No and low interest loans for struggling South Australians
South Australians on low incomes now have access to no and low interest ethical loans with the official opening of the Good Money store in Salisbury today.
The State Government has teamed up with Good Shepherd Microfinance and the National Australia Bank to provide an alternative to high interest payday lenders.
"Prior to the last election, the State Government committed $3.68 million for safe, fair and affordable finance for South Australians on low incomes, particularly those living in the northern suburbs," Minister Zoe Bettison said.
"It's an alternative to the crippling high interest loans many vulnerable South Australians take up from an increasing number of payday lenders.
"What's really concerning is that these payday lenders appear to target suburbs with a high proportion of people on fixed incomes.
"For many households, payday lenders are seen as a quick fix but the extraordinarily high interest rates often cause more financial pain for the borrower."
The Good Money store is the first of its kind in South Australia and provides a range of financial services.
As well as the No Interest Loan Scheme, the store will offer the StepUP low interest loan and a matched savings program called AddsUP.
Ms Bettison said Good Money will also provide customers with information and referrals to other onsite services such as financial counselling and credit law assistance.
"Payday lenders and rent-to-buy schemes are far from a quick way out, with crippling interest rates leaving many people in a situation where their debt spirals out of control," she said.
"Good Money provides a trusted alternative where people can get sound advice and access to responsible products."
Good Shepherd Microfinance's programs have reached more than 170,000 people who can't access mainstream banking products.
The Good Money store is located at 58 John Street, Salisbury. Opening hours are Monday to Friday from 9.30am-4.30pm. To learn more about Good Money, visit www.goodmoney.com.au.