No Interest Loan Scheme

The No Interest Loan Scheme (NILS) provides a way to access money to help you get on your feet – with no interest or fees.

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No Interest Loan Scheme

This page contains information about No Interest Loans. There are No Interest Loans for essential goods and services, No Interest Loans for vehicles, No Interest Loans for women affected by family and domestic violence and Household Relief Loans for people affected by COVID.

The COVID-19 Emergency Financial Assistance page has information about other emergency assistance measures or changes due to the pandemic.

The No Interest Loan Scheme (NILS) provides safe, fair and affordable credit to people on low incomes. There are no fees or interest payments required. The scheme offers loans for essential goods and services, that cost between $300 and $1,500. Repayments are set at an affordable amount over 12 to 18 months. No credit check is required for this loan.

In addition to standard No Interest Loans for essential goods and services, other types of No Interest Loans are also available.

  • No Interest Loans for vehicles are available for the purchase of a vehicle that is used for personal transport.
  • Household Relief Loans Without Interest are available for people affected by the COVID pandemic.
  • No Interest Loans for women affected by family and domestic violence are available to help women who have experienced, or are experiencing, family and domestic violence to move to safety, stay at home securely, and rebuild their lives.

This page explains key information about each type of No Interest Loan, such as what it can be used for, who is eligible and how to apply.

There’s also a frequently asked questions (FAQ) section about how NILS works. If you’re wondering how long the process will take, whether there will be a credit check to submit an application, or anything else, scroll to the bottom of the page.

Standard No Interest Loans

If you have an income from Centrelink, or are on a low income, the No Interest Loan Scheme (NILS) provides you with access to safe, fair and affordable credit. The scheme offers loans for essential goods and services of between $300 and $1,500. Repayments are set at an affordable amount over 12 to 18 months.

You can use NILS to:

  • buy essential household items such as white goods (fridges and washing machines), computers or furniture
  • pay for health-care items such as wheelchairs or asthma pumps
  • educational necessities such as computers and textbooks
  • some medical and dental services
  • pay for car repairs

You can’t use NILS to:

  • get cash
  • pay debt consolidation loans
  • pay rent arrears
  • pay bills
  • go on holidays

The loans are interest free, there are no fees, and repayments are arranged over 12 to 18 months.  No credit check is required for this loan.

Note:  The loan funds are paid directly to the store, where the goods are being purchased, or the service provider.

Eligibility

To be eligible for NILS, you must:

  • have a Centrelink health-care or pension card or earn less than $45,000 a year (after tax) for singles or $60,000 a year (after tax) for couples or people with dependents; and
  • have lived at your current address for at least 3 months; and
  • show that you can and are willing to repay the loan within 12 or 18 months

How to apply

1. Find your local NILS provider

NILS is offered by more than 250 local community organisations in over 650 locations across Australia.

Find your local NILS provider and check your eligibility here

2. Call your local NILS provider

Your local provider will help you with your application and work out what you can afford to repay. It’s helpful if you have proof of ID and documents showing your finances. Watch this one-minute video by Good Shepherd Microfinances for an overview of how to apply.

NILS for vehicles

No Interest Loans (NILS) for vehicles offers loans of $2,000 to $5,000 for people and families on low incomes to purchase an essential vehicle for day-to-day use including cars, scooters, mobility scooters, motorcycles and boats.  Loan repayments are set at an affordable amount over 48 months.  A credit check is required for this loan.

Applicants for this loan are encouraged to check their credit report before applying.  Find out how to Get your free credit report here.

You cannot use this loan to purchase recreational bikes, boats or caravans.  The vehicle being purchased must be road worthy and if it is a car, it must be registered.

Loans are not for cash.  Vehicles can be purchased from a dealer or through private sale however all money is paid directly to the person or business selling the vehicle.


Eligibility

To be eligible for NILS for Vehicles, you must:

  • have a Centrelink health-care or pension card or earn less than $45,000 a year (after tax) for singles or $60,000 a year (after tax) for couples or people with dependents; and
  • have lived at your current address for at least 3 months; and
  • show that you can and are willing to repay the loan within 48 months


How to apply

  1. Find your local NILS for Vehicles provider

NILS for Vehicles is offered by a limited number of community organisations across Australia.

Find your local NILS for Vehicles provider and check your eligibility here

  1. Call your local NILS for Vehicles provider

Your local provider will help you with your application and work out what you can afford to repay. It’s helpful if you have proof of ID and documents showing your finances.

