Widening of loan scheme offers alternative to loan sharks

Minister for Social Development Carmel Sepuloni has today announced the widening of a low-interest loan scheme for people who might otherwise fall victim to loan sharks.

Today “by Pacific for Pacific “ health support service provider Vaka Tautua has joined the Ministry of Social Development’s Community Finance Initiative (CFI).

“CFI is a partnership between the Ministry, BNZ, and Good Shepherd New Zealand that aims to help people in financial hardship to borrow money safely,” Ms Sepuloni said.

“It provides affordable credit to individuals and whānau 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 re paid over 36 months.

Three sub-contract providers deliver the service – the Salvation Army, Aviva and now Vaka Tautua.

“Vaka Tautua is the third provider to join the CFI, providing low-interest loans in Auckland and Wellington – and is looking to extend this service to Christchurch,” said Ms Sepuloni.

“Vaka Tautua will help more Pacific people who are single parents, older, disabled or seeking support for mental health issues get access to loans that will lift their quality of life. 

“Already the CFI has 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’d borrowed from predatory lenders.”

 Editors notes:

 People can apply for an affordable loan through CFI at 15 sites around New Zealand – see table below:

Media contact: Amanda Snow 021 282 0078