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Good Shepherd's No Interest Loans (NILs) give you a way to borrow up to $3,000 without having to pay any interest. You can use it to pay for essential goods and services, as well as some housing costs and expenses related to natural disasters.
To be eligible for NILs, you need to earn less than $70,000 before tax as a single person or less than $100,000 before tax as a couple. You're also eligible if you have a Health Care Card or Pension Card. You will also need to demonstrate that you can afford to repay the loan.
What is an interest-free personal loan?
As the name suggests, no interest is charged for an interest-free personal loan. Interest is the fee you're charged by the lender for borrowing money. In this case, you are required to only repay the amount borrowed. With standard personal loans, lenders charge interest on top of the loan amount.
The most common type of interest-free personal loan in Australia is Good Shepherd's No Interest Loans (NILs). Good Shepherd is a not-for-profit community-led organisation committed to providing affordable finance for Australians in need. It has a dedicated No Interest Loans team you can call on 13 64 57.
With a regular personal loan, you can use the funds for almost any legitimate purchase. You can use it to finance a car, a wedding or holiday, or just about anything you wish. With interest-free personal loans, how you can use the funds is comparatively limited. These loans are usually only available for the purchase of essential household items and services.
What is NILs?
This is a no-interest loan designed to provide low-income earners access to safe, fair and affordable funding. No interest or fees are charged. If you're looking for income relief, you should consider this loan before opting for any other form of expensive credit.
It is offered by around 500 providers across Australia.
The eligibility criteria for NILs is different from that of a regular personal loan. This is because these loans are intended for people facing financial difficulties and who have low-incomes. You will have to prove that you're in need of these loans to be eligible.
How does NILs work and what can I use it for?
Around 500 providers work with Good Shepherd to provide NILs to families in need of credit assistance. The basic premise is that as one borrower pays off their loan, those funds are then allocated to another borrower in need. This is called "circular community credit".
As we mentioned above, NILs comes with restrictions on usage. We've outlined what you can and can't use the loan for:
Household items and essentials like fridges, stoves and washing machines
Household furniture and repairs
Car repairs and registration
Medical or dental expenses
Wellbeing and life event expenses
Education essentials like laptops and books
Employment expenses like licences and registrations
Bond and rent in advance
Rates
Costs associated with a natural disaster
Food
Bills
Debts
Cash
Am I eligible for NILS?
To be eligible for NILS, you need to:
Earn less than $70,000 a year before tax as an individual, or $100,000 if you have a partner or children
OR
Or have a Health Care Card or Pension Card
Or have experienced domestic violence in the past 10 years
Show that you can repay the loan
Does applying for NILS impact my credit score?
No credit checks are performed when applying for NILS. This means that your score will not be impacted. Additionally, if you have bad credit, you can still qualify for the loan so long as you can prove it can be repaid.
How can I apply for NILS?
You can apply for a NILS loan by following a few simple steps:
Check if you're eligible.
Find the nearest NILS provider either online or by calling 13 64 57.
Set an appointment with the provider selected.
Submit your paperwork.
Wait for your application to be assessed.
You will receive the outcome by phone or email.
Are there other interest-free loans available?
If you don't qualify for NILS, there are other options available:
0% interest financing from retailers Some retailers offer interest-free periods on the sale of their goods and appliances. For instance, The Good Guys offers up to 60 months interest-free on home appliance purchases with a minimum spend in-store or online.
Centrelink cash advance This allows you to receive an advance payment on your Centrelink benefits. This is not an additional payment, but a part of your existing allowance paid in advance. You may be eligible depending on how long you have been with Centrelink and how much you receive. You can contact the Department of Human Services for more details.
Buy now pay later Buy now pay later allows you to buy an item or a service and pay for it in instalments. No interest is charged during the stipulated period. There are also buy now pay later services that let you pay your bills in instalments.
There are also a few low-interest options available. These include:
StepUp Loans If your income is small, you could be eligible for a StepUP personal loan. This program is managed by Good Shepherd Microfinance in partnership with NAB. With this loan, you could borrow between $800 and $3,000, with a loan term of up to 3 years. The interest rate is fixed at 5.99% p.a.
Pension loans scheme If you qualify for a pension and hold equity in real estate, this government scheme uses the funds tied up in real estate as a non-taxable loan. The rate offered is significantly lower than the rates charged on other personal loans. You can contact the Department of Human Services for more details.
How else can I get interest-free terms on purchases?
There are a range of credit cards which offer 0% introductory rates on purchases. You can compare a range of these products below. Keep in mind that you'll need good credit to be eligible.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
Our personal loan comparison is completely free to use. There are no costs at all for you to use our database to find a better deal. Better still, we regularly run exclusive deals that you won't find on any other site.
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Since 2014, we've helped 300,000+ people find a personal loan by explaining your options simply. You don't need to give us any details to use our comparison. We're here to help you make a decision.
