To their credit: evaluating an experiment with personal loans for people on low incomes

This study evaluates the Brotherhood of St. Laurence and Community Sector Banking’s personal loan pilot.

This program, trialed across Melbourne, provided small personal loans ($500 to $2000) for people on low incomes to purchase household goods and services. An aim was to identify the barriers to credit for these consumers, and to advocate ways to overcome these barriers. On a small scale, the pilot highlighted the creditworthiness of a group of people on low incomes.

For many participants, obtaining a loan was not only about money, but also about dignity and inclusion. The report recommends that the private sector, community organisations and government should work together to improve access to the mainstream credit market for people on low incomes.