of clients live in single parent families with dependents
No Interest Loan Scheme (NILS)
For many people on low incomes, paying for essential goods and services is a struggle, and the effects of going without can be huge.
Without a fridge you can’t store fresh food, without a computer kids can be left behind at school, and if you can’t afford the pre-apprenticeship course, education can stall before it even begins.
The No Interest Loan Scheme offers people on low incomes safe, fair and affordable loans for fridges, washing machines and furniture, as well as education and medical expenses.
NILS also provides a safe and affordable alternative to the high cost finance options such as payday loans or ‘rent to buy’, products which promise ‘fast cash’ but often compound a person’s financial situation.
To be eligible for NILS you must have a healthcare or pension card, earn under $45,000, have lived in your current residence for three months, and have a willingness and capacity to repay the loan. There are no credit checks.
NILS is a leading example of Circular Community Credit. When a borrower makes a repayment, those funds then become available to someone else in the community. Clients recognise that repaying their loan means someone else is given the same opportunity they were – consequently, the repayment rate is constantly 95 to 97 per cent.
NILS reflects Good Shepherd Microfinance’s focus on improving opportunities for women and girls, with women representing 66 per cent of NILS clients. And our commitment to reconciliation and closing the gap is highlighted by the 23 per cent of clients that identify as Aboriginal or Torres Strait Islander people.
Research shows that four out of five NILS clients are moving away from crisis and hardship towards stability and resilience – achieving economic mobility. In addition, four out of five clients who have used payday lenders in the past have stopped using them since accessing NILS.
NILS is supported by the Australian Government as part of its five year, $33.3 million investment in microfinance, and our long standing corporate partner, the National Australia Bank.
of clients live in single parent families with dependents
of clients identify as Aboriginal or Torres Strait Islander people
of loan recipients were women
of loans are fully repaid
average loan amount
dedicated microfinance workers & volunteers
locations across Australia
people reached
'Rent to buy' companies would be required to disclose the total cost of their contracts and abide by a new price cap if the Australian Government adopts the recommendations of its review into Small Amount Credit Contracts.
Read MoreThe independent evaluation by the Centre for Social Impact found that the NILS program diverts clients away from predatory lenders such as fringe credit providers and goods rental services.
Read More
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When I was successful in getting a loan, it picked me up. I felt I was in control again.
Norma, NILS client