In anticipation of a spike in demand for near prime lending triggered by COVID-19, a non-bank lender has launched a promotional rate for the market segment.
Pepper Money will offer the special, with its lowest-ever near prime rates starting from 3.79% p.a. (from 4.10% p.a. comparison rate), from now until the end of October.
Dubbing itself the “architect of near prime lending”, the lender has originated more than $9bn in near prime loans to its customers since launching in 2012.
“We are starting to see more customers who may have been impacted by COVID regain greater certainty about their incomes, and in the future, many will be considered near prime customers,” explained Aaron Milburn, Pepper GM of mortgages and commercial lending.
While announcing the rate special, the group also highlighted its same-day turnaround times.
“No other lender in the market today can issue an indicative approval for a near prime loan with a full credit check in under two minutes,” said Milburn.
“Whether a customer is refinancing, rebuilding or recovering, people are simply looking to improve their situation in life. And in real life, being presented an alternative solution is a much-preferred outcome than sitting on the side lines with no solutions to consider.”
Pepper has also recently enacted several adjustments to its credit policy, returning certain features to pre-COVID levels including accepting 100% of casual and overtime income, accepting commissions and bonus earnings, as well as allowing cash out for verified purposes.
In addition to these overarching changes, the lender plans to continue its individualised approach to assisting COVID-19 impacted customers.
“We are committed to providing brokers and their customers with flexible and competitive lending products across mortgages, commercial, asset finance and personal loans to help them achieve their goals,” Milburn reiterated.
