No or low interest loans – How to get a no or low interest loan

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A no interest loan or StepUP low interest loan helps you borrow money quickly to get back on your feet.

Repayments are affordable, there are no fees or charges, and it’s a lot cheaper than a payday loan.

If you’re struggling to make ends meet, see urgent help with money for free services that can help.

Loans without interest: apply for a Household Relief Loan to pay for rent and utilities if you’ve been financially impacted by COVID-19. Loans are for up to $3,000, have no interest or fees and are repayable over 24 months. 

No interest loans

A no interest loan lets you borrow up to $1,500 to pay for essentials. Repayments are affordable and the loan term is between 12 and 18 months. There are no credit checks.

The best part is you pay no interest, fees or charges. You only repay what you borrow.

Who can get a no interest loan

To get a no interest loan you must:

  • have a Health Care Card, a Pensioner Concession Card or an income less than $45,000 per year after tax
  • have lived at your current address for more than three months
  • show that you can repay the loan

How to get a no interest loan

Get a no interest loan in two steps:

Step 1. Visit the no interest loan scheme (NILS) website and call your local NILS provider to arrange a meeting.

Step 2. When you meet, they will help you with your application and work out your repayments.

How long will it take?

The loan assessment usually takes between 45 and 90 minutes.

No interest loans are usually approved within 2 days. If you bring all your paperwork, it can be approved on the same day.

What you can buy with a no interest loan

You can use a no interest loan to pay for:

  • household items, like a fridge, washing machine, computer or furniture
  • educational materials, like a tablet or textbooks
  • some medical and dental services
  • car repairs and tyres

Ask your NILS provider if you need something that’s not on this list.

No interest loans are not cash loans. The NILS provider will generally give you a cheque addressed to the supplier.

StepUP low interest loans

A StepUP loan is a low interest loan for people on lower incomes who find it hard to borrow from a bank.

With a StepUP loan you can borrow between $800 and $3,000. It has a low interest rate (fixed at 5.99%) and no fees or charges.

You have up to three years to pay back the loan with weekly, fortnightly or monthly repayments.

Who can get a low interest loan

To get a low interest loan you must:

  • have a Health Care Card or a Pensioner Concession Card, or be receiving Family Tax Benefit A
  • have lived at your current premises for more than three months

How to get a low interest loan

Get a low interest loan in three steps:

Step 1. Visit the StepUP loan website and call your local StepUP loan provider to arrange a meeting.

Step 2. They will help you with your application and work out your repayments.

You’ll need:

  • your Health Care Card or Pensioner Concession Card, or documents to show your finances
  • documents showing you’ve lived at your current address for more than three months

Step 3. The StepUP loan provider gives your loan application to the National Australia Bank (NAB). NAB assesses your application and checks your credit report.

If your loan is approved, you’ll need to visit an NAB branch to sign the loan contract. You will get a cheque made out to the supplier.

What you can buy with a low interest loan

You can use a low interest loan to pay for:

  • a secondhand car, car repairs or tyres
  • whitegoods, like a fridge, stove or washing machine
  • furniture
  • computers, laptops and tablets
  • vocational education materials
  • medical expenses

Ask your StepUP provider if you need something that’s not on this list.

What StepUP loans cost

You can work out your repayments with our personal loan calculator. Set the interest rate to 5.99% and the fees to $0. You can choose weekly, fortnightly or monthly repayments.

Wealthness Pty Ltd ABN 13 231 248 112  [t/a Better Financial Planning Australia]  is a Corporate Authorised Representative of Infocus Securities Australia Pty Ltd ABN 47 097 797 049 AFSL No. 236523. It is important to be aware that Better Financial Planning Australia is not authorised by Infocus to provide advice relating to credit services or property advice. Infocus is not responsible for any advice outside of the scope of this authorisation and should you wish to act on any of this general information, please first seek professional financial advice.

Wealthness Pty Ltd t/as Better Financial Planning Australia will endeavour to update the website as needed. However, information can change without notice and Wealthness Pty Ltd t/as Better Financial Planning Australia does not guarantee the accuracy of information on the website, including information provided by third parties, at any time.

This information is of a general nature only and neither represents nor is intended to be specific advice on any particular matter. Infocus Securities Australia Pty Ltd strongly suggests that no person should act specifically on the basis of the information contained herein but should seek appropriate professional advice based upon their own personal circumstances. Although we consider the sources for this material reliable, no warranty is given and no liability is accepted for any statement or opinion or for any error or omission.

Wealthness Pty Ltd t/as Better Financial Planning Australia does not give any warranty as to the accuracy, reliability or completeness of information which is contained in this website. Except insofar as any liability under statute cannot be excluded, Wealthness Pty Ltd t/as Better Financial Planning Australia and its employees do not accept any liability for any error or omission on this website or for any resulting loss or damage suffered by the recipient or any other person.

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Source: ASIC MoneySmart

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