Frequently asked questions
No, you cannot use the funds from NILS to pay rent.
You can't use a NILS loan to consolidate debt, pay bills or take a holiday. You can only use the loan funds for the approved loan purpose.
Yes. Your credit score will not be checked or taken into consideration when you apply for a NILS loan.
When you arrange for an interview, the loan provider will advise you on the documentation and the information you will need to take.
No, there are zero fees or charges on a NILS loan.
Good Shepherd Microfinance is Australia's largest microfinance provider. It provides a wide range of affordable financial programs to people who find themselves excluded from traditional credit services.
Matt Corke is Finder’s head of publishing ventures. Prior to this he was head of publishing for Australia, New Zealand and emerging markets. Matt built his first website in 1999 and has been building computers since he was in his early teens. In that time, he has survived the dot-com crash and countless Google algorithm updates.
If you're wanting to bolster your application, buy an asset with your partner or apply for a loan you're not eligible for by yourself, you can consider a joint application personal loan.
Are you in need of a larger loan but concerned about your credit history? There still may be options available, no matter your credit history. Read our guide to find out what might be available to you.
Do you need to cover the costs of an elective surgery or unexpected medical bill? Compare a range of personal loans for medical expenses and cosmetic procedures.
Our refrigerator is on the blink and we cannot repair it,
We need to buy a new one ASAP I am on a disability pension with my wife as my carer We have very little cash flow and savings but we own our house outright
Wots are our options of getting a low interest pension loan
Thanks for getting in touch! Our page shows the list of providers who may accept your application. As it says on our page:
You need to meet a few criteria to be eligible for an interest-free personal loan:
Have a Health Care Card or Pension Card
Earn less than $45,000 per year
Have lived at your current address for at least three months
Show a willingness and the capacity to repay the loan
There are no credit checks required during the loan application process. Instead, interest-free personal loans are offered on a basis of trust and respect.
Since some lenders accept Centrelink benefits as your sole source of income, all you need is to do some research or look for a mortgage broker to help you on getting a home loan. You may use our Centrelink home loan guide for your application.
I hope this helps.
Please feel free to reach out to us if you have any other enquiries.
If you’re looking to purchase a car, you can consider a secured car loan from a lender that accepted Centrelink applicants. You can purchase a new or used car and use it as security for the loan to get a lower rate. You can learn more about the types of loans available to Centrelink recipients.
Please send me a message if you need anything else. :)
If you’re looking for assistance with your application you’ll need to get in contact with Good Shepherd Microfinance directly. I’ve emailed you its contact information.
If you’re considering applying for a Good Shepherd Finance loan you can visit its website and review the eligibility criteria. An air conditioner may be considered to be an eligible household item, but its best to get in touch to find out.
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Our refrigerator is on the blink and we cannot repair it,
We need to buy a new one ASAP I am on a disability pension with my wife as my carer We have very little cash flow and savings but we own our house outright
Wots are our options of getting a low interest pension loan
Hi Raymond,
Thanks for getting in touch! Our page shows the list of providers who may accept your application. As it says on our page:
You need to meet a few criteria to be eligible for an interest-free personal loan:
Have a Health Care Card or Pension Card
Earn less than $45,000 per year
Have lived at your current address for at least three months
Show a willingness and the capacity to repay the loan
There are no credit checks required during the loan application process. Instead, interest-free personal loans are offered on a basis of trust and respect.
Hope this helps!
Best,
Nikki
Hi,
Can I get a home loan if I am on disability pension?
Hi Maryam,
Thank you for getting in touch with Finder.
Since some lenders accept Centrelink benefits as your sole source of income, all you need is to do some research or look for a mortgage broker to help you on getting a home loan. You may use our Centrelink home loan guide for your application.
I hope this helps.
Please feel free to reach out to us if you have any other enquiries.
Thank you and have a wonderful day!
Cheers,
Jeni
Can I borrow to buy a car I’m on centrelink benefits and I work. If so what is the most I could borrow ?
Hi Lisa,
Thanks for leaving a question on Finder.
If you’re looking to purchase a car, you can consider a secured car loan from a lender that accepted Centrelink applicants. You can purchase a new or used car and use it as security for the loan to get a lower rate. You can learn more about the types of loans available to Centrelink recipients.
Please send me a message if you need anything else. :)
Cheers,
Joel
Tanya
Need help fill in
Hi Tanya,
If you’re looking for assistance with your application you’ll need to get in contact with Good Shepherd Microfinance directly. I’ve emailed you its contact information.
Hope this will help,
Elizabeth
I am on DSP pension. Can i get a air conditioner interest free?
Hi Stephen,
If you’re considering applying for a Good Shepherd Finance loan you can visit its website and review the eligibility criteria. An air conditioner may be considered to be an eligible household item, but its best to get in touch to find out.
I hope this has helped.
Thanks,
Elizabeth