NILS Information SessionMoney Management

Presented by: <INSERT NAME>

Funded by the Australia Government Department of FaHCSIA for the Financial Management Resource Unit Project, produced by Matrix on Board

Test Yourself» Complete the following handout activity so you can

be sure you understand the training. » Your answers are private and for your own

satisfaction.» C:\Users\User\Documents\

PowerPointonlinetraining\Test yourself-Training-MicrosoftOfficeOnline.htm

» Cut and paste the above web address into your browser and answer the questions.

Over the next two hours we will cover:» What is NILS?» What can you buy?» Who is eligible?» How to apply?» Paperwork /

documentation required

Overview

No Interest Service Loans

WA NILS is a not for profit organisation created in response to the difficulties faced by low income households in obtaining affordable credit in order to purchase essential household items.

WA NILS provides loans of up to $1,500 without interest or charges to low income earners to purchase basic household items.

What is NILS?

Finding out information – visit the NILSwebsite which has HEAPS of informationwww.wanils.asn.au

Speak to MichellePhone: 1300 365 301 E-mail: loans@wanils.asn.au

WA NILS Contact

At present, WA NILS provides loans between $200 and $1,500 for the purchase of essential household items, predominantly but not exclusively white goods.

Refer to handout for full list.

Loans are for two items only.

WA NILS cannot help with loans for: Bond Assistance, electricity, gas or water bills, rent arrears or debts and general expenses such as food and clothing, cars and car repairs

What can you buy?

Loans are for low income earners only.

If the applicant has a Health Care Card (HCC) or pension card and their income is within NILS guidelines, they are a low income earner.

In addition to being a low income earner: » You need to have lived at your current

address for three months or more. » You need to be able to repay the loan.

Who is eligible?

» How much help to give clients? » What could you do to assist a client?» How do you encourage clients to be

independent – seek their own information and documentation?

» Stories to share about what level of help to provide.

Questions to consider

» All applications are done through a registered NILS agent. Processing time = 4-6 weeks

» Complete the following forms:» Loan application form» Loan agreement form» NILS Budget form» Centrepay authorisation form» Release of info form» Quotes form from 2 traders (valid 30 days)

How to apply?

To work out debt to income ratio, please use the following formula: DEBT divided by INCOME

DebtAccommodation $110.00+ Household $ 30.00+ Vehicle (Loan, Rego, Insurance) $ 12.00+ Current DebtsTOTAL: $152.00

So, $152.00/$755.46 = 0.201% x 100 = 20.1%NB: Maximum percentage allowed is 64%.

IncomePaid Employment $250.00+ Centrelink Payment $492.70+ Maintenance $ 12.76TOTAL: $755.46

Budget – Debt to Income Ratio?

Pair up and role play a case study – work through the application form and determine how much support to give this client. Where not provided make up information.

15 minutes

Swap pairs and use another case study to prepare a budget and / or letter of support.

15 minutes

Practice application form

Provided by applicant:Proof of IncomeProof of identificationProof of accommodation

Support documents verified by the NILS agent:BudgetBank Statement / transaction list (30 days)Letter of support

Refer to examples.

Support Documents - Checklist

» Think, Pair, Share» Think by yourself how it could be used. » Pair up and discuss in detail» Share with the rest of the group.

1. How can NILS be used as a money management tool?

2. What are other ways people can afford whitegoods?

3. What other loans have you heard of?

Final Questions

Thank you