Even not-for-profit organisations are now going into lending. Backed by NAB, non-profit Good Shepherd Microfinance has ventured into online lending with the launch of a small cash loan platform called Speckle.
Speckle promises to offer a better alternative for people seeking cash loans under $2,000, with fees and costs kept as low as possible.
Good Shepherd Microfinance said yesterday that it developed Speckle in response to a growing number of households that use payday loans to make ends meet.
CEO Adam Mooney said the platform is different from anything else in the market.
“In most cases, Speckle loans are up to 50% cheaper than other small cash loans. Most lenders charge the maximum fees allowed by law. As a not-for-profit program, Speckle is significantly cheaper for customers,” he said.
“It was clear that we needed a better solution for anyone who needs to use small cash loans."
Building on their long-term partnership, NAB and Good Shepherd Microfinance worked together to develop Speckle using technology and with the help of volunteers from the bank.
NAB CEO Andrew Thorburn
said the bank shares Good Shepherd Microfinance’s mission to create fair and affordable financial products that address gaps in the market.
To be eligible for a Speckle loan, applicants must be over 18, earn more than $30,000 a year (not inclusive of government benefits), and cannot have had two or more small amount credit contracts in the past 90 days.
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