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NAB has announced that over 40,000 low-income earning Australians have been provided with no-interest loans since January 2022.
The bank stated that a “record” $27 million was provided to Australians since January, compared to the $23 million during the same period last year.
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NAB has partnered with Good Shepherd — an organisation dedicated to helping young women and families in financial need — state and federal governments and over 30 community organisations across the country.
The partnership’s purpose was to help low-income earners purchase basics such as home appliances, help with medical bills, and assist with buying cars or computers, with customers only needing to pay back the loan in small, regular payments.
NAB data has also recently found that one in 10 Australians turned to a payday lender when experiencing financial hardship.
NAB head of customer vulnerability Mike Chambers stated that these loans were “vital for people experiencing financial difficulty”.
“No interest loans are designed especially for people who earn less than $70,000 or have a healthcare or pension card,” Mr Chambers said.
“They allow customers to borrow money for essentials without having to pay any fees or interest.”
A recent addition was the no-interest loans for vehicles, allowing people to borrow up to $5,000 for a car. Mr Chambers stated that this has “been transformative to customers who need transport they can rely on every day”.
“The current cost-of-living challenge has certainly made initiatives like our no interest loans even more essential for those who are on low incomes,” Mr Chambers said.
Support for the Regional First Home Buyer Guarantee
NAB recently voiced its support for the government’s Regional First Home Buyer Guarantee (RFHBG) program, which opened on 1 October 2022.
The scheme offers 10,000 places to regional first home buyers and guarantees up to 15 per cent for eligible first home buyers, meaning that regional Australians with a 5 per cent deposit “can avoid paying mortgage insurance”.
More than 15,000 first home buyers have been helped through NAB’s Home Guarantee Scheme, which included 4,000 first home buyers in regional locations.
The bank said at the time that it was “looking forward to helping even more Australians buy their very own home” following the launch.
NAB executive home ownership Andy Kerr added: “Regional Australian locations definitely became popular at the start of the pandemic with people moving for a ‘green change’ and this scheme will be pivotal in making the move a permanent one for many.”
[RELATED: Industry bodies throw support behind Regional First Home Buyer]
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