$50 million loan capital announced for microfinance

$50 million loan capital announced for microfinance in New Zealand

Bank of New Zealand’s additional $50 million commitment to the future of microfinance has been welcomed by Good Shepherd New Zealand, a national leader in the growing microfinance and financial inclusion sector in New Zealand.

BNZ has announced that it will add $50 million to its existing $10 million commitment of loan capital available to the No Interest Loan Scheme (NILS) and StepUP low interest loan programme – programmes that enable those living on low incomes access to secure safe, fair and affordable loans to pay for life’s essentials.

Fleur Howard, Chief Executive at Good Shepherd NZ, said the NILS and StepUP programmes were a valuable alternative for people who can’t access a bank loan.

“NILS and StepUP enable people to buy a car to get them to and from work, a computer to study, or a new fridge to replace a broken one. All those things that you take for granted when you have access to a credit card or savings”, said Ms Howard.

“Without NILS and StepUP, these people would have little choice but to turn to high cost finance companies that invariably make their financial situation even worse.”

Ms Howard said BNZ had been a wonderful partner to work with, and their additional commitment gave the NILS and StepUP programmes certainty and would allow Good Shepherd NZ and BNZ to plan for expansion of their partnership, the Community Finance initiative.

“This is a significant, long term investment in the future of inclusive finance in New Zealand. One that enables us to continue to grow our no interest and low interest loan programmes. The size of BNZ’s commitment shows they’re committed to the future of microfinance in New Zealand and means we can explore new and innovative ways to support people experiencing financial exclusion.”

Ms Howard said she was excited to have a commitment from such a large corporate partner, and was looking forward to extending the reach of NILS and StepUP and improving access to safe, fair and affordable loans.

“We have the capital ready and waiting, now we just need to make sure it gets to the people who need it. The Ministry of Social Development has been supportive of pilot work with NILS and StepUP and we are looking forward to working with them and BNZ further to ensure this loan capital can be accessed by as many people as possible.”

“NILS and StepUP are more than just loans - as part of the application process every client has a financial conversation which helps to build their financial capability. NILS and StepUP can be a game changer for clients and together with BNZ and the New Zealand Government we can change lives”, said Ms Howard.

END

© Scoop Media