SME Rate Decreasing Loan Launched by Lumi
(17 June 2022 – Australia) Non-bank lender Lumi has launched an Australian first small business loan offering that will see SMEs with good repayment standing enjoy 25 basis point loan rates declines every six months.
Lumi has launched a new business loan labelled “Lumi Lux” that decreases rates for business customers that have solid repayment histories. Available through the broker channel, Lumi offers SMEs loans of between A$200,000 and A$500,000 with annual percentage interest rates ranging from 14-20 percent.
The product also has an extended loan term of up to four years for more established enterprises in response to growing demand for a longer-term loan.
“Most lenders keep borrowers at the same rate, regardless of behaviour or loyalty, while this new product liberates borrowers from loyalty tax. In a rising interest environment, we wanted to develop a product that is countercyclical and actually decreases their rate over the term of the loan. It is the only business loan in Australia that dynamically rewards customers for good repayment histories over the term of the loan” commented Lumi CEO Yanir Yakutiel.