Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 


BNZ to fund interest free and low interest loans

BNZ to fund interest free and low interest loans in $10m community finance initiative


BNZ has committed $10m to a community finance initiative offering interest free and low interest loans to people banks don’t normally lend to.

The programme will start with a one-year pilot and will be delivered in partnership with the New Zealand Government, Good Shepherd NZ and The Salvation Army.

BNZ’s director of strategy and business performance Michelle van Gaalen says the pilot will aim to help people become self-sufficient and get away from using pay-day lenders and loan sharks and will build on BNZ’s range of financial literacy initiatives.

“BNZ wants to help all New Zealanders be good with money, including those who currently don’t have access to conventional sources of credit.

“Traditionally, banks haven’t provided loans to customers with minimal income, so those people have been using the only other option they feel they have - borrowing at extortionate rates.
“By committing $10m of funding over the next five years, BNZ is taking the first step to changing this imbalance and empowering those who are vulnerable,” she says.

BNZ will draw on the experience of its parent National Australia Bank (NAB) which has been running a successful community finance programme for more than 10 years.

Ms van Gaalen says, “For some, Community Finance is seen as a way to help people break out of the cycle of poverty, for others, it’s a way to promote economic development, employment and growth. For us; it’s simply the right thing to do.”

The development of the pilot is in early stages but is intended to launch over the coming months initially in areas where the need is most acute.

Unlike a traditional microfinance model, this initial pilot will target people rather than small businesses. BNZ will provide capital, the Government will contribute to NGO operating costs, and Good Shepherd NZ will oversee the initiative. The Salvation Army will be responsible for managing the loan applications.

BNZ has appointed Frances Ronowicz to the role of head of community finance to lead the new initiative. Ms Ronowicz brings ten years experience with Instant Finance where she held senior roles, most recently general manager operations.

As well as providing funding, BNZ will support Community Finance with a financial literacy programme.

Ends

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell:
On Anne Tolley’s
Callous Folly

Years ago, I remember someone in the Heath Ministry telling me off the record that regulatory oversight in this country largely consisted in ‘waiting for something to turn green or fall off somebody’ before the authorities would swing into action...

Last week’s conflict between Social Development Minister Anne Tolley and District Court judge Carolyn Henwood illustrated quite a few of the flaws in the system. More>>

 

Members’ Bills: Greens' Domestic Violence And Loans Bills Pulled From Ballot

Jan Logie’s Domestic Violence-Victims' Protection Bill introduces workplace protections for victims of domestic violence, including allowing victims to request paid domestic violence leave for up to 10 days... Gareth Hughes’ Bill allows Kiwis with student loans to defer their student loan repayments into a first home savings scheme. More>>

ALSO:

IPCA: Police Did Not 'Deliberately' Use Pepper Spray On 10-Year-Old

"When spraying the man, the officer did not properly consider the necessity of using pepper spray in a confined space, the likelihood that it would affect the other innocent passengers or the fact that he was using a more powerful spray." More>>

ALSO:

Donor Bill Passes: Full Income Compensation For Live Organ Donors

Unanimous cross-party support for the Compensation for Live Organ Donors Bill represents a critical step in reducing the burgeoning waiting list for kidney donations, according to Kidney Health New Zealand chief executive Max Reid. More>>

ALSO:

Earthquake Response: Emergency Legislation Prepared

Three new Bills have been drafted in the wake of the magnitude 7.8 earthquake on November 14 to ensure the government can enable affected communities to respond quickly and efficiently. More>>

ALSO:

Housing MPs: New Building(s) For Parliament

A new building will be erected on Parliament grounds to house Members of Parliament and their staff who currently work in leased accommodation in Bowen House. The plan has cross-Party support, apart from NZ First, said Parliament’s Speaker, Rt Hon David Carter. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news