July 18, 2019
Need to borrow money to make a big purchase?
When you are on a low income it can be very hard to access credit from a bank to buy expensive but necessary items like whitegoods or a computer that will make a big difference to your quality of life. In these situations it can be tempting to turn to other sources of credit like pay-day lenders or ‘rent to buy’ schemes. These loans are often easy to get but very hard to pay back due to the high interest rate. Some of these sources of credit can see customers pay around 40% interest during the life of a 3 year loan.
Fortunately there are some better options.
WA No Interest Loans (WA NILS) and StepUP (low interest loans) are two programs which lend people on a low income money to purchase things like computers, second hand cars or car repairs, whitegoods or even health related purchases such as mobility gophers.
If you have a Centrelink Healthcare Card, Pension Card or Veterans Affairs Card you may be eligible for a no interest loan up to $1,500. Note that these loans are for the purchase of essential household items and services only.
StepUP Loans are a low interest loan (5.99%) for people who have difficulty accessing credit from a bank. These loans are from $800 – $3000 and are only available from StepUP’s microfinance Workers.
Both organisations are operated by Anglicare WA as part of their Financial Inclusion team. Their staff are micro finance workers who will support people throughout the process of borrowing money. The StepUP team say they love working closely with clients to help them obtain and pay back their loans and that many clients feel very empowered and more confident about entering mainstream finance after they have worked with them.
Please visit their website which explains what items can be purchased with the loans and how to apply for one. https://www.wanils.com.au/