Low-interest loan scheme for low income families

Staff Reporter

Auckland, April 13, 2018

A welfare organisation has joined the government’s ‘Community Finance Initiative’ (CFI), a scheme operated by Social Development Ministry.

‘Vaka Tautua,’ a ‘By Pacific, For Pacific’ health provider will help more Pacific people who are single parents, older, disabled and those seeking support for mental health issues to get access to loans to lift their quality of life.

Significant Partners

Social Development Minister Carmel Sepuloni said that CFI is a partnership comprising the Ministry, BNZ and Good Shepherd New Zealand, joined today by ‘Vaka Tautua.’

“CFI aims to help people in financial hardship to borrow money safely. It provides affordable credit to individuals and whanau on low incomes in the form of two loan products – a no-interest loan to be repaid over 12 months and a low-interest loan to be repaid over 36 months,” she said.

The service is delivered by the Salvation Army, Aviva and Vaka Tautua as sub-contractors.

The CFI initiative is currently available only in Auckland and Wellington, with plans to extend it to Christchurch residents shortly.

“CFI has thus far helped people on low incomes borrow $2 million, saving them more than $1 million in interest and fees they might have had to pay if they had borrowed from predatory lenders,” Ms Sepuloni said.

Application sites

Those eligible can apply to CFI at 15 sites.

They are Whangarei (Salvation Army), Waitakere (Salvation Army), Henderson (Vaka Tautua), Mt Wellington (Salvation Army), Manukau (Salvation Army and Vaka Tautua),

Hamilton (Salvation Army), Tauranga (Salvation Army), Napier (Salvation Army), Palmerston North (Salvation Army), Porirua (Vaka Tautua), Wellington (Salvation Army), Christchurch (Shiva), Invercargill (Salvation Army).

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Photo Caption:

Carmel Sepuloni

(Supplied)

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