A personal loan is when you borrow money from a lender (for example, a bank or financial services provider like RCS) for your personal use. It’s based on your ability and promise to pay it back. There is no collateral attached to it, which means if you (as the borrower) default on repaying the loan, the lender cannot seize your property or car to recoup the loss of your non-payment.

A written agreement between borrower and lender, detailing the terms and conditions of the loan and the repayment of the loan.

This is the amount of money that has to be paid back every month towards your loan. This amount includes a once-off initiation fee and then interest, service and insurance fees.

The period of time over which a you agree to pay back your loan. RCS Loan terms range from 12 to 60 months and you select your repayment term when you apply.

This is insurance taken out by the borrower to repay your loan, in the event that you pass away or are unable to earn an income due to illness or disability.

Customer Protection Insurance (CPI) – insurance on your loan that will provide the following cover:

• Death & Permanent Disability – covers the outstanding balance of your account;
• Loss of Income & Temporary Disability – covers up to 12 months’ instalments

Cover is underwritten by Guardrisk Life Limited, an authorised financial services provider (FSP76) and a licensed life insurer, and 1Life Insurance Limited, an authorised financial services provider (FSP24769) and a licensed life insurer

This is the percentage at which interest is charged for your loan. The interest rate charged on an RCS Loan is fixed, meaning that it does not change over the term of the loan. The interest rate charged is governed by the NCA and we will never exceed the rate recommended in the NCA regulations.

This is a history or record of a person’s ability to pay their debts. Basically, it’s a record of how well you’ve been able to meet your financial or debt obligations. Your credit history is summarised as a credit score, which lenders will use to determine whether to grant you credit. A good credit history and a favourable credit score is a good start to getting your loan approved easily. Your credit history and credit score can be requested as part of a credit report. To see your own credit record, ask Transunion for a credit report.

This is a once-off fee, which you are charged when your loan agreement is initiated.

A monthly fee debited from your account for the administration of your loan account.