Health, home and life skills improve through microfinance
Microfinance is a method of providing small, low- or no-interest loans to people who otherwise have difficulty in obtaining a loan. These loans are often used to improve the recipient’s home environment or health, or to assist with further education that will make it easier for them to find work.
The Victorian Government’s Department of Planning and Community Development (DPCD) is supporting communities with a $4.7 million contribution the No Interest Loan Scheme (NILS).
This microfinance scheme provides eligible low-income earners with loans of up to $1,200. The loans assist purchases of essential household items or other health or education needs.
In addition to providing much needed funds, the NILS loan process helps to develop financial literacy and build assets for people on low incomes. NILS provides a fair, safe and equitable credit option for people who may have trouble accessing the mainstream credit system due to low income or credit rating. For many it provides a first step towards mainstream banking access.
NILS was established by Good Shepherd Youth and Family Service 25 years ago. DPCD is supporting Good Shepherd to extend NILS from 41 to 77 Victorian communities. The National Australia Bank has provided a further $5 million in capital for the scheme.
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