THIS Wednesday BaptistCare Warilla North Community Centre will mark a $2.5 million milestone in its efforts to break the cycle of poverty and debt in Australia.
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Through the No Interest Loan Scheme (NILS) and low interest loans program (StepUP), Warilla North BaptistCare has provided 1500 families and individuals with access to money since the first NILS cheque was signed in 2008.
The NILS and StepUP initiatives provide families and individuals who are financially struggling with access to funds for every day and unexpected expenses, without needing to resort to pay-day lenders and pawnbrokers.
NILS loans are provided with no fees and no interest for up to $1200 and StepUP loans have a low interest rate of 5.99 per cent for up to $3000 and are repaid over three years.
BaptistCare cluster manager at Warilla North said microfinance was greatly needed in communities with high levels of disadvantage, such as Warilla.
“People in these areas can be financially excluded from mainstream finance and as a result turn to the market that is available to them, such as payday lending or rent to buy,” he said.
“Often these types of loans have a 48.5 per cent interest rate and rent-to-buy schemes are uncapped entirely.”
NILS and StepUp were designed to help address the 14.9 per cent of people in NSW, and 13.9 per cent nationally, living in poverty, shown in a report by Australian Council of Social Service.
BaptistCare service development manager Ross Coleman said the loans helped people get access to basic living items such as whitegoods, bedding, car repairs, dental and health care.
To mark the milestone Shellharbour Mayor Marianne Saliba and NSW Office of Fair Trading Commissioner Mr Rod Stowe will give special recognition to BaptistCare and program partners on Wednesday, October 22.
The event will also acknowledge the significant impact these microfinance loans are making in the day to day lives of local residents in breaking cycles of poverty and debt.
NILS and StepUP are initiatives of Good Sheppard microfinance in partnership with National Australia Bank, providers and the government.
For more information www.baptistcare.org.au