For Kāinga Ora – Homes and Communities
Information for Kāinga Ora when referring clients to Good Shepherd NZ.
Good Loans
Good Loans are for people who can afford to make small repayments to repay a loan for an essential item.
It’s important to know that this is a loan, rather than a grant or any other type of assistance.
The ability to repay is a fundamental component of the service. Clients with complex budgets with multiple debts may be most suitable for a financial mentor referral in the first instance.
Single people receiving a job seeker benefit are currently not eligible for a Good Loan.
What are the eligibility criteria?
We can help citizens, residents, and people on work and student visas. Our clients must earn within the current income thresholds for people we can help.
| Your household: | Your yearly income (before tax) is less than: |
|---|---|
| Single | $60,000 |
| Family of two | $72,000 |
| Family of three | $84,000 |
| Family of four | $96,000 |
| Family of five | $108,000 |
| Family of six+ | $120,000 |
What can people get a loan for?
Essential items and services like:
- Second-hand cars
- Car repairs
- Dental work
- Devices
- Household appliances
- Medical costs
- Veterinary costs (own pet)
- Funeral costs
- Education
What can people NOT get a loan for?
You can’t get a loan for:
- Payment of debts or bills in arrears may only be possible as part of a debt consolidation loan
- Holiday
- Christmas expenses
- Fines or penalties
- Cash
- Visa application fees
- Church tithing
- Business purposes
- Regular and essential living expenses
- Overseas or domestic travel, except in exceptional circumstances
- Caravans and portable cabins as a dwelling (permanent homes)
When we can and can’t provide a Good Loan
We can provide a Good Loan to clients who:
- Can currently afford the basics like rent, food, power and petrol
- Are up to date with their bills and debts
- Have a small amount leftover to make repayments
How much will they need to repay?
| Loan amount and total cost | Weekly repayment | Loan repayment term |
|---|---|---|
| $500-$1,000 | $19.23 | 6 months – 1 year |
| $2,000 | $25.64 | 18 months / 1.5 years |
| $5,000 | $48.08 | 24 months / 2 years |
| $5,000 | $32.05 | 36 months / 3 years |
| $7,000 | $67.31 | 24 months / 2 years |
| $7,000 | $44.87 | 36 months / 3 years |
We can’t provide a Good Loan to clients who:
- Are looking for cash loans, or to pay family, or to go on holiday
- Are behind on their rent, power or other basics already
- Are on the Jobseeker benefit
Loan applications need to include all liabilities and consider all spending from the previous three months. These budgets are simplified to show the need for capacity to repay.
This is a budget that shows a capacity to repay:
This is a budget that doesn’t show a capacity to repay:
| Item | Amount |
|---|---|
| Income | $670 |
| Rent | $350 |
| Power | $50 |
| Food | $150 |
| Phone | $10 |
| Miscellaneous | $70 |
| LEFTOVER | $40 |
| Item | Amount |
|---|---|
| Income | $670 |
| Rent | $350 |
| Power | $100 |
| Food | $150 |
| Phone | $10 |
| Miscellaneous | $80 |
| DEFICIT | -$20 |
How the process works for the client
When someone contacts us, we have a brief conversation to outline how the process works and ensure people are eligible (income, residential).
We begin the application process by gathering documents that can provide evidence of someone’s financial situation.
We do this to meet the Responsible Lending guidelines and to make sure repaying a loan is within someone’s capacity.
The completed application is then reviewed by our lending assessment team to make sure repaying a loan is realistic and appropriate. If the loan is approved, we pay the supplier of the item directly.
Read more about Responsible Lending guidelines.
The documentation we need
We will need a range of documentation to support a client’s application. This helps us summarise their budget, including one-off or irregular income and expenses, to make sure everything is covered.
Most people provide their bank statements electronically using CreditSense, a third party online service to access and analyse bank transactions.
Read more about what to expect when applying for a Good Loan.
Read more about CreditSense.
Referring your clients for support
Clients can apply for a Good Loan by submitting an enquiry. The application is completed over the phone and using email.
For clients who require face to face support, some financial mentors can support clients to complete a loan application.
Submit an enquiry to Good Shepherd NZ.
Find a financial mentor – MoneyTalks.
Where to refer clients who aren’t yet eligible
Clients that don’t yet have the capacity to make repayments should work with a financial mentor first. Financial mentors can support people to get on top of their finances and create a surplus that would allow them to repay a loan.
Find a financial mentor – MoneyTalks
Debt solutions
We may be able to help people struggling with their debts by providing a debt consolidation loan. Clients’ will usually need to work with a Financial Mentor first.
This includes people who:
- Have high-cost debt that has become unmanageable
- Are ready to voluntarily commit to working with a financial mentor to get on top of their financial challenges
Family violence economic harm
We have a service dedicated to supporting people with economic and financial abuse, as a form of family violence. This is a small service that is oversubscribed, and most referrals usually come through family violence services. Family violence agencies are best placed to assess safety first before we begin providing financial support.
Our service can help:
- Negotiate with creditors to reduce repayments, write off debts or come up with new repayment arrangements
- Support to access family violence hardship provisions
- Advocate directly with creditors, banking ombudsman and others
- Provide a safe environment to work through the complexities of economic harm
- Help gain more financial independence and control of your finances
Find out more about our family violence economic harm support service.