How Aussies can access interest free loans

Australians struggling with cost of living will get access to interest free loans of up to $3,000 to help pay for expenses for the next five years under a $50 million investment from Labor.

EXCLUSIVE

Australians struggling with cost of living will get access to interest free loans of up to $3,000 to help pay for household goods, medical expenses and education for the next five years under a $50 million investment from Labor.

The Albanese Government will on Wednesday announce the new funding to support the no interest loans program run by Good Shepherd Australia, which in partnership with National Australia Bank has already helped a million people access cheap finance to pay for essentials.

Good Shepherd administers the scheme, while NAB provides the loan capital, which can be used by eligible recipients for urgent, critical household purchases and for vehicles for transport to work and essential day-to-day use.

The program is open to individuals who earn less than $70,000 a year, or $100,000 for a couple or person with dependants, as well as anyone with a health care card or pension card.

Anyone who has experienced domestic and family violence in the past ten years is also eligible.

The Albanese Government is announcing a $50 million investment. Picture: NewsWire/Tertius Pickard

Interest free loans of up to $3,000 can be accessed to pay for things like fridges, washing machines and furniture, as well as education and medical expenses.

There are also loans available of up to $5,000 that can be used to purchase cars, mobility scooters and related costs like registration or maintenance.

Social Services Minister Amanda Rishworth said the government’s $48.7m investment would help ease cost of living pressures for many Australians who need support.

“We’re proud to support Good Shepherd and NAB to deliver no-interest loans as an alternative to other high risk, high interest products such as buy now pay later products and payday loans,” she said.

“No interest loans provides support that is usually unavailable to low-income earners through mainstream providers, meaning tens of thousands of vulnerable Australians can purchase the essential things they need.”

People struggling with cost of living will get access to interest free loans of up to $3,000 to help pay for household goods, medical expenses and education for the next five years.

Good Shepherd Australia New Zealand chief executive Stella Avramopoulos said the program was breaking down barriers, empowering women, sole parents and families, especially those escaping domestic violence, to “achieve lasting financial independence and wellbeing”.

“With 25 per cent of recipients being sole parents and 18 per cent survivors of family and domestic violence, this support isn’t just about financial assistance - it’s about providing dignity, stability, and a pathway to a better future,” she said.

“We’re creating meaningful, lasting change - removing credit barriers, preventing predatory lending, and ensuring vulnerable Australians, particularly those in regional and remote communities, have access to the resources they need to recover and rebuild.”

NAB executive for sustainability Jessica Forrest said the program had provided more than $560m in zero-interest capital over 21 years.

“Too often, people in financial stress turn to high-interest payday loans,” she said.

“No interest loans offer a safer alternative, helping Australians borrow money without having to pay any fees or interest.”

Originally published as How Aussies can access interest free loans