Good Shepherd has provided programs and support for young women and families in need in Melbourne for over 140 years.  Good Shepherd Youth and Family Service assists people of all cultural, religious and social backgrounds.  Good Shepherd Youth and Family Service promotes partnerships which reflect the agency's belief in the values and dignity of every human being.

An openness to change and innovation characterises Good Shepherd centres which are based in local communities.

The Microfinance Program is a national program within Good Shepherd Youth & Family Service.  For a complete listing of family services or for more information on Good Shepherd Youth & Family Service, view the website at http://www.goodshepvic.org.au/.

Microfinance VALUES

• Justice
• Respect
• Trust
• Empowerment
• Advocacy

Our VISION

Justice through social and financial inclusion

Our MISSION

Our services are based on justice, respect and trust. We exist to ensure financial inclusion through building capability and advocating for change in structures that diminish human rights.

Our STORY

Development of No Interest Loan Schemes

Good Shepherd Youth and Family Service has been involved in the development and expansion of No Interest Loans programs since their inception. In 1981 Good Shepherd Youth and Family Service started its first No Interest Loans Scheme in Victoria, with the funding, foresight, vision and generosity of Good Shepherd Sisters.

In seeking to assist young women establish independent living, Good Shepherd Youth and Family Service in Collingwood, Victoria offered these women no interest loans to purchase essential household items. This fair and equitable model of credit was based on a commitment to upholding individual dignity and respect with the loan payment arrangements being based on a person’s capacity to repay.

No interest loans schemes offer people on low incomes the opportunity to access credit for an essential household item without any fees, charges or interest payments. People in receipt of a health care card or a pension card or who are identified as low income are eligible to access no interest loans. As loans are repaid, the money is lent out to other members of the community to utilise this service. In an environment where access to mainstream credit for people on low incomes is limited and the fees and charges levied by fringe credit options such as pawnbrokers or payday lenders are high, these loans make a considerable difference to the nature of economic participation by families living on low incomes. A significant number of people access no interest loans to procure essential household items such as fridges, washing machines and clothes dryers. The schemes are, however, also committed to responding to a wider variety of needs. These may include the purchase of a hot water service, computer, security fence and assistance to cover essential education needs.

Development of Victorian NILS Network

By the early 1990’s, Good Shepherd Youth and Family Service had started to receive calls from individuals and community groups wanting information and advice on the No Interest Loans Scheme model. In response to this emerging interest, Good Shepherd Youth and Family Service held an information seminar in March 1993.

During this meeting the participants made a firm commitment to establish the Victorian NILS Network.

The formation of the Victorian NILS Network occurred in 1993. The Network was formed to provide a forum for facilitating the development of No Interest Loans Schemes in Victoria, including the development of policy and procedural practices for operating these programs and to provide support and information to NILS workers. The Network Co-ordinator, in close cooperation with other members guided the growth of these schemes across Victoria.

In 1994, the Network also initiated the “Common Principles and Accountability Document” which contained sound policy and procedural practices and basic standards considered important for the viability and integrity of NILS.

Development of National NILS Network

With the steady growth of No Interest Loans Schemes in Victoria, the Good Shepherd Sisters agreed to provide additional funds to allow a broader development of these schemes.

In 1995, the National NILS project was funded by the Good Shepherd Sisters for a two year period to promote the concept of No Interest Loans Schemes nationally. At the end of 1997, the Victorian NILS Network assumed responsibility for the ongoing development and coordination of this work. This project has resulted in the significant growth of No Interest Loans Schemes based on the Good Shepherd model throughout Australia. Good Shepherd regularly receives requests for information, advice, assistance and training from groups interested in setting up schemes.

The National NILS Network (NNILS) provides support to those schemes that have been accredited as NILS providers as well as those seeking to initiate a new program.

The major functions of this National Network are to:

• Oversee the Accreditation process
• Collect relevant data for monitoring, evaluation, program development and research purposes
• Act as a clearinghouse, providing resource material, information and training opportunities
• Provide support for and between the state network representatives
• To strengthen the advocacy voice of NILS