Common use of Loan Offset Clause in Contracts

Loan Offset. 3.1 If Loan Offset applies to your loan, to calculate your interest charges, each day we divide the balance owing on your loan account into the following two parts: (a) a part equal to the credit balance(s) in the BankSA account(s) nominated by you and linked to this loan (“linked account”). Any interest rate applying to a linked account ceases to apply from the date the account is linked to the loan. We charge interest on that part at: • the annual percentage rate; • less • the interest offset rate we set in relation to the credit balances in your linked account(s). That interest offset rate is always less than the annual percentage rate; and (b) the remaining part of the balance owing on your loan account. We charge interest on this part at the annual percentage rate. Any reduction in interest charges through Loan Offset is not reflected in a lower repayment amount. Instead, the term of your loan may shorten. 3.2 If the credit balance(s) in your linked account(s) exceeds the balance in your loan account, you do not receive any benefit for that excess. 3.3 You do not earn interest on any credit balance in the linked account(s) (even if

Loan Offset. 3.1 If Loan Offset applies to your loan, to calculate your interest charges, each day we divide the balance owing on your loan account into the following two parts: (a) a part equal to the credit balance(s) in the BankSA Bank of Melbourne account(s) nominated by you and linked to this loan (“linked account”). Any interest rate applying to a linked account ceases to apply from the date the account is linked to the loan. We charge interest on that part at: • the annual percentage rate; • less • the interest offset rate we set in relation to the credit balances in your linked account(s). That interest offset rate is always less than the annual percentage rate; and (b) the remaining part of the balance owing on your loan account. We charge interest on this part at the annual percentage rate. Any reduction in interest charges through Loan Offset is not reflected in a lower repayment amount. Instead, the term of your loan may shorten. 3.2 If the credit balance(s) in your linked account(s) exceeds the balance in your loan account, you do not receive any benefit for that excess. 3.3 You do not earn interest on any credit balance in the linked account(s) (even ifif the credit balance is more than the balance owing on your loan account).