Pacific radio news

New initiative to help loan shark victims

By Ruci Farrell -

Vulnerable families at the mercy of loan predators charging exorbitant interest rates, can now turn to the Community Finance Initiative.

The public private scheme is a partnership between the Ministry of Social Development, BNZ and Good Shepherd New Zealand to help people in financial hardship borrow money safely.

Social Development Minister Carmel Sepuloni says Pacific health provider Vaka Tautua will deliver the CFI service to complement its work in financial literacy.

"It's about being able to provide low or no interest finance loans to our communities so they don't have to go to financial predators preying on vulnerable communities," she says.

Under the CFI people can borrow up to $5,000 with options to repay the loans on low or no interest over one year or 36-month periods.