A Loan Helping Hand Raised For Low Income Holders in South Australia
In SA, so as to save the people having low incomes from payday loans, a financial organisation named ”not-for-profit” started giving interest free loans to them.
The Salisbury-based Good Money store officially opened on Friday, will provide no-interest loans of up to $1,200 and loans of up to $3,000 with an interest rate of 5.99 per cent.
Good Shepherd Microfinance is the parent company of this store and the name of the chief executive officer is Adam Mooney.
Mr Mooney said, “97 per cent of loans are fully repaid and it’s not only a financial transaction, it’s also an opportunity for dignity, for self esteem to rise, to look somebody in the eye and say ‘I respect you, I value you, I trust you’, and that’s worth so much in someone’s life”.
NAB is supporting the organisation for capital by providing $130 million for loans, interest free. The South Australian Government has committed $3.68 million over the next four years, which the organisation says will contribute to operating costs.
Mr Mooney believes that Very soon [people] find themselves spending everything they can to service that loan and then need to take out another loan, and another loan, because Good Shepherd Microfinance aims to provide a safer alternative to the payday loan schemes that often attract high interest rates.
News Source: http://www.abc.net.au/news/2015-08-14/low-and-no-interest-loans-offered-to-low-income-earners/6696398