The money will go directly to the owner or the utility company.
“People who have never had to ask for help before are facing difficult times,” Megan McAlpine of Good Shepherd Microfinance told 9News.
“It’s really handy after you’ve exhausted all of the other relief options out there.”
The $ 3,000 Household Relief Loan requires people to meet various eligibility criteria: you must be at least 18 years old and have an annual income of less than $ 60,000 before tax as a single person, or less than 100,000 $ for couples.
You will also need to prove that you have lost your job, that your income has been reduced, or that you have been financially affected by COVID-19.
Canstar financial expert Steve Mickenbecker says that while all debt comes at risk, this latest helping hand is a safer alternative to using payday loans.
“The interest free loan can get them out of trouble with these super high fee payday loans. They don’t want to go if they can avoid it,” he said.
“Although the electricity providers also offer hardship relief, eventually you have to pay it back, so it can help you when you reach the end of this support. “
It can also be used in conjunction with Good Shepherd’s interest-free loan program, which offers up to an additional $ 1,500 to pay for essentials like car repairs and medical care.