Need something essential and can't cover it?
A No Interest Loan lends up to $2,000 for essentials at nought per cent, with no fees and no credit check. It is the thing payday lenders exist because people have not heard of.
$1,360
more than a No Interest Loan, is what Moneysmart says a $2,000 payday loan costs to repay over a year
What this is
A No Interest Loan covers the things that break at the wrong time: a fridge, car repairs and registration, medical and dental costs, education or work equipment, a rental bond. It is run by community not-for-profits, there is no interest and there are no fees, so you repay exactly what you borrowed and not a dollar more. The comparison is the point. Moneysmart's own figures put the total repayments on a $2,000 payday loan over one year at about $3,360, which is $1,360 more for the same $2,000, charged to the people least able to absorb it.
Does it apply to you?
- People on a Health Care Card or Pension Card, or on a low income
- Anyone facing an essential cost they cannot meet this month
- Anyone about to take a payday loan, who should make this call first
How to do it
- Work out what you need and get the invoice or quote. A No Interest Loan is not cash: the provider pays the supplier directly.
- Ring the Good Shepherd No Interest Loans team on 13 64 57, or find a local provider. There are more than 170 community organisations offering them in over 600 locations.
- Talk through what you can afford. There is no credit check, and the team assesses whether the repayments work for you rather than judging your history.
- Repay only what you borrowed. There is no interest and there are no fees or charges.
Where people lose the money
Taking a payday loan because it is faster.
Moneysmart puts the difference at about $1,360 on a $2,000 loan over a year. One phone call is worth that.
Assuming a poor credit history rules you out.
There is no credit check. The assessment is about whether the repayments are affordable now.
Paying anyone a fee to arrange one.
There are no fees. A request for one is a scam using the scheme's name.
Questions
What can I use it for?
Essential goods and services: appliances, furniture, car repairs and registration, medical and dental costs, a computer, education costs and work costs such as licences or equipment. Phones and tablets are capped at $1,000. Up to $3,000 is available for a rental bond or natural disaster recovery.
Is there really no interest?
No interest, no fees and no charges. You repay only what you borrowed, which is what makes it different from every commercial alternative.
Will it affect my credit file?
There is no credit check to get one. The provider works with you on whether the repayments are affordable.
Do I get the money in my account?
No. You supply the invoice and the provider pays the supplier directly, which is part of how the scheme keeps costs at zero.
Where these numbers come from
- Moneysmart (ASIC), No Interest Loans · read 2026-09-23
- Moneysmart (ASIC), Payday loans · read 2026-09-23
Last gone over 2026-09-23. Figures change; the link above is always the current one.
Published by Income Lab, Melbourne. Responsible for this page: Jarred Krowitz.