The Josephite Foundation No Interest Loan Scheme (JFNILS) is a scheme established by the Trustees of the Sisters of St Joseph, Perthville. Its aim is to provide low income consumers, those with a Health Care or Pensioner Concession Card, flexible and affordable credit - a no interest loan - in order to purchase basic household goods and services.

Currently, the JFNILS covers the postcode areas of Bathurst, Oberon, Blayney, Carcoar, Mandurama, Lyndhurst, Lithgow, Portland and Wallerawang.

Applicants applying for a loan attend a confidential interview and assessment is based upon a person’s capacity to repay the loan. For this reason, it is necessary for applicants to provide some information and complete a fortnightly budget sheet.

Repayments are structured to suit individual circumstances. All repayments are then recycled into new loans for other borrowers.

To whom do we lend money?
People who:
• live in the postcode areas 2786, 2787, 2790, 2791, 2792, 2795, 2797, 2799, 2845, 2846 and 2847 and have lived at their current address for at least six months.
• are on a government pension, benefit or allowance and have a Health Care or Pensioner Concession card.
• can repay the loan in small fortnightly repayments of about $20.

What do we lend money for?
Essential household goods, and in some circumstances, other goods and services.

What don’t we lend money for?
• general living expenses and rent arrears
• payment of debts and other bills
• fines
• second hand furniture and goods
• items for which other agencies give assistance

How much do we lend?
In most circumstances we lend up to $800 although this depends on the goods or service being purchased.

What is the term of the loan?
Between 12 and 18 months depending on the borrower’s capacity to repay.

What information do we need from an applicant?
• a current Health Care or Pensioner Concession card
• a statement of benefit from Centrelink
• proof of any other current household income
• details of usual household expenditure, including the most recent rent receipts or mortgage statements and current gas, electricity and telephone statements or evidence that payments are being direct debited
• details of any outstanding accounts or credit commitments
• the make, model and retailer of the item to be purchased and prices from three different retailers
• information about personal and general household expenses

Who do we pay?
If the application is successful, we make the cheque payable to the retailer or supplier of the goods or services.

What are the applicant’s rights?
The information given to us in the loan application will not be made available to anyone outside the scheme without permission.

The application will be assessed solely on the applicant meeting the criteria and having the ability to repay the loan.

If the application is not granted, a reason will be given in writing.

For more information about the Josephite Foundation No Interest Loan Scheme contact:

Margaret Jones
Coordinator,
Available Tuesday/Wednesday
9.00 – 4.00

Background

The Josephite Foundation No Interest Loans Scheme (JFNILS) is an initiative of the Sisters of St Joseph, Perthville. No interest loans schemes involve the development and operation of a financial loans scheme to assist low income earners. The basic philosophy behind the provision of no interest loans is to provide low income consumers access to credit without the burden of high interest charges. The JFNILS is one expression of the Mission of the Sisters of St Joseph, Perthville.

‘We dare to walk with the poor and those without a voice with
whatever talents and resources we have…and commit ourselves
to reject any form of injustice and take action where we can.’
(Mission Statement: Sisters of St Joseph, Perthville.)

The JFNILS is a contemporary social justice initiative (not a welfare scheme) which responds to the bias in the financial sector which sees low income earners as bad risks and so denies them access to credit. Lack of access to credit for the poor was named in the Pope’s message for the World Day of Peace in 1998 as a particularly offensive form of injustice.

Through the Josephite Foundation, the Perthville Josephites have nominated an amount of their financial resources to be of service to the poor in a way that respects their dignity as persons. The funds for borrowing within the no interest loans scheme will get ‘recycled’ as participants repay their loans. Credit is only given to low income earners and only for the purchase of essential household items with a maximum amount for a loan being set at $800. No interest loans are an alternative form of credit provision and not to be confused with emergency financial assistance programs. People eligible for a loan must have the capacity to repay the loan over a 12 or 18 month period. The JFNILS is based on the philosophy that all people should have access to essential household goods.

‘It appears that such community credit schemes are capable of being
successful and viable, after an initial capital injection, provided they
are prudently planned and managed, and can provide a valuable
alternative service for low income consumers.’
(M Ryan 1993 ‘Inequalities & Low Income Debtors: Towards a Better Deal’)