Not-for-profit launches cash-loan alternative
National not-for-profit, Good Shepherd Microfinance, with the support of National Australian Bank (NAB), has launched Speckle – a fast cash-loan website which offers small loans of under $2,000 at up to 50 per cent cheaper than most other lenders.
Speckle would offer cash-loans of amounts ranging from $200 to $2,000 with flexible repayment options and half the fees compared to the market norm.
To access the loans, applicants must be over 18, an Australian citizen or permanent resident, earn more than $30,000 a year, have no more than 50 per cent of their total income come from government benefits and can’t have had two or more small amount credit contracts in the last 90 days.
The product was developed to address an increasingly casual workforce, the rising cost of living, low wage growth and a surge in the use of payday loans.
CEO at Good Shepherd Microfinance, Adam Mooney, said this is the first-time people will be able to access low cost loans.
“Speckle loans are up to 50 per cent cheaper than most other small cash loans. Most lenders charge the maximum fees allowed by law. As a not-for-profit program, Speckle is significantly cheaper for customers,” he said.
Mooney said the product will help to combat the negative impact of high cost loans on individuals and families.
“It was clear that we needed a better solution for anyone who needs to use small cash loans. Speckle will enable people to access lower cost credit when they need it most.”
NAB chief executive, Andrew Thorburn, said the bank wants to support people to improve their financial resilience and allow them to access appropriate credit.
“We know there are many people who, because of their financial situation, don’t typically qualify for mainstream finance, and are having to turn to payday loans. We’ve worked with our long-term partner Good Shepherd Microfinance to develop Speckle as a better alternative,” he said.
AUTHOR
Staff Writer
Recommended for you
Apostle Funds Management has appointed the newly created position of director, head of wholesale as the firm expands its Australian footprint in the wholesale sector.
Recruitment manager Robert Half has shared the most in-demand roles in financial services that firms are finding difficult to fill, driven by ASIC’s growing focus on risk and compliance.
ASIC chief executive, Warren Day, is among senior executives to depart the corporate regulator amid changes to its leadership team.
Iress has completed the sale of its platform business, bringing $4.1 billion in funds under administration over to Praemium.
