The Government has provided lenders an exemption to the responsible lending obligations for existing customers looking to increase their credit during the next 6 months. This change is designed to improve the speed at which banks can provide credit increases to small business.
Improving speed of access access to credit
The Government is providing a 6 month exemption to the responsible lending obligations for Banks providing credit to existing customers. This applies to any business credit including:
- new credit
- credit limit increases
- credit variations and restructures
The primary purpose of this exemption is to improve the efficiency of small businesses gaining access to credit. Whilst responsible lending obligations do not currently apply to business purposes, it can take time for lenders to be satisfied that the money borrowed meets the requirements.
