NAB to act on study into affordable microenterprise

National Australia Bank has begun developing a specialised product to deliver affordable
small loans to financially disadvantaged microenterprises. This announcement follows
the release today of a NAB-sponsored study exploring how finance of up to $20,000 can
help establish or develop small business enterprises that would otherwise have little or
no chance to thrive.

NAB Chief Executive Officer Australia, Mr Ahmed Fahour said: “We are passionate about
supporting financially vulnerable Australians who have great business ideas. This is not
just about meeting a social responsibility – it is about NAB wanting to help Australians
fulfil their aspirations. Access to safe, affordable credit should not be a stumbling block.
“While we build the product we are looking for appropriate pilot locations and business
literacy programs with a view to launching the loans early in 2007.”

Conducted by The Boston Consulting Group on a pro bono basis, the study, Establishing
a Microenterprise Development and Loans Program in Australia, estimates that between
6,000 and 12,000 potential new micro-businesses require funding each year but are
unable to obtain it from mainstream lenders.

The report profiles local and international experience with providing loans to people on
low incomes and with few assets who may have great business ideas but limited options
when it comes to accessing affordable credit.

“For people who struggle to meet standard bank lending hurdles, microenterprise loans
can provide an opportunity for them to realise their aspirations – not only for themselves,
but their families and in some instances their communities,” Mr Fahour said.

“This is a natural progression for NAB, building on our support for low-income householders
through our flagship StepUP loan program developed with the Good Shepherd Youth and
Family Service and our support for No Interest Loan Schemes (NILS®).

In April, NAB committed $30 million over three years to delivering small, affordable loans
– microfinance – to people who are unable to access credit from mainstream financial
services companies.

For further media information, please contact:
Geoff Lynch
Head of Media Relations Australia
National Australia Bank
T (03) 8634 1564
M 0405 319 819