Sept2011_Pine Rivers No Interest Loan Scheme
– Easing the pinch in the Pocket
With the rising cost of petrol and living expenses, low income families are feeling the pinch in the pocket when essential major items break down and need replacing.
With the rising cost of petrol and living expenses, low income families are feeling the pinch in the pocket when essential major items break down and need replacing.
The Pine Rivers No Interest Loan Scheme has been operating for 6 months, using community volunteers to give No Interest Loans of up to $1200 for people on low incomes. Capital of $50000 was allocated to the local community finance scheme from the National Australia Bank. The scheme is a partnership between the Pine Rivers Neighbourhood Centre, Federal Government and the Good Shepherd Youth and family Service. All loans are completely free of any fees and interest.
“We’ve given out loans for quite a range of household essentials,” states NILS Development Worker Chris Mundy. “Fridges, Laptops, Beds, mowers…….even carpets.” “One community member had stopped his volunteer work because he couldn’t afford cataract surgery. A NILS loan literally gave him his sight back so he could re-engage with his community.”
To be eligible for a NILS loan, applicants need to be low income earners in the Pine Rivers area. Loans are for essential household items only and payment is made directly to the supplier. NILS loans cannot be used for bills, debt consolidation, bonds, rent or living expenses. NILS applicants are required to produce a number of financial documents that demonstrate they have the capacity to pay back the loan and are required to attend an interview with a NILS volunteer worker to formulate a budget.
“We are keen to allocate $50,000 in NILS loans to those that are eligible and have the capacity to pay back the loan,” states Mr Mundy. Items such as whitegoods, computers, TV’s, furniture, heating, cooling, medical and dental expenses are all classed as essential household items.
The NILS scheme is run by local community volunteers and operates on Mondays and Tuesdays. Those interested in a NILS loan can contact the Pine Rivers Neighbourhood Centre on 3205 2955 or nils@prnc.org.a u
Further information about eligibility can be found at www.prnc.org.au .
No Interest Loan Scheme Case Study: Gina
Gina is a single mum who works part time and is on a single parenting payment from Centrelink. She always manages her small income very well. With an aim to move into the human services sector, she began studying a certificate in Community Services a couple of days per week, however with no computer and printer it made her studies increasingly difficult. She heard about the Pine Rivers No Interest Loan Scheme through her course coordinator. Despite her low income, her good money management skills meant she was an excellent candidate for a No Interest Loan. So after getting two quotes for a new laptop package and gathering documentation on her financial situation, she applied for the loan. The review committee were happy to approve her loan and within two weeks she was the owner of a new laptop. As the total cost of the laptop and printer was $1200 her repayments were only $30.77 per fortnight over 18 months and could be directly deducted from her Centrelink payments via the Centrepay facility.
“We’ve given out loans for quite a range of household essentials,” states NILS Development Worker Chris Mundy. “Fridges, Laptops, Beds, mowers…….even carpets.” “One community member had stopped his volunteer work because he couldn’t afford cataract surgery. A NILS loan literally gave him his sight back so he could re-engage with his community.”
To be eligible for a NILS loan, applicants need to be low income earners in the Pine Rivers area. Loans are for essential household items only and payment is made directly to the supplier. NILS loans cannot be used for bills, debt consolidation, bonds, rent or living expenses. NILS applicants are required to produce a number of financial documents that demonstrate they have the capacity to pay back the loan and are required to attend an interview with a NILS volunteer worker to formulate a budget.
“We are keen to allocate $50,000 in NILS loans to those that are eligible and have the capacity to pay back the loan,” states Mr Mundy. Items such as whitegoods, computers, TV’s, furniture, heating, cooling, medical and dental expenses are all classed as essential household items.
The NILS scheme is run by local community volunteers and operates on Mondays and Tuesdays. Those interested in a NILS loan can contact the Pine Rivers Neighbourhood Centre on 3205 2955 or nils@prnc.org.a u
Further information about eligibility can be found at www.prnc.org.au .
No Interest Loan Scheme Case Study: Gina
Gina is a single mum who works part time and is on a single parenting payment from Centrelink. She always manages her small income very well. With an aim to move into the human services sector, she began studying a certificate in Community Services a couple of days per week, however with no computer and printer it made her studies increasingly difficult. She heard about the Pine Rivers No Interest Loan Scheme through her course coordinator. Despite her low income, her good money management skills meant she was an excellent candidate for a No Interest Loan. So after getting two quotes for a new laptop package and gathering documentation on her financial situation, she applied for the loan. The review committee were happy to approve her loan and within two weeks she was the owner of a new laptop. As the total cost of the laptop and printer was $1200 her repayments were only $30.77 per fortnight over 18 months and could be directly deducted from her Centrelink payments via the Centrepay facility.
