A loan quote and a loan contract are different documents. Before signing, check that the final contract describes the amount, costs and repayment structure you believe you accepted. Keep the quote so you can identify changes precisely.
For credit covered by the National Credit Code, section 17 specifies contract information, including the credit provider, credit amount, relevant interest information, repayments and fees. The requirements have qualifications for different products. This checklist is for reading a consumer loan contract; business-purpose credit needs separate consideration.
Reconcile where the borrowed money goes
Write down the amount of credit, fees added to it, amounts paid to each recipient and the amount available for your purpose. Compare those entries with the purchase or payout documents.
For illustration, a $20,000 purchase plus $500 in financed fees means $20,500 borrowed if the full purchase is funded and there is no deposit or other adjustment. The repayment calculation must use the financed amount, not just the $20,000 sticker price. Do not add the same fee again as an upfront cash cost.
Ask for an explanation if the amount reaching a supplier differs from the amount you expected. "Loan amount" and "cash available" are not always the same figure.
Read the rate and repayment together
Locate the rate type, the annual rate or rates, how interest is calculated and when it is charged. Section 17 has different requirements for particular credit products, including small amount and low cost credit; do not use a missing ordinary-loan interest field alone to diagnose a legal breach.
For the proposed loan, identify first repayment date, frequency, instalment amount, number of instalments and any final balloon. A weekly figure is not a monthly figure divided by four. Ask for the written schedule where timing or the last payment is unclear.
Our repayment calculation guide explains the mechanics, and the comparison rate guide covers comparing costs across offers.
Separate unavoidable and conditional charges
Record establishment and ongoing fees separately from charges triggered by late payment, dishonour or early payout. Note whether each is financed or paid separately. Compare the fee descriptions with your quote and the contract's calculation rules.
Read security and guarantee documents as part of the package. If you cannot tell what property or person is exposed, resolve it before signing. Our director guarantee guide deals with a separate business-finance obligation.
Use a discrepancy list instead of guessing
Our suggested list has four columns: quote entry, contract entry, difference and written explanation or correction. Keep it short and specific. Ask the lender or broker to supply the corrected final documents where required; do not annotate a downloaded contract and assume that changes the agreement.
The broker document checklist covers the broker's disclosures, a different part of the paper trail. If you have already signed, the cancellation guide explains why the stage of the transaction matters. A checklist is most useful while you still have time to resolve uncertainty before signing.
