For many people on low incomes an unexpected bill or needing to replace a dying fridge can put a lot pressure on limited finances.

But thankfully there is help at hand.

Mary McKillop Today’s No Interest Loan Scheme is an alternative form of credit available to local income earners to help them purchase essential household items and services — all without accruing any interest and absolutely no fees attached.

“So you buy a fridge with us for $849 and that's what you pay back,” said Peter Saville, financial inclusion officer with Mary McKillop Today in Orange.

The scheme was set up way back in 1981 by the Good Shepherd Sisters as a helping hand for people who are financially disadvantaged and to help eliminate excessive interest being charged by lease-to-buy programs.

That same $849 fridge purchased through a lease-to-buy company could cost $3,700 over a 48-month payment period with accruing interest.

To be eligible for the no interest loans you must be a Centrelink Heath Care Card holder, a Pensioner, or earn less than $45,000, or less than $60,000 per couple.

“So even a young apprentice might need a new fridge to move into a flat on their own and they can come and apply for a no interest loan, get a fridge, a washing machine and get themselves started, even get some tools if they want too,” said Peter.

“You pay back the loan over a twelve-month period. So if you borrow up to the maximum of $1,500, roughly that comes back at about $57 a fortnight. It becomes affordable then, it is not a huge chunk, and people don't then miss a complete fortnights' rent or food or gas or electricity.”

NO interest loans are commonly used to buy household appliances like new fridges, washing machines or televisions. But they can even be used to pay off medical or dental bills and even CTP Greenslips.

“There are people on Jobseeker that just aren't able to afford that $550 in one hit to get the car registered and on the road,” said Peter. “But they can come and see us and we can do a $550 loan over a 12 months period which is $30 a fortnight roughly and they pay that off and it’s affordable.”

Peter said he has also approved loans to have a much-loved companion dog buried, and to purchase a sleep apnoea machine.

Peter can also help people apply for a low-interest StepUP loan through the National Bank. These loans allow people to borrow up to $3000, which can be used to buy a vehicle or other expenses that are not covered by the no interest loan scheme.

For more information, you can contact Peter on 0427 170 595 or email orange@marymckilloptoday.org.au