Household Relief Loans Without Interest

Household Relief Loans Without Interest are now available for people impacted by COVID-19.

Loans are available for amounts between $300 and up to $3,000. The loan is repayable over 24 months. Loan repayments are made by direct debit or through Centrepay. There is no interest, fees or other costs. There are no credit checks in the application or approval process for this loan.

Loans are not for cash – they are to pay rent or a rental bond (to a real estate agent, not a private landlord), utility bills, body corporate fees and council rates.

To be eligible for a Household Relief Loan without interest people must be:

  • Aged 16 years or over
  • An Australian citizen, permanent resident, or hold a valid visa that expires after the loan term
  • Have a before tax annual income of less than $60,000 if single, or less than $100,000 for couples or people with dependents
  • Have lost their job, had income reduced, moved onto Centrelink payments after February 2020 or been otherwise financially impacted by COVID-19
  • Have reduced income if they’re self-employed

You can check your eligibility and find out more here

No Interest Loans for women affected by family and domestic violence (FDV NILS)

No Interest Loans are available to help women who have experienced or are experiencing family or domestic violence to move to safety, stay at home securely, and rebuild their lives after family and domestic violence.

Loans of up to $2,000 are available.  The loan is repayable over 24 months via direct debit or Centrepay and there is no interest, fees or other costs. There are no credit checks required to apply for this loan.

Loans are not for cash – they are available to pay for specific things such as rent or a rental bond, utility bills, security items, removalist and transport costs, furniture and whitegoods, legal costs, car registration and repairs, and technology e.g., laptop, phone.

You may be eligible for a Family and Domestic Violence Loan without interest (FDV NILS) if you:

  • Are a woman who has experienced family or domestic violence in the past 10 years;
  • Are aged 18 years or older;
  • Are an Australian citizen, permanent resident, or hold a valid visa for the duration of the loan; and
  • Can show you have a source of income to make loan repayments.

Loans are available for:

–    Bond and rent                                                   –    Security items
–    Removalist and transport costs             –    Furniture and whitegoods
–    Legal costs                                                          –    Car registration and repairs
–    Technology e.g. laptop, phone                –    Medical and dental
–    Education and training costs                  –    Employment tools/equipment
–    Utilities                                                                –    Pet costs

Please note: Loans are not for cash, debt consolidation, or car purchases.

 To check your eligibility and find out more here.

Emergency financial assistance

If you have no income and/or cannot afford basic necessities, there is help available. You can find your closest service on the Ask Izzy website. You can also call us at the National Debt Helpline on 1800 007 007 and we can give you the details.

For further information, see Emergency Assistance.

Speak to one of our financial counsellors

The National Debt Helpline does not provide NILS loans. However, it’s worth talking to a financial counsellor if you’re unsure whether a NILS loan is right for you.

Financial counsellors aren’t judgmental about your circumstances – they’re here to offer you free, confidential and independent advice and assistance.

To speak to a financial counsellor you can:

  • Call the National Debt Helpline on 1800 007 007 – open Weekdays from 9:30 am to 4:30 pm.
  • Use our live chat service by clicking the chat icon in the bottom right corner of your screen. Live chat is available 9:30am-4:30pm weekdays. If you send a message outside these hours a financial counsellor will get back to you.
  • Make an appointment to see a financial counsellor in your local area –Find a local Financial Counsellor.

How does NILS work?

Will the loan be given to me in cash?

Loans are not for cash. Generally the NILS provider will pay the supplier of the item or service you need directly.

Are there any charges?

There are no fees, charges or interest.

Will they check my credit history?

Your credit history is not checked when you apply for a standard NILS loan for essential goods or services, Household Relief NILS or FDV NILS .  A credit check is required for NILS for Vehicles.

How long will it take?

The assessment itself usually takes between 45 and 90 minutes.

Loan approvals can be as quick as the same day if you have provided all of the documentation needed, or it may take up to 2 weeks, depending on the provider.

Speak to your local provider about their time frames.

What else can NILS help me with?

As part of the application process, NILS providers will generally look at your overall finances and suggest other services that may assist you. For example, they may notice you are eligible for other payments, or that you are paying more than you need in bank fees. They may even refer you to a service that will assist with the cost of the item or service you need.

What other options are available if I cannot get NILS?

If you aren’t eligible for a NILS loan, your provider will refer you to a financial counselling service or another community service that may assess you for other types of assistance.