Ararat Regional Communities No Interest Loan Scheme (ARC NILS) is preparing to deliver a new program giving people on low incomes in the Ararat Rural City boundaries access to a safe, fair and equitable credit option.

These loans are interest and fee free and are available to individuals and families on low incomes.

The No Interest Loans Scheme (NILS) offers interest-free loans for up to $1000 to purchase necessary household goods and services. The loans are not for cash or for debt repayment.

Developed by Good Shepherd Youth and Family Services, NILS is the only nationally co-ordinated interest-free loan scheme currently available to low-income earners in Australia.

ARC NILS is one of more than 60 NILS programs in Victoria and over 260 Australia wide.

The ARC NILS program will be offered to people in areas including those that are within the local government area of Ararat. This is a totally volunteer-based program run by the local community for the local community. The committee has been working towards the launch of the program since July 2007.

NILS is designed to support people who are unable to access usual forms of credit from traditional lenders such as banks. It is about improving financial literacy and building assets. Examples of goods that can be purchased through the scheme include fridges, freezers, washing machine, stoves, furniture and even water tanks, as well as small appliances and household repairs.

Marlene Butler from Child and Family Services said that the organisation is proud to be able to support the roll-out of NILS in the Ararat region.

"In many cases NILS offers borrowers their first informal credit experience and can be a first step towards entry into the mainstream credit system,'' Ms Butler said.

In Victoria the program is supported by the Victorian Government and the National Australia Bank.

In 2006 the Victorian Government committed 4.7 million over four years to expand and co-ordinate the NILS program across the state, by assisting community-based organisation to become NILS providers. This funding has enabled the launch of NILS in the Ararat region.