No-rate loans for city’s poor

Andrew Mathieson
GEELONG’S low-income earners and battling pensioners will have access to interest-free loans under a charity-backed scheme.
St Vincent de Paul committee of management representative Peter Patterson said loans of up to $1000 to buy “bare essentials” would be available to health care card holders.
A repayment plan over 12 to 18 months could cost as little as $10 a week, he said.
Mr Patterson expected the No Interest Loan Scheme (NILS) to ease the burden on many struggling households.
“A lot of people we’re going to lend to would never get credit off anyone else,” he said.
Mr Patterson said the interest-free loans would be available from February.
Mr Patterson, a retired banker with 40 years experience, said interest rates of up to 30 per cent from commercial providers were hitting families hard.
“You can’t put too much stress on people on welfare payments,” he said.
St Vincent de Paul and other Geelong charities Salvation Army, Uniting Care, Anglicare and Good Shepherd Youth and Family Service have been given $150,000 from National Australia Bank for the scheme.
Mr Patterson expected the loans to be “a self-sufficient pool of money”.
“Within the few months of the first loans going out we can re-lend the money coming back in,” he said.
“We’re not charged interest from the bank”.
Mr Patterson said a default rate of less than 10 per cent could give the scheme access to more funds from the bank.
The scheme needed volunteers to help administer the loans.Mr Patterson said loan assessors would need training but other volunteers would be required to work in the office.
“They just need to have an empathy for people in less-fortunate circumstances”.
Mr Patterson said an information night for volunteers will run at the Hibernian room, in St Mary’s parish centre, on Thursday.