The Government is launching a partnership with the Bank of New Zealand, the Salvation Army and Good Shepherd New Zealand, a Catholic Charitable Trust, to provide people on low incomes with sustainable credit.
Social Development Minister Paula Bennett said poor people are tempted by easily available credit.
She said the scheme offers those people credit with transparent and low fees.
The Bank of New Zealand is committing $10 million for up to five years to the scheme, which Ms Bennett says offers people a real alternative to loan sharks.
The Good Shepherd Trust has already formed a partnership with KiwiBank which it says is active in supporting the establishment and growth of No Interest Loan Scheme (NILS).
The Good Shepherd New Zealand Trust is an initiative of the Good Shepherd Sisters.
It was established in 2012 to assist marginalised and economically disadvantaged people (women and children).
The initial capital of $5 million came from the subdivision and sale of property the Good Shepherd Sisters owned in Christchurch.
The Trust is connected with the Good Shepherd Network in Australia.
The Network includes Good Shepherd Microfinance (Australia’s largest microfinance organisation) which runs No Interest Loans Schemes (NILS) and other programs in partnership with the Government, NAB and community organisations.
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