The Albanese Labor Government is locking in no interest loans for the next five years with an additional $48.7 million to support Australians with the cost of living.
The funding boost to the No Interest Loans program (NILs) will allow Good Shepherd Australia New Zealand in partnership with National Australia Bank (NAB) to continue providing no-fee, no-interest loans for essentials to eligible people.
More than one million Australians have already benefited from NILs.
Good Shepherd administers the scheme, with NAB providing the loan capital. The loans can be used for urgent, critical household purchases and for vehicles for transport to work and essential day-to-day use.
Minister for Social Services, Amanda Rishworth, said the Government's investment will help ease cost of living pressures for many Australians who need support.
"We're proud to support Good Shepherd and NAB to deliver no-interest loans as an alternative to other high risk, high interest products such as Buy Now Pay Later products and payday loans," Minister Rishworth said.
"NILs provides support that is usually unavailable to low-income earners through mainstream providers, meaning tens of thousands of vulnerable Australians can purchase the essential things they need.
"These loans also really help people achieve independence and financial recovery in escaping family, domestic, and sexual violence. And having access to a vehicle gives many Australians the ability and independence to work, study, provide care or seek medical care."
The NILs program is a great example of successful partnerships with industry. The Government has provided funding to Good Shepherd for the administration of NILs since 2009. Around 25,000 general NILs loans are provided each year while nearly 10,000 NILs for Vehicles loans have been provided since this program started in 2021.
Good Shepherd Australia New Zealand CEO Stella Avramopoulos said: "Through powerful partnerships and expanded reach, including into the Northern Territory and First Nations communities, NILs is breaking down barriers, empowering women, sole parents and families, especially those escaping domestic violence, to achieve lasting financial independence and wellbeing.
"With 25 per cent of recipients being sole parents and 18 per cent survivors of family and domestic violence, this support isn't just about financial assistance - it's about providing dignity, stability, and a pathway to a better future.
"This work is only possible because of the strength of collaboration between not-for-profits, corporates such NAB, and government. Together, we're creating meaningful, lasting change - removing credit barriers, preventing predatory lending, and ensuring vulnerable Australians, particularly those in regional and remote communities, have access to the resources they need to recover and rebuild."
NAB Executive Sustainability Jessica Forrest said: "NILs is NAB's longest-standing community partnership, with more than $560 million in zero-interest capital provided over 21 years. Together, we are helping more Australians access credit for life's essentials.
"NAB is proud to provide the loan capital that supports the Good Shepherd NILs program, and pleased to keep working with Government on backing this longstanding program. This funding will ensure more people continue to get the support they need.
"Too often, people in financial stress turn to high-interest payday loans. No interest loans offer a safer alternative, helping Australians borrow money without having to pay any fees or interest."
NILs assists vulnerable Australians to access affordable loans up to $3,000 for household goods, such as fridges, washing machines and furniture, as well as education and medical expenses.
NILs for Vehicles loans up to $5,000 can be used to purchase cars, mobility scooters and related costs such as registration or maintenance expenses.
Individuals can apply for NILs at over 600 locations across Australia. They are available to individuals and families who can service the loan and who:
- earn less than $70,000 gross annually as a single person or $100,000 gross as a couple or person with dependants, or
- have experienced family or domestic violence in the last 10 years, or
- have a Health Care Card or Pension Card.
