Interest-free Personal Loans

Is it possible to get a loan with 0% interest?

Yes it is. These are loans where no interest is charged for an interest-free personal loan. Interest is the fee you're charged by the lender for borrowing money.

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.

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.

What is the NILs?

This is a no-interest loan designed by Good Shepherd 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.

No Interest Loans (NILs) allow eligible applicants 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.

The NILS program operates through a long-standing partnership between Good Shepherd, the Australian Government and National Australia Bank (NAB). Since 2003, NAB has provided the loan capital for the scheme, ensuring its credibility and scale as a legitimate alternative to high-cost commercial lending (Source: NAB Sustainability Report).

How can I borrow money with no interest?

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.

To be eligible for Good Shepherd's 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.

There is also a dedicated eligibility pathway for those who have experienced family or domestic violence within the last 10 years. For these applicants, the standard income limits may not apply, though they must still demonstrate an ability to repay the loan (Source: Good Shepherd / Department of Social Services).

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.

However, with these interest-free personal loans, they are usually only available for the purchase of essential household items and services. It is offered by more than 170 local community not-for-profit organisations in over 600 locations across Australia.

"This type of loan can be really beneficial if you're rebuilding or getting back on your feet after a financial setback, as the lender doesn't take into account your credit score or repayment history when reviewing your application. Instead, they're focused on your ability to repay in the future, with a loan term of up to 48 months available."

Sarah Megginson

Money expert + media spokesperson

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 essential appliances 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
• Rental bonds (up to $3,000)
• Council rates
• Costs associated with a natural disaster

• Food
• Bills
• Rent in arrears
• Debts
• Cash

For those using the domestic violence pathway, the loan can also cover relocation costs and the expenses involved in establishing a safe new household (Source: Good Shepherd).

How do I know if 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

You also have to 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:

1. Check if you're eligible.
2. Find the nearest NILS provider either online or by calling 13 64 57.
3. Set an appointment with the provider selected.
4. Submit your paperwork.
5. Wait for your application to be assessed.
6. 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. While these deals appear attractive, they often carry hidden risks such as high establishment fees and monthly account charges. If the balance is not cleared within the interest-free period, the remaining debt is typically subject to backdated interest at rates often exceeding 25% (Source: ACCC / Moneysmart).
• A 0% interest credit card
  Many Australian banks and lenders offer 0% interest credit cards, usually for a set period, such as an introductory offer on purchases for 12 months.
• 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. Users should be aware of fee structures that can include monthly account-keeping fees (e.g. Zip Pay) or service fees that accumulate if multiple orders are active. While late fees are now capped under 2025 regulations, BNPL remains a form of credit that can impact future loan applications (Source: Financial Rights Legal Centre / Stripe).
• 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.

Strategic Prioritisation

Financial experts recommend prioritising NILS over commercial interest-free alternatives whenever possible. Unlike BNPL or retail finance, NILS is strictly fee-free and interest-free, meaning there are no account-keeping fees or penalties for on-time repayments. Furthermore, the application process includes a "financial conversation" with a microfinance worker, which helps borrowers build long-term financial capability rather than just facilitating a transaction (Source: Good Shepherd Pathways to Resilience Report).

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.

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Checked 5 November 2026

Purchase rate p.a.	Balance transfer rate p.a.	Annual fee	Interest-free days
NAB Low Rate Business Card	Intro purchase rate 0% for 12 months, then 13.99%		$0 first year ($60 after)	Up to 55 days on purchases	ABN w/ $75,000 p.a. revenue. 0% p.a. interest for 12 months on purchases and receive complimentary unauthorised transaction insurance.	Go to siteView details Compare product selection Compare	loading
CommBank Neo Card	Intro purchase rate 0%		$0	-	No late fees and complimentary access to Hopper travel bookings for eligible customers.	ContinueView details Compare product selection Compare	loading
Wizitcard	Intro purchase rate 0%		$0	-	Charges a fixed monthly fee, which is waived if there’s no card activity and no outstanding balance.	ContinueView details Compare product selection Compare	loading
MyCard Rewards - Purchase and Balance Transfer Offer	Intro purchase rate 0% for 15 months, then 22.49%	0% for 15 months with 2% balance transfer fee, then 22.99%	$249	Up to 44 days on purchases	Get up to 15% hotel discounts and complimentary mobile phone insurance.	ContinueView details Compare product selection Compare	loading
Credit Union SA Education Community Credit Card	Intro purchase rate 0% for 6 months, then 11.49%	0% for 6 months, then 11.49%	$0	Up to 55 days on purchases	ContinueView details Compare product selection Compare	loading
Credit Union SA Workplace Benefits Credit Card	Intro purchase rate 0% for 6 months, then 11.49%	0% for 6 months, then 11.49%	$0	Up to 55 days on purchases	ContinueView details Compare product selection Compare	loading
Bankwest Zero Platinum Mastercard	Intro purchase rate 0% for 6 months, then 18.99%	0% for 6 months with 3% balance transfer fee, then 18.99%	$0	Up to 55 days on purchases	ContinueView details Compare product selection Compare	loading
MyCard Simplicity	Intro purchase rate 0% for 6 months, then 22.49%	0% for 6 months, then 22.99%	$49	Up to 44 days on purchases	Get up to 15% off select hotel bookings and access complimentary purchase protection insurance on eligible purchases.	ContinueView details Compare product selection Compare	loading

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Showing 8 of 8 results

Compare other products

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How we picked these

Why compare personal loans with Finder?

Addicted to details. We know taking out a personal loan is something you'll be hooked up with for a while. That's why we put hours into research for this guide (and still do at least once a month)

Rates obsessed. Lenders come in all shapes and sizes, that's why we don't just track the big banks, but all the digi folk too. Pretty much everyone but your parents to be honest.

Cash for whatever you need. Lending rates verified from 180+ products day and night. Whether you're buying a car, renovating your home or heck just ready to let loose with the spending - we got you.

Frequently asked questions

• Can I use a NILS loan to catch up on my rent?

  You can use it towards a rental bond, but not for rent in advance or rent you already owe.

• What else can't I use the loan funds for?

  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.

• Can I still qualify for an interest-free personal loan if I have a bad credit history?

  Yes. Your credit score will not be checked or taken into consideration when you apply for a NILS loan.

• What information do I need to take along to a loan interview?

  When you arrange for an interview, the loan provider will advise you on the documentation and the information you will need to take.

• Are there any application fees or monthly or annual fees attached to these loans?

  No, there are zero fees or charges on a NILS loan.

• What is Good Shepherd Microfinance?

  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.

Written by

Matt Corke

Head of Publishing Ventures

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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. See full bio

Co-written by

Amy Bradney-George

Journalist

Amy is an experienced journalist with over 16 years of experience, contributing to major publications like Money Magazine, The Sydney Morning Herald, and ABC News Australia. Specialising in personal finance, she frequently appeared in media outlets and on radio. Amy holds a Bachelor of Arts in Journalism and Drama from Griffith University and earned RG146 certifications in Tier 1 Generic Knowledge and Tier 2 General Advice Deposit Products, ensuring her expertise is grounded in current financial regulations. Amy was Finder's Senior Writer for Credit Cards from 2016 to 2024. See full bio

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Amy has written 425 Finder guides across topics including:

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