Safe loans, warm homes

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For many low-income Tasmanians, purchasing energy-efficient heating and appliances is often unaffordable due to high upfront costs, interest rates, and predatory rent-to-buy schemes. 

However, the Tasmanian No Interest Loan Scheme (NILS) offers a solution. 

Established in 2002 with $300,000 in seed capital from Aurora Energy, NILS provides safe, fair, and affordable loans to low-income Tasmanians for household essentials.

With Tasmania’s average household energy usage being the highest in the country, largely due to the colder climate, access to energy-efficient appliances like heat pumps without relying on predatory lenders is essential.

NILS CEO John Hooper highlighted the initiative's role in providing financial relief and promoting economic stability within the community. 

“Each loan provides what a Tasmanian needs and at the same time ensures that they don’t have to turn to exploitative, predatory lenders as an alternative”. 

Since its inception, NILS has issued more than 45,000 interest and fee free loans totalling over $40 million. The initial loan capital has now been lent and repaid in the community at least 18 times, saving Tasmanians an estimated $10 million in predatory interest.

In fact, Aurora Energy’s initial contribution, plus an additional $2.9 million in subsidy funding by the energy retailer over 10 years has saved Tasmanians an estimated $23 million. 

Aurora Energy CEO Nigel Clark said investing in NILS allows Aurora to help customers lower their power bills by making energy-efficient appliances more accessible. 

“We know that inefficient energy use is a key driver of high power bills. Through NILS, we’re able to bring real and practical benefits to those customers most in need”.

The safe, affordable loans offered by NILS not only help Tasmanians manage their finances but also ensures they keep their homes warm and comfortable, making a significant difference in the lives of many.

Find out more at nilstasmania.org.au