What is NILS®?

NILS® is a community-managed small loan program developed by the Good Shepherd Youth and Family Service which provides interest-free and fee-free loans to low income earners. The loans can be used to purchase essential household or medical goods and services.

NILS® schemes are run by community organisations with limited funds to lend, so each one operates in a certain area – sometimes only a few suburbs. When you are checking for the address of your nearest NILS®, also ask whether your suburb or town is covered by that NILS® scheme.

Who can apply?

To apply you must:

• be in receipt of a Centrelink health care or pension card or qualify for a pension or health care card

• be able to show you can repay the loan within 12-18 months.

How much can I borrow?

You can apply for a loan up to around $1000. The average loan provided is around $700.

What can I spend a NILS® loan on?

You can use NILS® loans to:

• buy essential household goods which have broken down and cannot be repaired, such as a washing machine or refrigerator
• pay for urgent medical or dental services
• pay for car repairs, but usually loans for car repairs are limited to those in areas where there is little or no public transport.

NILS® loans cannot be used to pay:

• bond or rent fees, including unpaid rent
• bills or other existing debts, food or other needs which can be met through various voucher schemes or emergency relief. 

How do NILS® loans work?

Your local NILS® provider will assess your needs and come up with a repayment plan that suits you, without adding stress to your budget.

Generally, once a loan is approved, you will need to sign a loan agreement and a Centrepay deduction authorisation. NILS® will then issue a cheque to the retailer and your chosen appliance or product will be delivered to your home.

Why consider a NILS® loan?

NILS® loans have a number of advantages:

• They are interest and fee-free and have generous terms, but they are not charity.
  You must repay the loan.
• Borrowing money from other lenders can cost you a lot more and put you in a much worse financial situation.
• The NILS® providers work with you to find the arrangement that works best for you. 
• Dealing with a NILS® service is free and confidential. They treat you with dignity and respect.
• Essential goods purchased with a NILS® loan are brand new.

Can I get more than one NILS® loan?

You can only take out one NILS® loan at a time. However, when you have fully repaid it, you may apply for another one.

Where can I find a NILS® service?

There are around 34 NILS® providers currently operating in NSW. NILS® providers are community-based organisations such as Neighbourhood Centres or local faith-based organisations. Contact Fair Trading on 13 32 20 for your nearest NILS® provider.

What if I don’t qualify? 

If you are not eligible for a NILS® loan or have other credit and debt issues, contact Fair Trading on 13 32 20 for further help and assistance.

Fair Trading may be able to give you some other options, such as talking to a free and confidential financial counsellor about how to get your finances sorted.

Indira’s story

Indira’s washing machine broke down and couldn’t be repaired. She couldn’t afford a new one and had been doing all the family’s washing in the bath tub for a month, when she contacted a NILS® Service. 

The NILS® provider worked out a repayment plan for Indira. She chose a washing machine from a catalogue that was in the price range available under the NILS® loan and the washing machine was delivered to her home. 

Indira is close to making her final repayment and is very pleased with the way she was treated. She is thrilled that soon she will own the new washing machine as everything else she has is second hand.

Phil’s story

Phil needed a new bed for his invalid partner.  As he was on a disability pension, he couldn’t afford to buy it and he already had some other debts. 

He visited his local NILS® service provider to see if he could get an interest free loan. Working with the NILS® officer, it turned out that Phil couldn't afford the NILS® repayments with his current budget.

However, the NILS® officer worked out a plan for Phil to reduce his debts and Phil will soon be in a better financial position to come back to NILS® to apply again.