Living on a low income can make it hard to pay for the bigger expenses life throws at us. A fridge or washing machine breaking down, car needing new tyres or purchasing a computer or tablet for your kids’ school are huge stresses when you don’t have much spare after paying for housing, food and utilities.
Credit cards, pay-day loans and rent-to-buy can seem like good options, but fees, interests and hidden costs mean you can end up paying much more than you borrowed.
The No Interest Loans Scheme (NILS ®) provides individuals and families on low incomes with access to safe, fair and affordable credit.
Loans are available for essential goods and services up to $2,000. Repayments are set at an affordable amount over 12 to 24 months and are deducted directly from your Centrelink benefit.
NILS in a Nutshell
It’s a hand up, not a hand out. NILS® loans are small and completely free of interest and fees.
They are designed to help people and families purchase household essentials, health & well being, education & employment, vehicle & transport.
Not a pay day loan, not a bank loan
NILS® works through a process called ‘circular community credit’. This means when a borrower makes a repayment to NILS®, the funds are then available to someone else in the community. It is worth considering a NILS® loan first before seeking other expensive options for credit.
Trust and respect
Your credit history won’t have an impact on your ability to get a loan. There are no credit checks as this program is based on trust and respect.
How do I apply for a loan?
Call the NILS® team on 03 5561 8888 to discuss your needs.
Provide the following documents to our team:
- 2 forms of identification e.g. Drivers Licence, Your Health Care Card, Pension Card, Low Income Card, Medicare Card or Department of Veterans’ Affairs Card
- Bank statements for the past three months of ALL bank accounts in your name
- Proof you have lived in your current home for at least three months or lived at previous address for 6 months (proof required). For example if you rent, please provide a lease. If you own your own home, provide a local council rate’s notice or if you are boarding please complete a Statutory Declaration
- Your latest Centrelink Income Statement. If you have trouble accessing this, ask us and we can help you
- A copy of your latest electricity and gas bill
Get a quote for the item you need. We’ll need to know the details of the item, including the price and who you will be buying from.
A face to face appointment or telephone appointment will be made with you to run through the application.
Once the application is processed you will be contacted with the outcome of your loan within 48 hours.
Frequently Asked Questions
Am I eligible?
To be eligible for a NILS® Loan you must have a Health Care Card / Pension Card or earn less than $75,000 gross for singles or $100,000 for couples or people with dependants, have lived at your current least 3 months and can show that you have capacity to repay the loan.
What can I use a loan for?
Loans are available for the purchase of essential goods and services.
These may include:
- Household items like fridges, washing machines, TVs and furniture
- Medical procedures and dental services
- Technology like a phone, tablet and other small electronic devices (up to $1000 limit)
- Education essentials such as computers and textbooks
- Car repairs or registration
You can’t use a loan for food, rent, bills, cash or debts.
If you are in need of assistance with these visit https://www.dss.gov.au/our-responsibilities/communities-and-vulnerable-people/programs-services/emergency-relief to find the nearest emergency relief provider.
What happens during my appointment?
Your appointment is nothing to be nervous about. Think of it more like a friendly chat either over the phone or face to face at our office. The loan application will take approximately 30 minutes once we have all the documentation.
What happens after my appointment?
Once you have completed your appointment and submitted an application, you will be contacted about the outcome within 48 hours. If your loan application is successful, the items (or service) are purchased directly from the supplier.
Loan repayments, starting from as low as $20 a fortnight can be deducted directly from your Centrelink benefit for a 12-24 month period.