Whilst this program is specific to Australians, most countries have similar services for low income earners and those on welfare. Check with your government or reputable non-profits in your area to see what’s available.

When it comes to lending programs that provide genuine low rate affordable loans for low income earners, then the StepUP plan is the one. Borrowers are offered low interest loans that don’t need to be completely paid off for three years. You can borrow anywhere from $800 to $3,000. Use it to pay important medical expenses, bills or even replace broken down appliances. It will bring resolution to some of the more serious financial issues you might be facing. It can eliminate an eviction, stop a repossession of your car or get some much needed food in the house.

Qualifications and Application Process

You do need to have an income in order to qualify for a StepUP loan, but it doesn’t have to be a high income. These are geared specifically to borrowers that don’t make a lot of money. You’ll have to demonstrate that you have enough income to repay the loan, but since the payments are spread out over three years, they are really small. The application process for the StepUp loan requires a traditional interview process that is important for borrowers to experience. The sooner lower income individuals understand how the whole lending process works, the more successful they will be at lending in the future. You can also qualify if you are on Centrelink in combination with some form of steady work.

What Can it Be Used For?

There aren’t any big stipulations on what the money has to be used for. Many recipients get computers, make car repairs, pay medical bills, and other debts, get dental work done, buy food or a myriad of other things. Some have used it to help pay for equipment and needed items for small businesses. The interest is lower than any other type of loan available on the standard lending market. It’s used mostly as a training camp for borrowing money in the future from more traditional lenders. You’ll know exactly what to expect.

Repayment

Repayment of the loan is the goal. By keeping the payments and interest low, there is very little chance that the loan can’t be successfully repaid. It gives the borrower added confidence in finances and the lender can then loan the monies out to another person. The repayment process is the best opportunity to begin to instill good repayment habits. Financial responsibility and good spending and borrowing habits go hand in hand. Many times it has to be learned behavior and a StepUP loan is perfect for this. 

Benefits to Borrower and Society

The obvious benefits to the borrower surround the fact that they will have their need for money taken care of, at least for a brief moment in time. The family can benefit from needed services, items or relief from creditors. It can train even the toughest of individuals about the importance of living within a budget so that they can make their payments and stand a chance of borrowing again in the future. The StepUp program might be the only real experience that some borrowers have had with interest bearing loans.  Remember, if the need for borrowing arises, don’t forget that this program is available to help.