About Community Lending

NILS loans have the capacity to turn people’s lives around

Loan recipients often find that for the first time in their lives they are able to own something new and reliable. There is also a sense of pride and achievement associated with the completion of a loan.

Our overall aim is to improve the living standards of low-income Tasmanians.

We also aim to:

  • improve consumer skills such as budgets and bargaining
  • assist people to re-engage with their communities
  • empower people to choose the product or service they wish to purchase

Community lending in Tasmania   

Community lending services in Tasmania started in 2002 when the No Interest Loans Network of Tasmania Inc. was first established. It was supported by the Tasmania Community Fund as well as Anglicare Tasmania, Mission Australia, The Salvation Army and countless other non-government organisations.

NILS Tasmania is based on the concept developed by Good Shepherd in Victoria and operating across Australia.

The Tasmanian program differs in a number of ways from the mainland program, acting as a central administration body while Member Agencies across the State provide assistance to borrowers both by promoting the program and helping them to fill out application forms.

Capacity to repay

One strict requirement of NILS is that the applicant is able to repay the loan without added stress. This means that the borrower will not be put in a situation where they have to choose whether to pay their NILS loan or rent (for example). The ability to repay is calculated as a debt to income ratio of below 55%.

We do not want to put any borrower in a situation where they feel they must run away or hide from their NILS debt. This means we are flexible where we need to be and can provide holidays from repayments or alter the repayment rate with no penalty.

NILS does not repossess items or call in debt collectors.