What is the No Interest Loan Scheme?
The No interest Loan Scheme (NILS) is an initiative run by Good Shepherd Australia, funded by the National Australia Bank (NAB), and supported by the Australian Government. It provides low-income Australians with interest-free loans, which can be used for specific purposes. The funds from these loans are paid directly to the relevant supplier or vendor.
The NILS provides loans up to $2,000 for essential goods and services, or $3,000 for rental bonds and natural disaster costs. They don’t charge interest or fees, meaning you only repay what you borrow. NILS loan repayments are typically between $30 and $40 a fortnight, according to Anglicare, and loans must be repaid within 24 months.
Who is eligible for a NILS loan?
To be eligible for a NILS loan you must:
- Have a Health Care or Pensioner Card, or earn less than $70,000 a year before tax ($100,000 for couples or people with dependants), or have experienced family or domestic violence in the last 10 years
- Have lived at your current address for at least three months
- Show that you can repay the loan.
Who isn’t eligible for a NILS loan?
You won’t be eligible for a NILS loan if:
- You have current loan repayments that are overdue, unpaid, or behind schedule.
- You’ve previously gotten a NILS loan and haven’t paid it back.
You can’t apply for a new NILS loan until you’ve paid back what you owe.
What can a NILS loan be used for?
- Household items like appliances, whitegoods, and furniture
- Some medical procedures and dental services
- Computers or laptops
- Phones, tablets, or other electronic devices (up to the $1,000 limit)
- Education essentials like school fees, books, and uniforms
- Car repairs or registration
- Some other items as requested
- Bond on a new rental property (up to the $3,000 limit)
- Costs associated with a natural disaster (up to the $3,000 limit).
What can’t a NILS loan be used for?
- Living expenses like food or going on a holiday
- Rent
- Council rates
- Utility bills like gas, electricity, or phone bills
- Removal or storage fees
- Second-hand or used baby items and electricals
- Repaying other debts, including debt consolidation and fines or penalties
- Paying third-parties during a private sale
NILS loans are not cash loans. If you’re approved for one, the NILS provider will generally pay the supplier for the good or service you need directly or give you a cheque addressed to the supplier.
How do I apply for a NILS loan?
If you’re eligible, contact your nearest NILS provider to arrange an appointment. You can view a list of providers on the Good Shepherd website or by calling 13 NILS (13 64 57).
At your appointment, you’ll need to provide your ID, details about your finances, information on any existing debts, and a quote or invoice for the item you’re planning to buy.
If you haven’t decided on the exact item you want to purchase, but have a rough amount you want to spend in mind, you may be eligible for pre-approval.
Can I get a NILS loan if I receive Centrelink payments?
As long as you meet the eligibility requirements, it shouldn’t matter whether or not you receive Centrelink payments.
Can I get a no-interest car loan?
In addition to their no-interest personal loans, Good Shepherd offers no-interest car loans of up to $5,000. Like the NILS, these loans are paid directly to the seller and your eligibility will depend on your income, expenses, debts, and other factors.
For the purposes of this loan, the vehicle you’re purchasing must be a car, scooter (not including e-scooters), motorcycle, or mobility scooter, and essential for your day-to-day life.
Can I get a NILS loan with bad credit?
There are no credit checks during the NILS application process. This means you won’t be refused a NILS loan if you have a bad credit history. The success of your application will instead depend on your income and expenses, the loan amount, and the repayment period you choose.
Having trouble paying bills?
If you’re struggling to pay bills and aren’t confident in making the repayments on an NILS loan, there are other options to help you get on top of your expenses. You might want to speak to a free, independent financial counsellor for help. They can be contacted through the National Debt Helpline (NDH) on 1800 007 007.
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