NAB Microenterprise Loans - Frequently Asked Questions
- Am I eligible?
- What is a microenterprise?
- 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?
- Do I have to come into the branch?
- Do I have to be an existing NAB customer?
- What should I do first?
- I really need money now - can you help?
Am I eligible?
If you are unable to get a normal business loan through a bank and you have a sound business idea, you are likely to be eligible for a NAB Microenterprise Loan.
Eligibility varies depending on what partner you apply through, see the full list of partners for details.
What is a microenterprise?
We define microenterprises as basic business enterprises of five or fewer people. This includes an owner-operated business and businesses operated from home.
We provide a range of microfinance initiatives for financially excluded Australians, including the Microenterprise Loan, No Interest Loan Scheme (NILS®), StepUP Loans, StepUP Insurance, AddsUP Matched Savings Program and a range of concessional bank accounts. These programs are designed to provide small, safe and affordable loans to individuals and families who are excluded from mainstream finance.
Our microfinance programs are part of our goal to build strong, sustainable and more inclusive communities.
How much can I borrow?
The maximum value of a NAB Microenterprise Loan is $20,000. The minimum value of a loan is $500.
- The loans come with a 5.99% p.a. interest rate fixed for the period of the loan.
- 90 day access period is interest free.
- Loan repayments are monthly.
- Loan term depends on whether you pay more than the minimum monthly payment or make any extra payments, but may be up to 3 years.
There are no account-keeping fees. Fees apply for certain activities, such as purchases in foreign currencies or repeat statements.
Because liability for the loan sits with the individual and not the business, careful attention will be paid by NAB 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;
- the term of the loan which is up to 3 years;
- how often you pay a loan instalment. In the case of a NAB Microenterprise Loan this is monthly only.
There are no monthly account-keeping fees, although fees do apply for certain activities when using the account. The interest rate on a NAB Microenterprise Loan is 5.99% p.a. (fixed). Your minimum monthly payment is calculated as 3% of the credit limit agreed between you and your banker.
This table gives you a guide of what you would pay monthly with a 5.99% p.a. interest rate.
| Loan Term (3 years) | Loan Amount | |||
|---|---|---|---|---|
| $5000 | $10,000 | $15,000 | $20,000 | |
| Monthly Repayment | $150 | $300 | $450 | $600 |
This table shows what you will pay in total, if you make only the minimum payment every month. This is the loan amount plus all interest over the life of the loan with a 5.99% p.a. interest rate, but without any extra fees included.
By making more than the minimum monthly payment, or by paying off extra amounts (which can be done at any time without penalty) you may be able to reduce these amounts.
| Loan Amount | ||||
|---|---|---|---|---|
| $5000 | $10,000 | $15,000 | $20,000 | |
| Total payment (over 3 Years) | $5841.73 | $11,683.46 | $17,525.19 | $23,366.92 |
What if I have a poor credit history or some bad debts?
You may still qualify for a NAB Microenterprise Loan. The amount of outstanding debt will need to be less than $500 and you will have to arrange to repay the outstanding debt.
If you are unsure whether you have any outstanding debts on your credit history you can apply to obtain a free credit history report from mycreditfile.com.au.
What can I borrow money for?
NAB Microenterprise Loans can be used for:
- plant and equipment;
- leases;
- furniture and fixtures; and
- working capital.
This list is not exhaustive. Loans are not limited to one item. However, NAB Microenterprise Loans are not for consolidation of any debt. If you need to access a portion of the loan in cash or bank cheque due to being unable to purchase certain items by credit card this can be done at the discretion of your banker.
Do I have to come into the branch?
Yes. Working closely with your NAB business banker will be central to the success of your business. You must attend an assessment interview with a business banker and if successful, go through the loan approval process.
Do I have to be an existing NAB customer?
No. If you are not a NAB customer you will need to complete a 100 point identity check. This means you must provide the following ID items to reach a minimum of 100 points:
- Birth certificate (70 points)
- Drivers licence (70 points)
- Electricity, gas or water bill (30 points)
- Medicare Card (30 points)
What should I do first?
Assess your eligibility against each of the partners eligibility criteria. See the 'Am I eligible' question at the top of this page.
I really need money now - can you help?
The NAB Microenterprise Loan is not an overnight process and can take up to four weeks. In particular, NAB wants to make sure that it does not put you in a worse position and that you have the necessary finance and support you need to be successful.
With this in mind, how quickly you can be approved for a loan depends on your level of business readiness.
NAB defines business readiness as, having the necessary skills, training or experience needed to make your business a success and a robust business plan that meets NAB's minimum requirements for a business plan (document below).
