|A Transactional Loan is defined as any loan product whereby
- Interest is calculated on the daily loan balance and charged monthly in arrears;
- Income and revenue may be credited directly into the loan account at any time (or into an offset account);
- Redraw from the loan account is available up to an agreed “Credit Limit”, which may be the amortisation schedule of a term loan (or Redraw is available from an offset account);
- The loan account (or an offset account) is a fully transactional facility whereby the account-holder may transact frequently within the credit limit via ATM and Internet.
Credit Card means any credit or charge card account whereby:
- An interest-free period is provided so that no interest is payable if the closing balance of the account (as at the statement date) is paid in full by the due date.
Offset Account means any transactional deposit account whereby:
- The transactional deposit account operates in conjunction with a Non-Transactional Loan product;
- Interest is calculated daily and applied monthy in arrears; and
- The transactional deposit account has the equivalent interest rate to that of the Non-Transactional Loan product and operates in such a way that the interest payable on the Non-Transactional Loan product is reduced by the amount of the interest that would have been earned on the transactional deposit account.