No-Interest Loans in New Zealand: Supporting Low-Income Households
With the rising cost of living, many low-income families in New Zealand are facing difficult financial choices — often turning to high-interest lenders or going without essentials. To help address this, the Good Loans programme offers no-interest loan support for people on limited incomes, making it easier to manage key expenses and improve quality of life.
What is a Good Loan?
A Good Loan is a no-interest, no-fee loan designed to help low-to-moderate income New Zealanders cover essential costs without falling into high-cost debt.
These loans are safe, fair, and transparent. Funds are paid directly to the supplier or service provider, not given in cash, ensuring they’re used for their intended purpose.
What Can the Loan Be Used For?
Good Loans can be used to pay for:
Buying or repairing a car (up to $7,000)
Household essentials like a fridge or computer
Essential services, such as dental care
Debt consolidation (up to $15,000)
Combination loans for multiple needs (up to $15,000)
Who Can Apply?
You may be eligible if your annual income is below the limits shown here:
| Household Size | Annual Pre-Tax Income Must Be Below: |
|---|---|
| Single | $65,000 |
| Two-person family | $83,000 |
| Family of three | $100,000 |
| Family of four | $115,000 |
| Family of five or more | $130,000 |
Income limits are valid until 1 October 2024 and may change.
Please note: Due to high demand and current economic conditions, Loan services are presently unavailable to:
People receiving the Jobseeker Support (single)
Individuals whose sole income is from self-employment
Example Repayments
Here are some sample repayments based on different loan amounts and terms:
| Loan Amount | Weekly Repayment | Loan Term |
|---|---|---|
| $1,000 | $19.23 | 6–12 months |
| $5,000 | $48.08 | 2 years |
| $7,000 | $44.87 | 3 years |
| $10,000 | $64.10 | 3 years |
| $15,000 | $57.69 | 5 years |
Repayment terms depend on your situation and the purpose of the loan.
Additional Support
Alongside the loan, Also provided are:
Help assessing your repayment capacity
Support with debt consolidation and negotiating with creditors
Guidance on financial planning
Connections to other support services that may assist
In Summary
Good Loans are here to support low-income individuals and families across New Zealand — helping them cover essential expenses, avoid high-cost borrowing, and build financial stability with dignity and confidence.