NILS Loans: What are no interest loans?
The No Interest Loans Scheme (NILS) was established to provide low-income individuals and families with access to affordable credit.

The No Interest Loans Scheme (NILS) was established to provide low-income individuals and families with access to affordable credit.
KEY POINTS
- Getting a personal loan through the No Interest Loan Scheme doesn’t require a credit check.
- The NILS is income tested, so you may need to earn under a certain amount to be eligible.
- The amount you can borrow will depend on the purpose of your loan and your ability to make the repayments.
What is the No Interest Loan Scheme?
The No interest Loan Scheme (NILS) is a joint initiative between Good Shepherd Australia, nab bank and the Australian Government to provide low-income Australians with interest-free loans. These loans can only be used for specific purposes and the funds are paid directly to the supplier or vendor.
NILS provides loans up to $2,000 for essential goods and services, or $3,000 for rental bonds and natural disaster costs.. These loans have no interest, fees or charges, meaning you only repay what you borrow. The loan amount can be repaid over a maximum of 24 months. According to Anglicare, a typical fortnightly repayment is somewhere between $30-40.
Who is eligible for a no interest loan?
To be eligible for a NILS loan you must:
- Have a Health Care Card/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.
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What can no interest loans be used for?
According to the NILS website, you can use NILS loans for:
- Household items (i.e., appliances, whitegoods or furniture)
- Some medical procedures and dental services
- Computer or laptop
- Phone, tablet or other electronic device (up to $1,000 limit)
- Education essentials (i.e., fees, books or uniforms)
- Car repairs or registration
- Some other items as requested
- Bond on a new rental property (up to $3,000 limit)
- Natural disaster costs (up to $3,000 limit).
You can’t use NILS loans for:
- Food
- Rent
- Bills
- Cash
- Debts
NILS loans are not cash loans. If you’re approved for a loan, 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 no interest loan?
If you’re eligible for a no interest loan, the next step is to contact your nearest NILS provider to arrange an appointment. You can view a list of NILS 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.
There are no credit checks during the 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.
→ Related: Check your credit score for free
No Interest car loans
In addition to their no-interest personal loans, Good Shepherd offers no-interest vehicle loans up to $5000 dollars. Like the NILS, these loans are paid directly to the seller and your eligibility will depend on your income, expenses and debts, among 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 day-to-day use.
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 still options to get on top of your expenses. Ensuring your budget is up to date with our Budget Planner Calculator may help you track expenses.. You might also want to speak to a financial counsellor for help. You can get free financial counselling by calling the National Debt Helpline on 1800 007 007.
Cover image source: Geber86/Shutterstock.com
This article was reviewed by our Finance Editor Jessica Pridmore before it was updated, as part of our fact-checking process.

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