Hand up not handout: loan scheme’s lifelong returns
From computers and schoolbooks to chainsaws and water tanks, The Salvation Army’s no-interest loan scheme is giving people a hand up instead of handout.
In the three short years of its operation across the Australia Eastern Territory, the No Interest Loans Scheme (Salvos NILS) has given out 775 loans, worth over $890,000 with the average loan of $1,139.
“These loans are specifically for low income earners of all ages, including people who are working, who are in need of essential items or services and may otherwise be excluded from credit at reasonable rates,” says Tony Devlin, the program’s manager.
“We are providing a hand up and not a handout in a trusting positive client/caseworker relationship.”
Salvos NILS staff works with clients to ensure the loan is for an essential purpose, that the client will be able to repay the loan, and that they can do this on their budget. They also provide referrals for underlying and related issues, and money management education.
Refrigerators, washing machines, computers, beds and car repairs are the top items most often purchased. Other items range from medical and dental aids, plaques for a grave, and bicycles, to fees for TAFE courses, books for university, and a water tank for a rural client.
“Two of my favourite stories involve a 50-year-old woman in country NSW who was keen to get off the Newstart allowance,” explained Tony. “She wanted a loan for a chainsaw and box trailer so she could start a cleaning and woodcutting business!
“The other was a young fellow in Cairns who needed help buying musical instruments so he could busk and earn an income.
“I love these examples because they show the empowerment and capacity building that NILS is all about.
“It’s empowering, not just for the clients, but for the Salvos NILS caseworker because they see lives changed as a result of these loans.”
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