No-interest loans
Good Loans are designed to help New Zealanders on limited incomes pay for essentials that improve their quality of life.
Our Good Loans service
Some women on low incomes can be forced to take on high-cost debt to pay for essential expenses, or go without.
Our no-interest, fee-free loans can help people pay for essential expenses and manage or avoid high-cost debt.
Loans can be used for:
- buying or repairing cars
- buying or repairing other essential items, eg fridge or computer
- accessing essential services, eg dental treatments.
- debt consolidation.
The size of the loan available depends on how it will be used. For example, up to $15,000 for debt consolidation, up to $7,000 to buy a car, or a combined loan up to a total of $15,000.
We always look for ways to reduce a client’s debt while we assess whether a loan is affordable. As part of this we might work with other creditors on behalf of the client to negotiate debt reductions, like lowering the amount owed on high-cost debt. We also help with planning and provide some financial coaching related to loan payments. We might also connect clients with other available support.
For people with limited income
Good Loans help New Zealanders on low incomes to improve their quality of life. They are safe, fair and affordable.
You might be able to apply for a no-interest loan if your yearly income is less than the amounts listed in the table below. This is a guide only. Other criteria also apply.
| Your household | Your yearly income (before tax) is less than: |
|---|---|
| Single | $65,000 |
| Family of two | $83,000 |
| Family of three | $100,000 |
| Family of four | $115,000 |
| Family of five or more | $130,000 |
* These household thresholds are current as of 1 October 2024 and are subject to change.
This table shows possible repayments for Good Loans over different terms.
| Loan amount and total cost | Weekly repayment | Loan repayment term |
|---|---|---|
| $500-$1,000 | $19.23 | 6 months – 1 year |
| $2,000 | $25.64 | 18 month/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 |
| $8,500 | $54.49 | 36 months/3 years |
| $10,000 | $64.10 | 36 months/3 years |
| $12,500 | $80.13 | 36 months/3 years |
| $12,500 | $48.08 | 60 months/5 years |
| $15,000 | $96.15 | 36 months/3 years |
| $15,000 | $57.69 | 60 months/5 years |
Repayments are examples only. The size of the loan available depends on how it will be used. For example, up to $15,000 for debt consolidation, up to $7,000 to buy a car, or a combined loan up to a total of $15,000.
Good Loans are for approved purchases only and are paid directly to suppliers/creditors — no cash loans. Criteria apply.
If you’re not ready for a loan, get in touch with a financial mentor at Money Talks.
How Good Loans work
These are the steps to go through to apply for a Good Loan. Our service is delivered over the phone and by email.
If a loan isn’t right for you at the moment, this process is still very helpful — it connects you with a coach who can help you better understand your financial situation and options.
1. Get in touch
Use the enquiry form to tell us a bit more about your situation so we can see if we’re the right people to help. The form helps us give you answers as soon as possible.
If you have trouble with the online form, you can call 0800 466 370. Because a lot of people get in touch, it might take a few days for us to call you back.
2. Get ready for our first meeting
We’ll ask you to gather some information to help us get ready for our first phone meeting. Having things like bank statements, payslips or Work and Income benefit breakdowns, information about any debts you have, and current photo ID helps us give you the right support as soon as possible.
Our Credit Sense page has more information about how bank statements are used.
There are a few ways to verify your identity.
3. Get guidance from a Good Loans coach
Speak with a Good Loans coach by phone for a judgement-free consultation focused on understanding your situation and figuring out if a loan is suitable.
This conversation is worthwhile even if you don’t apply for a loan. Your coach will share financial expertise, help you understand available options, connect you with other appropriate support, and give you things to consider in your decision making.
Through this conversation, we can help figure out your right next steps — which might or might not involve applying for a Good Loan.
4. Work with a Good Loans coach to apply for a loan
If you’re applying for a Good Loan, your coach can support you along the way. They might help you work with other organisations to reduce your debt, work through your budget, create a payment plan, and put a full loan application together.
Our Good Loans team will help figure out the right next steps for you. They might support you to reduce your debts with other organisations, work through your budget, create a payment plan, and put a full loan application together.
5. Have your application assessed
Your Good Loans coach will submit your application for assessment. Our specialist lending team will consider your application and make sure your loan payments are affordable.
The team might need extra information during this step. Your Good Loans coach will let you know if there are any questions.
6. Get an answer
Your Good Loans coach will come back to you about whether your loan was approved.
They will let you know about any special conditions of the loan. For example there might be types of car it won’t cover because they are more expensive to maintain, we might need more information from you, or you might need to reapply after you make financial changes to be sure your loan is affordable.
If your loan is approved, we’ll send loan documentation as part of this step. You will need to sign it to access the loan.
7. Look for the right car or item
Once you have a loan approved and understand the conditions, you can head off to find the right car or item for you.
If your loan is for a service and you already have an estimate, or if your loan is for debt consolidation, this step won’t apply. We might have helped you to agree costs earlier in the loan application process. We’ll talk with you about the next steps.
8. Access the loan and set up your repayments
To set up your loan, Good Shepherd pays the supplier of the service or item directly once we know the conditions are met.
If your loan is for a car or other item, you’ll need to tell us what you’ve chosen. If we’re sure it fits with your loan criteria, we will pay the supplier.
Once your loan is created, you’ll need to set up your automatic payments or WINZ redirections.
9. Make payments
You’ll make regular payments to Good Shepherd until your loan is repaid. You can choose to pay weekly, fortnightly, or monthly.
If you’re having trouble making payments, get in touch. We always try to help.
10. Repay your loan
Once you make your final payment, you’re all done. You’ve met this financial obligation and money from your repayments will be available for other things.
These pages can help you prepare information and answer questions as we work through the Good Loans application process.
Client stories
See some of the ways our services have helped people.
