For more information and frequently asked questions about StepUP
What is the interest rate for StepUP loans- and how does it differ to standard personal loans?
What will microfinance workers ask applicants?
Can people make a joint loan application?
What are the StepUP loan periods?
How do StepUP loans differ from ‘NILS” – the No Interest Loans Scheme?
What benefits does StepUP offer?
Do applicants have to be an existing NAB customer?
What is the interest rate for StepUP loans- and how does it differ to standard personal loans?
StepUP Loans are offered at a basic interest rate of 3.99% per annum (comparison rate 3.99%*) fixed for the term of the loan. In contrast, interest rates for personal loans offered by banks currently range from about 10 – 14% per annum.
What will microfinance workers ask applicants?
- What they would like the loan for
- What type of income they receive
- Details of their housing arrangements (eg rent/own/with dependants)
Can people make a joint loan application?
Yes. If people are making a joint loan applicaton, both parties will need to attend the interview appointment with the microfinance worker.
What are the StepUP loan periods?
Loans may be taken out for six months to three years. Repayments are flevible and can be made weekly, fortnightly or monthly.
How do StepUP loans differ from ‘NILS” – the No Interest Loans Scheme?
NILS are small loans of up to $1200 with no interest or charges for people living on low incomes to purchase a single essential household item or medical appliance.
StepUP loans can be for up to $3000, with low interest – and may be used for multiple goods or services. both StepUP loans and NILS involve the advocacy, education and support role of the microfinance worker.
What benefits does StepUP offer?
- StepUP can help a low income family or individual to address a particular need based on a financial strategy that is achievable, with an affordable low interest loan rate
- Microfinance workers working at associated community groups offer support and guide people through the StepUP loan process
- Applicants are take seriously and will not be judged due to their low literacy levels or inability to work out a budget
- For many applicants, StepUP provides an alternative to loan sharks, pawn brokers and pay day lenders
- StepUP can help recipients to regain confidence in mainstream banking
Do applicants have to be an existing NAB customer?
No. However if someone accepts a StepUP Loan and is not a NAB customer, they will need to complete a 100 point identity check. This requires ID evidence to reach a minimum of 100 points.
