Good Shepherd Youth and Family Service

Microfinance Microfinance ProgramsPrograms

No Interest Loans Scheme (NILS)No Interest Loans Scheme (NILS)

Philosophy that underpins the work of Good Philosophy that underpins the work of Good Shepherd Youth and Family Service is based on Shepherd Youth and Family Service is based on social justice principlessocial justice principles

NILS offer a viable alternative for people who NILS offer a viable alternative for people who face barriers in gaining access to small amounts face barriers in gaining access to small amounts of credit on fair and reasonable terms for the of credit on fair and reasonable terms for the purchase of basic and essential household purchase of basic and essential household goods.goods.

Good Shepherd Youth and Family Service have Good Shepherd Youth and Family Service have offered NILS for 25 yearsoffered NILS for 25 years

NILS cont…NILS cont…

NILS are small loans up to $800 for the NILS are small loans up to $800 for the purchase of household goodspurchase of household goods

Loans are repaid over a period of up to 2 yearsLoans are repaid over a period of up to 2 years Eligibility criteria:Eligibility criteria:

Health Care Card or Pension CardHealth Care Card or Pension Card Residential stability (more than 6 months at current Residential stability (more than 6 months at current

address)address) Reside in postcode area around Good Shepherd sitesReside in postcode area around Good Shepherd sites Capacity and willingness to repay loanCapacity and willingness to repay loan

NILS StatisticsNILS Statistics

58% of loans are for refrigerators and 58% of loans are for refrigerators and washing machineswashing machines

60% of loan recipients are in the 25 – 45 60% of loan recipients are in the 25 – 45 age groupage group

75% of borrowers are female75% of borrowers are female 47% of borrowers are single parents47% of borrowers are single parents 97% repayment rate on loans97% repayment rate on loans

National NILS National NILS

Good Shepherd Youth and Family Service Good Shepherd Youth and Family Service coordinates the Victorian and National coordinates the Victorian and National NILS Network of more than 245 NILS NILS Network of more than 245 NILS providers in every state and territory in providers in every state and territory in Australia – the largest microcredit network Australia – the largest microcredit network in Australiain Australia

National NILS Statistics 2004National NILS Statistics 2004

4,500 loans4,500 loans Over $3 million in loansOver $3 million in loans 245 points of contact to access a NILS 245 points of contact to access a NILS

loan in Australialoan in Australia 98% repayment rate on loans98% repayment rate on loans

Other Good Shepherd Microfinance Other Good Shepherd Microfinance servicesservices

Good Shepherd Buying ServiceGood Shepherd Buying Service

Free statewide telephone service that Free statewide telephone service that assists people on low incomes to assists people on low incomes to purchase new essential household items purchase new essential household items and medical appliances by negotiating and medical appliances by negotiating discount prices with a network of traders.discount prices with a network of traders.

Good Shepherd Buying Service Good Shepherd Buying Service Statistics 2005Statistics 2005

Total number of enquiries Total number of enquiries 1,9161,916 Total number of salesTotal number of sales 692 692 Total retail valueTotal retail value $585,856 $585,856 Total sales valueTotal sales value $456,956 $456,956 Total savings valueTotal savings value $128,900 $128,900 Average savings to consumersAverage savings to consumers 22% 22%

StepUP LoanStepUP Loan

Good Shepherd and National Australia Good Shepherd and National Australia Bank have developed a low interest loan Bank have developed a low interest loan in partnershipin partnership

This loan aims to fill the gap between a This loan aims to fill the gap between a NILS and mainstream creditNILS and mainstream credit

2 year pilot available in Victoria: 2 year pilot available in Victoria: Mornington Peninsula, Collingwood, St. Mornington Peninsula, Collingwood, St. Albans and NSW: Winmalee and BathurstAlbans and NSW: Winmalee and Bathurst

StepUP Loan …StepUP Loan …

Eligibility criteria:Eligibility criteria: Health Care Card or Pension CardHealth Care Card or Pension Card Stable housing (>6 months)Stable housing (>6 months) Live in geographic location around pilot Live in geographic location around pilot

sitessites Capacity to repay loan (NAB loan Capacity to repay loan (NAB loan

assessment applies)assessment applies)

StepUP Loan…StepUP Loan…

Loan product:Loan product: 7.15% pa (fixed for term of loan)7.15% pa (fixed for term of loan) Loans from $800 - $3,000Loans from $800 - $3,000 Flexible repayments between 6 and 36 Flexible repayments between 6 and 36

monthsmonths Weekly, fortnightly or monthly repayment Weekly, fortnightly or monthly repayment

optionsoptions

StepUP LoanStepUP Loan

Loan purposes have varied and most Loan purposes have varied and most loans have been used to purchase a loans have been used to purchase a second hand car, and household itemssecond hand car, and household items

All loans are currently being repaid and no All loans are currently being repaid and no arrears to datearrears to date

Better Energy Appliance Loan Better Energy Appliance Loan ProgramProgram

Good Shepherd and Origin Energy have formed Good Shepherd and Origin Energy have formed a partnership to develop a NILS for the purchase a partnership to develop a NILS for the purchase of high, energy efficient appliancesof high, energy efficient appliances

One year pilot offered in numerous local One year pilot offered in numerous local government areas in Victoriagovernment areas in Victoria

A catalogue of 3 – 4 star appliances is available A catalogue of 3 – 4 star appliances is available to consumersto consumers

Energy efficiency workshops are planned for Energy efficiency workshops are planned for DecemberDecember

Better Energy Appliance Loan Better Energy Appliance Loan Program…Program…

Eligibility criteria:Eligibility criteria: Health Care Card, Pension Card, and/or Health Care Card, Pension Card, and/or

Family Tax Benefit Part AFamily Tax Benefit Part A Stable housing (> 6 months)Stable housing (> 6 months) Reside in locations around pilot sitesReside in locations around pilot sites Do not have capacity to purchase high Do not have capacity to purchase high

energy efficient appliance energy efficient appliance Willingness and capacity to repay loanWillingness and capacity to repay loan

Good Shepherd Youth and Family Good Shepherd Youth and Family Service Service

For further information on any of the Good For further information on any of the Good Shepherd Microfinance services please Shepherd Microfinance services please contact:contact:

Colette McInerneyColette McInerney

Microfinance ManagerMicrofinance Manager

Phone: 03 9419 5477Phone: 03 9419 5477

Email: microcredit@infoxchange.net.auEmail: microcredit@infoxchange.net.au