Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 


Affordable loans for low income families

Hon Paula Bennett
Minister for Social Development

13 August 2014

Affordable loans for low income families

Social Development Minister Paula Bennett today officially launched a Community Finance pilot scheme that will see StepUP low-interest loans available in Manukau and Waitakere

“Community Finance will help people with borrowing for assets they need for employment, education and a better quality of life,” says Mrs Bennett.

“This is another way we are helping families to help themselves become financially independent, by offering sustainable borrowing that avoids spiralling debt.”

“Community Finance is an excellent public-private partnership between the Bank of New Zealand, Good Shepherd New Zealand, The Salvation Army, and the Ministry of Social Development.

“Together, our aim is to help low-income families and individuals build up their asset base and achieve greater financial knowledge and skills. Too many people on low incomes feel they have no other option but to borrow from unethical lenders who overinflate their prices and charge exorbitant interest.

“The first Community Finance product is StepUP loans for cars and other goods and services, which are now available to people on low incomes in Manukau City and Waitakere.

“The Bank of New Zealand-backed loans offer good discounts from market interest rates. They are also free of traps such as fees (often hidden in the small print) and savage penalties which other, less ethical, lenders charge.

“The scheme has begun with a one-year pilot in South and West Auckland with the Ministry of Social Development contributing to the running costs of the not-for-profit organisations that provide the backbone and borrower support roles. No Government capital will be loaned directly to borrowers.

“People can apply for the loans through the two local branches of The Salvation Army and borrowers will be supported over the lifetime of the loans with financial education,” says Mrs Bennett.

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

Wellington: Predator Free Capital Plan

Wellington City Council (WCC), the Greater Wellington Regional Council (GWRC) and NEXT Foundation, today announced a joint collaboration to make Wellington the first Predator Free capital city in the world. More>>

ALSO:

Gordon Campbell: On Judith Collins’ Efforts At Self Correction

Thousands of prisoners currently in prison may be entitled to an earlier release than expected – and compensation – because Corrections has incorrectly calculated their term of imprisonment. Unless of course, the government buries its mistakes by changing the law and retro-actively getting itself off the hook… More>>

ALSO:

More Justice & Corrections

Sector Opposes Bill: Local Government Bill Timeframe Extended

The Minister of Local Government Peseta Sam Lotu-Iiga has asked the Select Committee to extend the report back date for the Local Government Act 2002 Amendment Bill (No 2). More>>

ALSO:

Breed Laws Don’t Work: Vets On New National Dog Control Plan

It is pleasing therefore to see Louise Upston Associate Minister for Local Government calling for a comprehensive solution... However, relying on breed specific laws to manage dog aggression will not work. More>>

ALSO:

Not Waiting On Select Committee: Green Party Releases Medically-Assisted Dying Policy

“Adults with a terminal illness should have the right to choose a medically assisted death,” Green Party health spokesperson Kevin Hague said. “The Green Party does not support extending assisted dying to people who aren't terminally ill because we can’t be confident that this won't further marginalise the lives of people with disabilities." More>>

ALSO:

General Election Review: Changes To Electoral Act Introduced

More effective systems in polling places and earlier counting of advanced votes are on their way through proposed changes to our electoral laws, Justice Minister Amy Adams says. More>>

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news