NAB’s ongoing commitment to StepUP

Underlining its strong and ongoing commitment to microfinance, National Australia Bank has allocated over $1 million dollars per year for the next two years in operational funding of the StepUP loan program.

StepUP low interest loans of between $800 and $3,000 are available to people on low incomes from over 30 locations across Australia. With 80 per cent of loans being used to purchase or repair cars, StepUP is helping thousands of people get to work, drop their kids to school, and stay active in their community.

Head of Community Finance and Development at NAB, Corinne Proske, said “the funding deepens our commitment to helping more low income people become financially resilient.”

“We know that the StepUP program is more than just a loan – it’s a car to get to work or an education to help someone’s child get ahead. We’re grateful to the provider network for their support and look forward to continuing to grow the program together,” Ms Proske said.

The funding agreement comes in the wake of a new report showing the financial conversations StepUP workers have with borrowers can lead to increased financial confidence, and improved attitudes towards budgeting.

Every StepUP applicant has a 45-60 minute financial conversation with a microfinance worker to discuss budgeting, saving, managing bills, and the risks of fringe credit. Anecdotal evidence has long suggested that these financial conversations assist in building borrowes' financial literacy and capability, and this new report confirms as much.

Researches tracked StepUP clients over six months to measure the impact and influence of the financial conversation, and found 66 per cent of loan recipients experienced a general increase in confidence in dealing with their own money.

For more information on StepUP loans, or to find your local provider, head to www.stepuploan.org.au

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