Fact Sheet: A hand-up not a hand-out

NAB supports a range of innovative programs to help low-income Australians access fair and affordable financial services. Since 2003, NAB has committed over $130 million to microfinance, taking a leadership position to support and develop respectful products that meet the needs of people living on low incomes, financially marginalised from mainstream banking.

These programs, delivered in partnership with community and government sectors, are internationally unique for developed economies and NAB has been recognised with five Money Magazine Best of Best Awards for socially responsible products. Three of the four microfinance programs that NAB supports are delivered in partnership with Good Shepherd Youth & Family Service. For more information visit our microfinance page.

Program NAB funding to community sector delivers… Federal Govt funding of $18.5 M will:

No Interest Loan Scheme (NILS®)

For nearly 30 years, this community-based program developed and managed by Good Shepherd Youth & Family Service has provided small loans at no interest for the purchase of essential goods and services (between $800 and $1,200). Over 300 community agencies are involved in the delivery of this program across the country.

  • Access to $15 million in NAB loan capital to fund small, no-interest loans for essential household goods. This covers default costs under the program.
  • So far this year, 87 new NAB-funded NILS schemes were launched, providing 4,399 additional loans totalling approx $3.5 million. By 2012 it is anticipated that over 200 schemes will have accessed NAB capital
  • Funding for the National NILS forum and six microfinance positions
  • Ongoing account management for NAB capital.
  • Provide operational grants to existing NILS programs. This will increase their capacity to access NAB loan capital and provide loans.
  • Combined with the existing NAB funding, it is estimated that 14,000 loans will be written per year. This is more than a doubling of existing loan numbers.
  • Create two new accreditation officer positions to support community groups seeking NILS accreditation and to ensure that the integrity of the program is maintained.

StepUP Loans

Launched in 2004 and developed by NAB and Good Shepherd Youth & Family Service, StepUp is a bridge between NILS and mainstream credit to provide small loans of up to $3,000 at an interest rate of 3.99%. Loans are typically used to purchase or repair second-hand cars.

  • Ongoing loan capital funding - since launch, the program has lent over $4.6 million, approving over 1380 loans and hosting over 12,000 financial conversations.
  • Funding for 23 existing microfinance workers.
  • Marketing materials, resources for dedicated loans processing and collections and development and delivery of biannual training
  • Coverage of program default costs.
  • 70% increase in total loan numbers as well as an additional 12,000 face to face conversations to help develop financial capability.
  • Fund 22 new roles across new locations.
  • Support of program coordination.
  • Access to Centrepay services.

AddsUP Savings Plan

Launched in 2009, NAB developed AddsUp to give people an incentive to save. Once in the lifetime of the account, NAB matches account balances to a total annual value of $500. AddsUP is offered via NAB’s NILS and StepUP community partners. In May 2009, the program was launched in Queensland and Victoria.

  • NAB has committed to expanding this scheme up to 50 locations in Australia.
  • Funds matching resources across 50 programs.
  • Provides personal bankers to support people when opening their account.
  • Over 3000 consumers are provided with access to the scheme.
  • Expand the program reach to an additional 50 locations.
  • Access to Centrepay services.

NAB also works with a range of business training providers to source and fund small and start-up businesses via its Micro-enterprise Loans program. Launched in 2007, NAB provides not–for-profit business loans to people with few or no avenues to access affordable credit. Applicants are sourced by business literacy training providers who also provide mentoring in the first twelve months of the loan. To date, over 211 micro-enterprises have received unsecured business loans of between $500 and $20,000.

®The NILS trademark is registered to Good Shepherd Youth & Family Service (No 766836)