The borrowing nitty gritty

Borrowing nitty gritty

It's easier to apply for a loan through Zagga - the online application and assessment process is simple, transparent and fast.

Provided all required documentation is provided upfront and in a timely manner, we can process your application and provide you with an answer promptly.

The more information you supply, the quicker our response will be.

Reshaping the lending landscape white paper

Understand the trends shaping the lendng environment to date, and the impact on all market participants.

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Risk-based interest rates

We don't believe in one size fits all and we don't believe in all borrowers paying the same rate. Because of this, interest rates differ from borrower to borrower, and loan to loan depending on a credit score.

The Zagga Credit Assessment Score is an alpha + numeric grading system that we assign to borrowers based on the loan specifics and the information they have provided – the better the credit history, the better the credit score and the better the interest rate on the loan. If the credit history is not perfect, or the loan to security value ratio (LVR) on the loan is higher, the credit score will reflect this, resulting in a higher interest rate to meet the higher risk.

This is just one way we bring transparency and equity to lending.

Alpha grading (A-F)

The alpha part of the Zagga Credit Assessment Score considers the borrower’s expected ability to service the proposed loan and the borrower’s credit history. The best grade is A, while F is the worst.

A. Lowest risk. Default is considered remote

B. Low risk. Default is considered highly unlikely

C. Moderate risk. Default is considered unlikely

D. Acceptable risk. Default is not anticipated

E. Possibility of default. Risk features merit close attention and scrutiny

F. High risk of default in the event of changes in the economic and/or business environment

Numeric grading (1-5)

The numeric part of the Zagga Credit Assessment Score considers the loan to security value ratio (LVR). This is the amount of the loan against the value of the security. For example, if the loan amount is $100,000 and the security is valued at $400,000 then the LVR will be 25%. The most secure band is 1 while the highest is 5.

1. LVR under 20%

2. LVR 20% to 34%

3. LVR 35% to 59%

4. LVR 60% to 74%

5. LVR 75% or greater