WA NILS Information Session Broome Money Management Wednesday 30 March 2010 Presented by Siena Balakrishnan

Overview of today’s session Over the next two hours we will cover: o What is NILS? o What can you buy? o Who is eligible? o How to apply? o Paperwork / documentation required

What is NILS? No Interest Loans Service WA NILS is a not for profit organisation created in response to the difficulties faced by low income households in obtaining affordable credit in order to purchase essential household items. WA NILS provides loans of up to $1,500 without interest or charges to low income earners to purchase basic household items.

WA NILS Contact Finding out information – visit the NILS website which has HEAPS of information Speak to Michelle : or her on

What can you buy? At present, WA NILS provides loans between $200 and $1,500 for the purchase of essential household items, predominantly but not exclusively white goods. Refer to handout for full list. Loans are for two items only. WA NILS cannot help with loans for: Bond Assistance, electricity, gas or water bills, rent arrears or debts and general expenses such as food and clothing, cars and car repairs

Who is eligible? Loans are for low income earners only. If the applicant has a Health Care Card (HCC) or pension card and their income is within NILS guidelines, they are a low income earner. In addition to being a low income earner: o You need to have lived at your current address for three months or more. o You need to be able to repay the loan.

Questions to consider o How much help to give clients? o What could you do to assist a client? o How do you encourage clients to be independent – seek their own information and documentation? o Stories to share about what level of help to provide.

How to apply? o All applications are done through a registered NILS agent. Processing time = 4-6 weeks o Complete the following forms: o Loan application form o Loan agreement form o NILS Budget form o Centrepay authorisation form o Release of info form o Quotes form from 2 traders (valid 30 days)

Budget – Debt to Income Ratio To work out debt to income ratio, please use the following formula: DEBT divided by INCOME Debt Accommodation $ Household $ Vehicle (Loan, Rego, Insurance) $ Current Debts TOTAL: $ So, $152.00/$ = 0.201% x 100 = 20.1% NB: Maximum percentage allowed is 64%. Income Paid Employment $ Centrelink Payments $ Maintenance $ TOTAL: $755.46

Practice application form Pair up and role play a case study – work through the application form and determine how much support to give this client. Where not provided make up information. 15 minutes Swap pairs and use another case study to prepare a budget and / or letter of support. 15 minutes

Support Documents - Checklist Provided by applicant: Proof of Income Proof of identification Proof of accommodation Support documents verified by the NILS agent: Budget Bank Statement / transaction list (30 days) Letter of support Refer to examples.

Final questions o Think, Pair, Share o Think by yourself how it could be used. o Pair up and discuss in detail o Share with the rest of the group. 1.How can NILS be used as a money management tool? 2.What are other ways people can afford whitegoods? 3.What other loans have you heard of?

Questions? Please refer to Rowena’s TIPS sheet for further information, enjoy!