Senator Nick Sherry, Minister for Superannuation and Corporate Law, has today launched the StepUP low interest loan program in Tasmania, which is designed to help vulnerable, low income people escape the cycle of debt.
"Access to basic financial services and affordable credit is essential to addressing financial disadvantage."
"Unfortunately, there are many Australians who find themselves excluded from mainstream financial services. Financial exclusion has significant impacts on individuals and families and this flows through into the wider community."
"I believe programs like StepUP can improve the lives of those who participate, by empowering people to help themselves, thus breaking the cycle of disadvantage."
"StepUP can help to break the cycle of debt for vulnerable, low income individuals and can also help address circumstances where low income people often pay more to meet their credit needs," Minister Sherry said.
In Tasmania, the StepUP Program is a partnership between National Australia Bank (NAB), the Good Shepherd Youth and Family Service (GSYFS) and the Tasmania NILS Network, with the assistance of The Salvation Army.
"StepUP is also an example of a positive corporate-community partnership that builds on the skills and services within the community," said Minister Sherry. The program will be available in Hobart, Burnie and Launceston.
StepUP was initially launched in Melbourne in March 2004. To date, more than 6,000 financial conversations about budgeting and accessing appropriate financial products and services have taken place Australia-wide, resulting in over 1,200 loans. Step UP loans are offered from $800 up to $3,000 at a rate of 3.99% in line with recent interest rate cuts.
Loans are primarily taken out for items such as car repairs, second hand cars, solar panels, water tanks, furniture, house maintenance and repairs, medical/dental expenses, vocational education costs and airfares (refugee family reunion). Individuals are supported by community microfinance managers who help them to examine their needs, understand their financial situation, and develop the skills to use mainstream financial services.