The No Interest Loan Scheme (NILS) provides loans to Centrelink recipients and low income earners for the purchase of essential whitegoods and furniture.
AIM OF THE NO INTEREST LOAN SCHEME
To provide people living on low incomes, who live within the Shires of Mitchell, Murrindindi, Strathbogie, Moira and also within the Greater Shepparton region with access to credit to buy essential household items (eg: refrigerator, washing machine or an efficient heater) with a repayment plan tailored to suit their own individual financial circumstances, without the penalty of interest payments, and enable people to get a useful credit reference.
No Interest Loans are not for emergency relief or consolidation of debts.
INFORMATION
The No Interest Loan Scheme will provide people with information about the service, including its purpose, eligibility criteria, policies and procedures. This information will be provided in relevant community languages.
ELIGIBILITY CRITERIA
Low income earners are eligible to participate in the No Interest Loans Scheme. “Low income earners” are any individual person or family who currently hold or are eligible to hold a Health Care Card, Pensioners Concession Card or a Commonwealth Seniors Card.
The loan applicant must also have lived in stable housing for at least the past six months.
LOAN COMMITTEE
A Committee of three people has been established to examine and approve loan applications. This Committee will meet monthly and a minimum of three members must consider all loan applications.
The Interviewing Officers will form part of the loan committee by making an appropriate recommendation.
LOAN INTERVIEW
People who wish to apply for a loan must firstly be interviewed by the Interviewing Officer. A Loan Application Form will be completed by the applicant and then reviewed by the interviewer.
All Applicants when applying for a loan will be asked to present some proof of identity and residential address. Acceptable forms of proof would include a current driver’s licence, pension card, gas, electricity or telephone bill, tenancy agreement or Department of Human Services Housing statement, or other official papers which include the person’s name and address.
The interview will determine -
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if there are any alternatives to the No Interest Loan which would achieve the desired result.
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the ability of applicant to repay the loan (a budget will be worked out at this time to determine a possible repayment plan.)
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nature of goods required.
The Interviewing Officer will provide some consumer education during the interview providing the applicant with information about the need to shop around for the best price, warranty and how to use the Good Shepherd Buying Service if appropriate.
ASSESSMENT OF LOAN APPLICANTS
Assessments of Loan Applications will be carried out by three members of the Loan Committee. Assessments will be based on the eligibility criteria listed above.
Issues to be taken into account for the purposes of assessment will include -
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financial circumstances of the applicant;
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the purpose of the loan;
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long term benefit to be derived;
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any other available options;
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ability of applicant to repay the loan;
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the need for a unanimous decision by the Committee.
Assessments will not be influenced by the applicant’s gender, age disability, sexuality, race, political or religious beliefs.
LOAN LIMITS
As a guide loans may not exceed $800
DECISIONS
The applicant will be advised in writing of whether the loan has been approved or not. If the loan is approved the applicant will be asked to meet with the Interviewing Officer or a Loan Committee member to sign a Loan Agreement form. During this meeting strategies for repayment will be discussed.
REPAYMENTS
Repayments will vary according to applicants’ ability to repay and taking into account each applicant’s current financial commitments.
Under special circumstances the Repayment Plan can be varied. The Loan Recipient will complete a Loan Variation Form and a copy of the Variation will be held by the No Interest Loan Scheme and the Loan Recipient.
Further information and application forms can be obtained by Contacting FamilyCare