No Interest Loans

No Interest Loans (NILs) provide a way for people on low incomes to access credit for essential goods and services – with no interest or fees.

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No Interest Loans

The COVID-19 Emergency Financial Assistance page has information about other emergency assistance measures or changes due to the pandemic.

No Interest Loans (NILs) are delivered by Good Shepherd Australia New Zealand in partnership with local community organisations. NILs provide access to safe, fair and affordable credit to people on low incomes to purchase essential goods and services.

The flexible range of loan purposes can also be used to help people who have experienced family or domestic violence to be safe at home, move to safety or rebuild their lives.

There is no interest or fees charged on a No Interest Loan.  Ever.  So you only pay back what you have borrowed.  For example, if a fridge cost $800 all you would pay back is $800.

You can borrow up to $2,000 for the cost of essential goods and services. Repayments are set at an affordable amount over a period of up to 24 months. No credit check is required for this loan.

In addition to NILs for essential goods and services, NILs for Vehicles is also available for the purchase of a vehicle that is used for personal transport.

This page explains key information about each type of No Interest Loan, such as what it can be used for, who is eligible and how to apply.

At the bottom of this page is a frequently asked questions (FAQ) section about how NILs work. If you’re wondering how long the process will take, whether there will be a credit check to submit an application, or anything else, scroll to the bottom of the page.

No Interest Loans for essential goods and services

You can use NILs to:

NILs allows you to borrow up to $2,000 for the cost of essential goods and services including:

  • Household essentials: for example, a fridge or washing machine
  • Health and wellbeing: for example medical and dental costs
  • Education and employment: for example, school activities and uniforms
  • Housing: for example, house repairs and hot water tank
  • Vehicle and transport: for example, car repairs and registration.

You may be eligible to borrow up to $3,000 to pay for specific things such as:

  • Rent advance and bond (paid to a real estate agent, not a private landlord)
  • Rent arrears (if caused by exceptional circumstances such as hospitalisation)
  • Council rates
  • Utility bills (only if you have or are experiencing family and domestic violence)

 

You can’t use NILs to:

No Interest Loans are NOT for cash – the loan funds are paid directly to the store you bought the goods from; the service provider, the real estate agent, council or utility provider.


Repayments:

The loans are interest free, there are no fees, and repayments are set at an affordable amount over a period of up to 24 months.


Credit checks:

There are no credit checks required for this loan.


Eligibility

You may be eligible for NILs if you:

  • are 17 years or over;
  • are an Australian citizen, permanent resident, or hold a visa that expires after the loan term;
  • meet one of the low-income eligibility criteria below;
      • have a Centrelink healthcare or pension card; or
      • earn less than $70,000 a year (before tax) for singles; or
      • earn less than $100,000 a year (before tax) for couples or people with dependents; or
      • there is a no upper income threshold if you have experienced family and domestic violence (within the last 10 years).
  • you have lived at your current address for at least 3 months (however, this criteria can be waived under exceptional circumstances); and
  • you can, and are willing to, repay the loan within the timeframe required.

 

How to apply

  1. Find your local NILs provider

NILs are offered by more than 250 local community organisations in over 650 locations across Australia.

Find your local NILS provider and check your eligibility here

 

  1. Call your local NILs provider

Your local NILs provider will help you with your application and work out what you can afford to repay. It’s helpful if you have proof of ID and documents showing your finances.

NILs for Vehicles

You can use NILs for Vehicles to:

No Interest Loans (NILs) for Vehicles offers loans of $2,000 to $5,000 for people and families on low incomes to purchase an essential vehicle for day-to-day use including cars, scooters, mobility scooters, motorcycles and boats.

The vehicle being purchased must be road worthy and if it is a car, it must be registered.


You
 can’t use NILs for Vehicles to:

You cannot use this loan to purchase recreational bikes, boats or caravans.

Loans are NOT for cash.  Vehicles can be purchased from a dealer or through private sale however all money is paid directly to the person or business selling the vehicle.

You cannot use this loan to purchase a car or other type of vehicle from a family member.


Repayments:

The loans are interest free, there are no fees, and repayments are set at an affordable amount over a period of up to 48 months.


Credit checks:

A credit check IS required for this loan.

Applicants for this loan are encouraged to check their credit report before applying.  Find out how to Get your free credit report here.


Eligibility

You may be eligible for NILs for Vehicles if you:

  • are 17 years or over;
  • are an Australian citizen, permanent resident, or hold a visa that expires after the loan term;
  • meet one of the low-income eligibility criteria below;
      • have a Centrelink healthcare or pension card; or
      • earn less than $70,000 a year (before tax) for singles; or
      • earn less than $100,000 a year (before tax) for couples or people with dependants.
  • Have lived at your current address for at least 3 months; and
  • Show that you can, and are willing to, repay the loan within the timeframe required.


How to apply

  1. Find your local NILs for Vehicles provider.

NILs for Vehicles is offered by a limited number of accredited community organisations across Australia.

Find your local NILS for Vehicles provider and check your eligibility here

  1. Call your local NILs for Vehicles provider

Your local provider will help you with your application and work out what you can afford to repay. It’s helpful if you have proof of ID and documents showing your finances.

Emergency financial assistance

If you have no income and/or cannot afford basic necessities, there is help available. You can find your closest service on the Ask Izzy website. You can also call us at the National Debt Helpline on 1800 007 007 and we can give you the details.

For further information, see Emergency Assistance.

Speak to one of our financial counsellors

The National Debt Helpline does not provide NILs loans. However, it’s worth talking to a financial counsellor if you’re unsure whether a NILs loan is right for you.

Financial counsellors aren’t judgmental about your circumstances – they’re here to offer you free, confidential and independent advice and assistance.

To speak to a financial counsellor you can:

  • Call the National Debt Helpline on 1800 007 007 – open Weekdays from 9:30 am to 4:30 pm.
  • Use our live chat service by clicking the chat icon in the bottom right corner of your screen. Live chat is available 9:00 am to 8.00 pm weekdays. If you send a message outside these hours a financial counsellor will get back to you.
  • Make an appointment to see a financial counsellor in your local area – Find a local Financial Counsellor.

How do NILs work?

Will the loan be given to me in cash?

Loans are NOT for cash.

If your loan is approved, the NILs provider will pay the supplier of the item or service your loan is for directly.

Are there any charges?

There are no fees, charges or interest.

Will they check my credit history?

Your credit history is not checked when you apply for a standard No Interest Loan for essential goods or services.  A credit check is required for NILs for Vehicles.

How long will it take?

The assessment itself usually takes between 45 and 90 minutes.

Loan approvals can be as quick as the same day if you have provided all of the documentation needed, or it may take up to 2 weeks, depending on the provider.

Speak to your local provider about their time frames.

What else can NILs help me with?

As part of the application process, NILs providers will generally look at your overall finances and suggest other services that may assist you. For example, they may notice you are eligible for other assistance payments, or that you are paying more than you need in bank fees. They may even refer you to a service that will assist with the cost of the item or service you need.

What other options are available if I cannot get NILs?

If you aren’t eligible for a No Interest Loan, your provider will refer you to a financial counselling service or another community service that may assess you for other types of assistance.