NAB re-enters low doc loan segment
National Australia Bank will market low doc loans to self employed borrowers. The bank will require the borrower to have equity equal to 40 per cent of the value of a security property. The bank won’t charge an interest rate premium for the loans. Small business operators may borrow up to $750,000 through low doc lending. NAB’s willingness to offer low doc loans represents a change of tack. The bank offered some low doc loans, at a higher price, in early 2003 but ceased to do so on the grounds the loans were too risky.