1. Good Shepherd Youth and Family Service Microfinance Programs

2. No Interest Loans Scheme (NILS)  Philosophy that underpins the work of Good Shepherd Youth and Family Service is based on social justice principles  NILS offer a viable alternative for people who face barriers in gaining access to small amounts of credit on fair and reasonable terms for the purchase of basic and essential household goods.  Good Shepherd Youth and Family Service have offered NILS for 25 years

3. NILS cont…  NILS are small loans up to $800 for the purchase of household goods  Loans are repaid over a period of up to 2 years  Eligibility criteria: Health Care Card or Pension Card Health Care Card or Pension Card Residential stability (more than 6 months at current address) Residential stability (more than 6 months at current address) Reside in postcode area around Good Shepherd sites Reside in postcode area around Good Shepherd sites Capacity and willingness to repay loan Capacity and willingness to repay loan

4. NILS Statistics  58% of loans are for refrigerators and washing machines  60% of loan recipients are in the 25 – 45 age group  75% of borrowers are female  47% of borrowers are single parents  97% repayment rate on loans

5. National NILS  Good Shepherd Youth and Family Service coordinates the Victorian and National NILS Network of more than 245 NILS providers in every state and territory in Australia – the largest microcredit network in Australia

6. National NILS Statistics 2004  4,500 loans  Over $3 million in loans  245 points of contact to access a NILS loan in Australia  98% repayment rate on loans

7. Other Good Shepherd Microfinance services Good Shepherd Buying Service Free statewide telephone service that assists people on low incomes to purchase new essential household items and medical appliances by negotiating discount prices with a network of traders.

8. Good Shepherd Buying Service Statistics 2005  Total number of enquiries 1,916  Total number of sales 692  Total retail value $585,856  Total sales value $456,956  Total savings value $128,900  Average savings to consumers 22%

9. StepUP Loan  Good Shepherd and National Australia Bank have developed a low interest loan in partnership  This loan aims to fill the gap between a NILS and mainstream credit  2 year pilot available in Victoria: Mornington Peninsula, Collingwood, St. Albans and NSW: Winmalee and Bathurst

10. StepUP Loan … Eligibility criteria:  Health Care Card or Pension Card  Stable housing (>6 months)  Live in geographic location around pilot sites  Capacity to repay loan (NAB loan assessment applies)

11. StepUP Loan… Loan product:  7.15% pa (fixed for term of loan)  Loans from $800 - $3,000  Flexible repayments between 6 and 36 months  Weekly, fortnightly or monthly repayment options

12. StepUP Loan  Loan purposes have varied and most loans have been used to purchase a second hand car, and household items  All loans are currently being repaid and no arrears to date

13. Better Energy Appliance Loan Program  Good Shepherd and Origin Energy have formed a partnership to develop a NILS for the purchase of high, energy efficient appliances  One year pilot offered in numerous local government areas in Victoria  A catalogue of 3 – 4 star appliances is available to consumers  Energy efficiency workshops are planned for December

14. Better Energy Appliance Loan Program… Eligibility criteria:  Health Care Card, Pension Card, and/or Family Tax Benefit Part A  Stable housing (> 6 months)  Reside in locations around pilot sites  Do not have capacity to purchase high energy efficient appliance  Willingness and capacity to repay loan

15. Good Shepherd Youth and Family Service For further information on any of the Good Shepherd Microfinance services please contact: Colette McInerney Microfinance Manager Phone: 03 9419 5477 Email: microcredit@infoxchange.net.au