A partnership between the bank and Good Shepherd NZ is making the major policy change possible.

In one loan option, the BNZ is supporting interest-free Good Loans of up to $7,000 to eligible families and individuals.

Their aim is to help those on limited incomes avoid predatory lenders and high-cost debt.

The money can be used to pay for essential items or services - new household appliances, computers, car repairs or medical expenses, for instance.

Another option is the DEBTsolve programme. With this, the bank is also supporting Good Shepherd NZ's offer of interest-free Good Loans of up to $15,000.

DEBTsolve combines debt coaching and advocacy alongside interest-free debt solution loans. The goal is to help more New Zealanders get on top of unmanageable debt.

People's financial circumstances can be fragile, says Good Shepherd NZ Chief Executive Fleur Howard.

"Sometimes all it can take is an unexpected event, like their car breaking down, to tip people from just managing financially to being under a significant amount of financial stress," she explains.

"These households may have been forced to turn to high-cost lenders, exacerbating their financial difficulties and creating a spiral into further debt.

"Through Good Loans, we want to continue reducing barriers and increasing access to fair and affordable lending for essential services and products for the growing number of families and individuals who need this support."

Having an account with the BNZ isn't a requirement. The free Good Loans are available to eligible New Zealanders on limited incomes.

Why the policy change?

Until now, interest-free Good Loans have been available only for amounts up to $2,000. Good Loans of up to $15,000 attracted a low-interest rate of 6.99 per cent.

"We know there are families and individuals on limited incomes out there struggling, who need a hand to take some of the pressure off," says BNZ CEO Dan Huggins.

"That's why, together with Good Shepherd NZ, we've announced these changes to help families and individuals when they need it most.

"Supporting interest-free Good Loans is part of our commitment to support the long-term wellbeing of New Zealanders by helping them avoid predatory lenders and unmanageable high-cost debt."

Since 2014, BNZ, Good Shepherd NZ and community partners have provided just under $12 million in no- or low-cost lending to over 4,000 families.

They estimate they've saved customers over $6 million in fees and interest had they borrowed from high-cost lenders.

BNZ has committed to delivering $50 million in no or low-interest loans and advances. It's part of its wider sustainability strategy to grow all New Zealanders' long-term social and financial well-being.

Good Loans are also supported by the Ministry of Social Development.

Source

• Scoop

The inspiration for the scheme came from a similar one run in Australia by a financial institution and a microfinancing body which was started by Catholic nuns.

The Community Finance Scheme in New Zealand starts with $10million in initial finance from the Bank of New Zealand and a small government subsidy for administration costs.

A pilot scheme has been launched and will run at the Salvation Army's Manukau and Henderson offices, but only a handful of loans will be able to be processed initially.

If the pilot proves successful it will be rolled out in other cities, including Wellington and Christchurch.

Two types of fee-free loans will be available.

A no-interest loan scheme ("NILS") of up to $1000 for up to 18 months will be available from early September.

"StepUp" loans of between $1000 and $5000 for up to three years at 6.99 per cent interest are now available.

Both loans are only for "essentials" including buying and repairing second-hand cars, new household appliances and computers, and health and educational costs.

They are not available for other uses such as paying for bills, fines, funerals or travel, the New Zealand Herald reported.

Both are available to people who qualify for a community services card, have used up any entitlements they have for loans from Work and Income and can't borrow from mainstream banks, but can provide bank statements or other proof that they can repay the loans.

Applicants also have to provide proof of identity, proof of address and documents showing all their existing payments on regular bills and debts.

Both types of loans have been copied from similar schemes run in Australia for the past decade by BNZ's parent company National Australia Bank and Good Shepherd Microfinance, founded in 1981 by Catholic nuns of the Good Shepherd.

In New Zealand, a state subsidy believed to be about $250,000 a year for three years will be split between the Salvation Army and Good Shepherd Trust.

The trust has provided all its intellectual property for the local scheme, will train Salvation Army and BNZ staff, and has appointed an Auckland-based project manager.

Loan sharks have been charging interest rates at levels of 10 per cent a week, for example.

Sources

• New Zealand Herald
• Stuff.co.nz
• Image: Discovery Finance

It is on state Highway 1 near Otaki, on the Kapiti Coast, and has been unused since it shut in the early 1980s.

Marycrest has been listed for a minimum $2 million by Victor Greenwich, now living in Sydney, who says he is a descendent of a princely Georgian house.

Marycrest was established in 1953 by a religious congregation, the Good Shepherd Sisters, which originated in France.

Roscoe Turner, a Marycrest researcher, in his 2008 history, says Sister Mary Teresa Kennedy and Mary St Finton arrived there from Upper Hutt with "three founding girls".

"The girls who came into the care of the sisters often had problems that could not be resolved in their normal environment and needed the loving care of others to restore their sense of self-worth."

Marycrest, Turner said, closed because of a declining number of sisters and changes to institutional care and counselling.

The property changed hands over the years. It was bought by Newman's bus company, who wanted to turn it into a country club and golf course.

Former Wellington mayor Sir Michael Fowler later bought Marycrest with hopes of developing a tourist resort.

Greenwich said he bought Marycrest in 1988 after building a home in nearby Peka Peka in 1981.

"I had heard that the government was going to put in a ...prison [at Marycrest], which is the reason I bought it, to maintain its tranquility."

Source

• Stuff.co.nz
• Image: TradeMe