Women fleeing dometic violence to be given interest-free loans
Women fleeing abusive relationships will be supported to build a new life with loans of thousands of dollars to pay for basics such as furniture, whitegoods and car registration.
NSW
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Women fleeing family violence will be given interest-free loans to help them escape abusive partners and build a new life.
To mark International Women’s Day, the federal government will provide $20 million to a no-interest loan scheme that provides loans of as much as $2000 to help cover the cost of basic furniture and whitegoods, car registration or a bond for a new house.
This is expected to fund about 15,000 loans over the next four years
The No Interest Loan Scheme is run by Good Shepherd Microfinance, which makes purchases and payments on behalf of vulnerable women to avoid tipping off partners who may still have access to shared bank accounts.
Chief executive Stella Avramopoulos said while Australia needed a cultural and systemic change to address domestic violence, the loan scheme was a “significant lever the government could pull”.
She said family violence victims are paired with caseworkers who help them regain control of their finances and set long-term financial goals.
“This gives women the opportunity to have a respectful and trust-based conversation about their finances,” Ms Avramopoulos said.
“It means they don’t have to go out and buy things for a new home, which minimises stress and trauma during a difficult time.”
She said one of the main reasons women access the loans is to cover the cost of car servicing or registration.
The government hopes the expanded scheme will be seen as a safe and affordable option for vulnerable women who may otherwise be caught up in high-interest payday loans.
Social Services Minister Anne Ruston said the government was committed to addressing domestic violence from two directions — prevention and response.
“It’s hard to fathom that so many women in this country do not feel safe and are forced to live in fear of manipulation, control and violence,” Senator Ruston said.
“Women leaving violence often face financial hardship and we hope these loans can go some way to help them meet the costs of the basics as they set up a new life for themselves and their children.”
More than 160,000 Australian women have reported experiencing financial abuse from their current partner, while more than 800,000 women have experienced financially abusive behaviours from a previous partner.
The government currently provides $6 million a year to Good Shepherd for an existing scheme that offers loans to low-income earners.