a home/land owner or have a mortgage that reside in SA or Broken Hill NSW whose objective is to purchase a new or used motor vehicle, motorbike, boat, jet-ski or caravan. It is also likely to be appropriate for individuals who require funds for debt consolidation, home improvements, travel, study, or other purpose.

This product is appropriate where the individual is unable or does not wish to provide such registered goods or property as security.

 

Key attributes

  • Loan amount from $8,000 to $20,000 (or additional if deemed suitable through the loan assessment and approval process);
  • Loan term 3-5 years;
  • No assets are used as security for the loan;
  • Multiple applicants on the one application; 
  • Fixed interest rate;
  • No ongoing fees;
  • Pre-approval usually within 7 working hours;
  • Can apply either online through RAA’s website, contacting RAA’s call centre, or visiting a RAA shop or directly through RAA Finance if an existing customer; and
  • Optional repayment methods available either by direct debit, BPay or direct credit.

 

Eligibility criteria

RAA Finance loan products are designed to be distributed to individuals who meet the following criteria.

This product is suitable for those who: This product is not suitable for:
Are over 18 years of age Those who fail to meet the eligibility criteria
Are a registered residential property/landowner or buyer in SA or Broken Hill NSW Those unable to substantiate the purpose for borrowing
Are receiving a regular income and able to service the loan principal, interest, fees, and charges Anyone who was bankrupt in past 7 years or is under a debt arrangement
Are an Australian citizen or permanent resident, residing in SA or Broken Hill NSW  
Satisfy the loan assessment criteria, including a credit suitability assessment  

 

Appropriateness

Based on its assessment of the above key product attributes, attributes, and eligibility criteria of this product RAC Finance finds that these are likely to be suitable and consistent with the likely to be suitable and consistent with the objectives, financial situation and needs of the identified class of consumer that comprises the target market for this product.