Step UP Loans

Repaying a Step UP low interest loan establishes a credit rating and an entry into the mainstream credit system. Recipients are 'mentored' by a microcredit worker throughout the loan process and repayment period.  

National Australia Bank and Good Shepherd Youth & Family Service, have launched report a into the Step UP loan program, titled A step in the right direction? A report into the Step UP Loan Program, 2004-2007  which details key learnings from the program since it was originally launched in October 2004.  A media release about the report is also available.

Now available: Low cost Step UP Insurance for Step UP Loan customers. Find out more.

Step UP Loans are Money magazine's Best Socially Responsible Product for the second year running. The magazine's Best of the Best Awards 2008 were announced on December 4, 2007. Read more.

Am I eligible for a Step UP Loan?
How much can I borrow?
How much will I pay?
What if I have a poor credit history or some bad debts?
What can I borrow money for?
Where are these loans offered?
Do I have to come into the branch?
Do I have to be an existing NAB customer?
Are the loans offered through a NAB branch?
What are my next steps?
What will a microcredit worker ask me?

Am I eligible for a Step UP Loan?

Step UP Loans are available for individuals or families.  You need to live in eligible locations in New South Wales, Victoria, Western Australia and South Australia.

The individual or family must also:

- hold a current Centrelink Healthcare Card or Pension Card or are eligible to receive Family Tax Benefit Part A;
- have lived at their current address for more than six months.

You may still be eligible for a Step UP Loan if you:

- have a poor credit history;
- hold an existing loan or mortgage but are currently unable to access normal bank loans because of a change in circumstance;
- are over 70 years of age.

How much can I borrow?

The maximum value of a Step UP Loan is $3000.  The minimum value of a loan is $800. 

- The loans come with a 7.24% p.a. (comparison rate 7.24% p.a.)* interest rate fixed for the period of the loan. 
- Loans may be taken out for six months to three years. 
- There are no  fees.
- Loan repayments can be made weekly, fortnightly or monthly.

Careful attention is paid to make sure a customer has the ability to repay a loan and not over extend their weekly budget.

How much will I pay?

This will depend on:

- how much you borrow;
- how often you pay a loan instalment (eg weekly, fortnightly or monthly);
- the term of the loan – which will be between six months and three years.

There are no fees. The interest rate on a Step UP Loan is 7.24% p.a. (comparison rate 7.24% p.a.)*.

The loan terms and repayments are worked out between the customer and the microcredit worker.

The following table will give you a guide as to what you would pay every fortnight if you elected to make fortnightly payments, and with a 7.24% p.a. interest rate  (comparison rate 7.24% p.a.).*

This table shows what you will pay in total.  This is the loan amount plus all interest over the life of the loan with a 7.24% p.a. interest rate (comparison rate 7.24% p.a.)*.

You may also like to try our loan calculator to get an accurate amount of how much a Step UP Loan will cost you.

What if I have a poor credit history or some bad debts?

You may still qualify for a Step UP Loan, so please contact a microcredit worker at an eligible location  near you. 

The amount of outstanding debt will need to be less than $500 and you will have to arrange to repay the outstanding debt. The microcredit worker at your location will be able to help you identify any debt that may sit with an external credit checking agency. They will also be able to provide advice on how to repay outstanding debt.

What can I borrow money for?

Step UP Loans can be used for:

• furniture;
• storage costs (one off);
• house maintenance and repairs;
• medical and dental expenses ;
• second hand cars (plus on-costs including rego, stamp duty, roadworthy certificate for the first year);
• car repairs;
• airfares (for refugee family reunion in Australia);
• computers; and
• vocational educational costs.

This loan list is not exhaustive.  Loans are not limited to one item.
 
Step UP Loans are NOT for:

- consolidation of any debt;
- fines (including drink driving or rehabilitation training);
- Christmas expenses;
- bills;
- holidays; or
- cash.

Where are these loans offered?

You must live in one of the following areas:

South Australia

Western Australia

New South Wales

Victoria

Do I have to come into the branch?

Your first appointment will be with a microcredit worker at one of the above locations. The purpose of this meeting is to:
- talk about your weekly expenditure and determine whether a Step UP Loan is right for you;
- complete a loan application form.

The loan application will take about five working days to assess by NAB.  Documents for an approved loan will be sent to a NAB branch of your choice.

Do I have to be an existing NAB customer?

No.  However if accept a Step UP Loan and you are not a NAB customer you will need to complete a 100 point identity check.  This requires you to bring along evidence of the following (enough ID is required to reach a minimum of 100 points):
- Birth certificate (70 points)
- Drivers licence (70 points)
- Electricity / gas / water bill (30 points)
- Medicare Card (30 points)

Are the loans offered through a NAB branch?

No. You first need to contact a Microcredit worker at one of the loan locations.

What are my next steps?

If you meet the eligibility criteria and you are near one of the loan locations, contact a Microcredit worker to discuss your situation.

Click here for a list of Microcredit worker contacts.

If you are making a joint loan application, both parties will need to attend the interview with the Microcredit worker.
If you are unsure if you meet the eligibility criteria, or you are unsure if you can afford a loan, your first point of contact should be a Microcredit worker at one of the loan locations.

What will a Microcredit worker ask me?

When you call a Microcredit worker they are likely to ask you:

- what you would like the loan for;
- what type of income you receive;
- details of your housing arrangements (eg rent / own / with dependents).

An appointment will be made to come in and see the Microcredit worker. 
If you are making a joint loan application, both parties will need to attend the interview with the microcredit worker.
At the appointment you will need to bring in some documentation, where you have it available.
Please discuss this with the Microcredit worker.  It could include:

- Health Care Card, Pensioner Card or your latest Income Assessment Notice from the Australian Tax Office
- Statement of benefit from Centrelink.  This must be less than two weeks old
- Last two payslips from any casual or part time work
- Documents that show your length of stay at your current accommodation (eg a lease)
- Your recent bills, eg telephone, gas and electricity
- Copies of recent savings / cheque account statements, loan statements, credit card statements and any other outstanding accounts

Don’t be put off by this list! The appointment is designed to be easy and casual.

Links
Download the Step UP Loans brochure
Interview checklist - English Version
Interview checklist - Arabic Version
Interview checklist - Dinka Version

* Comparison rates are based on a loan of $2500 over a term of 2 years.  A comparison rate schedule is available from the community microcredit worker when you go for an interview.

WARNING:  This comparison rate is true only for the examples given and may not include all fees and charges.  Different terms, fees or other loan amounts might result in a different comparison rate.