Progress Loans gives people on low incomes access to loans of between $500 and $3,000 to pay for essential household items such as white goods.
Launched in May 2006, ANZ and the Brotherhood of St Laurence (BSL) have developed the program which provides opportunities for people on low incomes with limited access to mainstream credit take out small loans.
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| The program is in response to research commissioned by ANZ and conducted by Chant Link and Associates in 2004 into the levels of financial exclusion in Australia. The research showed that many Australians struggle to access appropriate low-cost, fair and safe financial services from mainstream providers. Around six per cent of adults have minimal access to financial services. |
| Since the research project, ANZ has been working with community partners including the BSL to improve financial inclusion in Australia. The Progress Loans program is the culmination of more than 18 months of consultation and development work to ensure that it meets the needs of people on low incomes. |
| Working with people on low incomes who have been excluded from mainstream services is something that requires care, insight and experience. The Brotherhood has been doing this for the last 76 years and is regarded a leader in its field, both in terms of operational programs as well as policy development and social research. This program has been developed after considering ANZ’s own research as well as the research released by the Brotherhood on small loans released on 31 May 2006. |
Progress Loans program aims to:
- be affordable for eligible customers with transparent fees and charges;
- be financially viable in the long term;
- effectively reach as many eligible customers as possible; and
- build a sense of dignity, empowerment and confidence among eligible customers.
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The pilot program that began in May 2006 was a success and has resulted in Progress Loans' extension in Victoria. Since Progress Loans began, 209 people have obtained credit to purchase essential household items and services – 165 this year. The majority of these people (71%) are women using the loans to purchase whitegoods (27%).
Progress Loans' credit quality and arrears are comparing well with ANZ’s overall personal loan portfolio.
In April 2008, ANZ and the Brotherhood of St Laurence were awarded the Prime Minister’s Award for Excellence in Community Business Partnerships for Progress Loans. See Media Release (PDF, 92kb).
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