The Community Finance partnership low and no interest loan schemes are now available in Hamilton, providing affordable finance for people on low incomes.
The initiative, run by Good Shepherd New Zealand and BNZ, with support from the Ministry of Social Development and delivered by community partners like the Salvation Army, is also available in Rotorua, Invercargill, Wellington, Whangarei, Palmerston North, Hawkes's Bay and Christchurch. A pilot scheme was established in Auckland in 2014.
Loans are provided to a group of New Zealanders described as 'financially vulnerable' - meaning they don't meet standard bank criteria and have exhausted their Work and Income options. As a result, many are forced to take out loans with alternative lenders, many of whom charge high interest rates and fees.
"Community Finance provides access to a fair, safe and affordable line of credit for people living on low incomes, and we are delighted that the success of the pilot led to the funding that is enabling us to launch our new regions," said chief executive of Good Shepherd New Zealand, Fleur Howard.
"But we know it's so much more than a loan. By connecting with community loan workers, people learn life skills like managing their budget better and become more savvy in their understanding of the dangers of third tier lenders.
