Safe, Fair and Affordable Finance
24th of November, 2016
Many people who experience family violence also experience ‘financial exclusion’ – the lack of access to banking and credit services. For people on low incomes, financial exclusion is considered to be a major factor in causing ongoing poverty.
With Christmas soon upon us, and a new school year soon after, the next few months will be a time of real concern and worry for many people on low incomes. This year we will be able to do more than ever to support people become more financially independent and improve their wellbeing, as we are now able to extend the benefit of no and low interest credit to more people.
The No Interest Loan Scheme (NILS) we began offering in 2014, in partnership with the Good Shepherd NZ and Kiwibank, is now providing access to safe, fair and affordable credit of $1,000 – 2,000 to many more Cantabrians on a low income. Until recently this service was only available to clients of Aviva, or a limited number of referring partner agencies, but now, as long as people meet the criteria, NILS can accept self-referrals.
Further great news is that Aviva can now offer StepUP, a low fixed-interest loan service with no fees, offered in partnership with the Good Shepherd NZ, BNZ and Ministry of Social Development. People who meet the criteria can borrow up to $5,000 and there are no hidden charges and. Again, you can self-refer.
Affordable credit made a big difference to Shona’s life. Shona is in her late 50’s and has a number of medical issues, including epilepsy. Unexpected things had come up, such as dental issues and a broken fridge, and life was financially difficult at the time. “I tried to go to WINZ for support (with getting a new fridge) but they had recently helped with dental expenses” she says. “People suggested I go to DTR (a rental company) but the interest rates were too high. I was unwell during this time which made things even more difficult.”
In talking over options with the Salvation Army, Shona learned about Aviva and the No Interest Loan Scheme we offered. “I knew what I needed to take to the meeting, and I prepared everything I needed. Jeff from the Salvation Army worked with Kendall (from Aviva) to help things go smoothly.”
The process was quick and easy for Shona. “We all worked together; it felt relaxed and calm. Kendall was wonderful, and it only took a week for the money to come through. Aviva took away the worry and stress; you don’t have to go through lots of red tape, and they don’t make you wait. I give them top marks.”
“If there are any issues (around meeting weekly payments), I can contact Kendall and sort it out quickly. It’s not hard to make the repayments; I chose the rate, and $20 per week is really manageable.”
Shona is so positive about her experience that she has been spreading the word about NILS, taking some of Kendall’s business cards to distribute amongst the community to let more people know about the service. “It’s my way of giving back” she says.
People don’t have to be experiencing family violence to be eligible to apply for NILS or StepUP. If you or someone you know might benefit from a no or low interest loan, please visit our microfinance page to learn more about eligibility criteria and what loans can be used for.
