13 août 2014 - Community Finance Pilot Scheme - starts

Description:

The Community Finance Pilot Scheme was launched to provide low interest loans to people in Manukau and Henderson (Auckland). It was a one-year partnership between the Bank of New Zealand, Good Shepherd New Zealand, the Salvation Army and the Ministry of Social Development.
Backed by $10 million in capital from the Bank of New Zealand, the scheme was intended to provide affordable finance to people who were unable to access mainstream financial services and who were at risk of falling into the clutches of ‘loan sharks’. The Ministry of Social Development contributed to the running costs of the not-for-profit organisations. No Government capital was loaned directly to borrowers.
Two types of loans were available under the scheme:
• Step-Up Loans of between $1,000 and $5,000, with a low interest rate of 6.99 percent, with repayment periods of up to three years; and
• No-interest Loans of up to $1,000 with a repayment period of up to 18 months (available from early September 2014).
Loans were available to people who qualified for a Community Services Card, had used up any entitlements they had for loans (Advance Payment of Benefit or Recoverable Assistance for Non-beneficiaries) from the Ministry of Social Development and couldn’t borrow from mainstream banks, but could provide proof that they could repay loans. They also needed to provide proof of identity and documents showing their existing payments on regular bills and debts.
Depending on the type of loan, they could be used to buy essential household goods and services, such as new whiteware, or to pay medical expenses, or higher cost assets, such as motor vehicles, that would provide economic opportunities and improve a person’s quality of life.
The loans were not available to pay fines, bills or for non-essential items such as holidays. They did not replace assistance available from the Ministry of Social Development.
Borrowers could apply for loans through the Salvation Army whose staff had been trained by the Good Shepherd charity. Through the life of each loan, both the Salvation Army and the Bank of New Zealand monitored repayments and provided borrowers with support, including financial education.
The scheme was modelled on one that had been operating in Australia for around ten years and was funded by the Bank of New Zealand’s parent company National Australia Bank.

Source: https://www.msd.govt.nz/about-msd-and-our-work/about-msd/history/social-assistance-chronology-programme-history.html

Ajouté au bande de temps:

Date: