|
Good Shepherd Youth and Family Service and National Australia Bank today launched a new low-interest credit program designed specifically for people living on low incomes. Step Up Loan is a fixed rate, unsecured personal loan for amounts between $800 and $3000. The interest rate is set at 6.9% and is available for terms of up to three years. Alternative forms of unsecured finance for similar amounts are typically credit cards or credit offered outside of mainstream financial institutions at significantly higher rates. "Step Up Loan has been developed to assist financially disadvantaged individuals and families to purchase necessary household goods and services," said Michael Yore, Director, Good Shepherd Youth and Family Service. Step Up Loan is being trialled in Collingwood, St Albans and Hastings in Victoria, and in Bathurst and Winmalee in NSW. The National's Executive General Manager Financial Services Australia Ian MacDonald said "Good Shepherd Youth and Family Service asked us if we could develop a product that enabled people on low incomes to access affordable credit, and at the same time develop their credit rating. "We've worked collaboratively with Good Shepherd for over six months on Step Up Loan and it's an initiative we're very proud of," said Mr MacDonald. A key component of the Step Up program is that every client will be supported by a Micro-credit Worker, partially funded by the National, to mentor them through the term of the loan. "This is a break-even product for the bank but it will make a huge difference for people who would not otherwise have access to affordable credit for household necessities," said Mr MacDonald. "At Good Shepherd, we believe access to fair and reasonable credit is a matter of ensuring that the Australian principle of a 'fair go' becomes a reality. Step Up Loan is a real breakthrough in this area," said Mr Yore. Applications for Step Up Loans can only be made through Good Shepherd in Collingwood, St Albans and Hastings; through the Josephite Foundation in Bathurst; and through the Winmalee Neighbourhood House in Winmalee. Eligibility criteria include holding a Centrelink Health Care Card and being resident in a trial location for more than six months. Documents are required to confirm income, expenditure and identification and not all applications will be successful.
|
