# No Interest Loans Explained: What to Check Before Applying > How No Interest Loans (NILs) work in Australia: what they can pay for, who may be eligible, what the appointment covers and whether the repayment fits your pay. Canonical HTML: https://getclova.com/blog/no-interest-loans Clova is an Australian budgeting app. [Join the waitlist](https://getclova.com/) [Home](https://getclova.com/) → [Guides](https://getclova.com/blog) → [Life costs](https://getclova.com/blog/topic/life-costs) → [No Interest Loans Explained: What to Check Before Applying](https://getclova.com/blog/no-interest-loans) - Author: Marnix - Published: 2026-11-03 When something you rely on breaks and the money isn't there, the quickest offers tend to be the ones that add to the price. NILs is slower and asks more questions, and most of those questions are about your budget. ## What a No Interest Loan is Good Shepherd runs NILs nationally, and local community organisations take the applications. You apply for one specific essential and bring a quote for it. If the loan is approved, the money goes straight to the shop or service provider, never to you as cash. You then repay it in fortnightly amounts agreed with the provider. So it isn't free money: every dollar comes back out of your future pays. If you've used [buy now pay later](/blog/buy-now-pay-later), equal repayments over time will look familiar. With NILs, the provider works through your budget with you before agreeing the repayment. ## What it can pay for Most loans are for essentials you'd struggle to go without: a fridge or washing machine, a laptop for study or work, car repairs, furniture, or medical, dental and vet costs. Each kind of loan has its own limit. | Kind of NILs loan | Up to (AUD) | | --- | ---: | | Phones and tablets | $1,000 | | Essentials | $2,000 | | Rental bond or disaster recovery | $3,000 | Maximums on the official NILs site, November 2026. A bond loan covers the bond on a new rental, not the rent itself. If you're still adding up what a move costs, our guide to [moving out of home](/blog/moving-out-of-home) lists the rest. Loans for buying a car are a separate product with a credit check and terms of up to 48 months, so this guide sticks to the everyday kind. ## What it won't pay for NILs can't be used for cash, rent payments, existing debts, everyday bills like electricity, gas and water, groceries, petrol, holidays, council rates or fines. Those are often the costs pressing hardest, so this can feel like a door closing. For a bill or debt you can't pay, start with the business you owe; our guide to [asking for hardship help](/blog/financial-hardship-assistance) walks through what to ask for. ## Who can apply You may be eligible if at least one of these applies to you: - You have a Health Care Card or Pension Card. - You earn less than $70,000 a year before tax as a single person. - You earn less than $100,000 before tax and have a partner or dependants. - You've experienced family or domestic violence in the last 10 years. These are alternatives, so you don't need a concession card if your income is under the limit. Alongside one of them, you'll need to be 18 or over, to have lived at your current address for at least three months and to show you can afford the repayments. If you've moved recently or your housing is unsettled, ask a provider anyway, because exceptions are made in some cases. Meeting the criteria means you can apply; the provider decides whether the loan is approved. ## The appointment is about your budget You apply in a face-to-face or phone appointment with a local provider. The [official NILs site](https://nils.com.au/) has a provider finder, or you can call 13 64 57 (13 NILS). Applying through that site or a listed provider helps you avoid unrelated loan ads. The worker goes through what comes in, what goes out and any debts you already have, including buy now pay later, payday loans and rent-to-buy agreements. It isn't a test of how good you are with money. It's how they set a repayment you can keep up. To apply, you'll need: - 100 points of ID, such as a driver's licence, passport or Medicare card, with one item showing your address - recent payslips or Centrelink statements, and bank statements or banking details - an estimate of your regular expenses and the details of any debts - a quote or invoice with the date, the item or service, the supplier's details, payment details and the total including delivery Statements are enough here; nobody in the process needs your banking password. The expenses estimate is easier with real numbers than guesses. Clova, our budgeting app, puts each purchase in a category, so a few weeks of food and transport spending are there to read off when the worker asks. ## Check the repayment fits your lightest fortnight Nadia, who's made up, is 21 and studying with a few casual shifts a week. Her laptop died mid-semester, and the replacement her course needs is quoted at $1,200 including delivery. Her provider agrees a repayment of $50 a fortnight over 24 fortnights. | Nadia's laptop | Amount (AUD) | | --- | ---: | | Paid by the loan straight to the shop | $1,200 | | Her repayments: 24 fortnights of $50 | $1,200 | The $1,200 comes back, $50 at a time, with nothing added. Nadia is made up. Her term is an example; yours is agreed with your provider. That's 48 weeks of repayments, so Nadia is still paying for the laptop most of a year later. Before agreeing, Nadia can check $50 fits her lightest fortnight, the one with fewer shifts or a bill landing, not just an ordinary one. Repayments usually come out each fortnight through Centrepay, direct debit or a direct deposit, timed with your pay or Centrelink payment. If the amount suggested won't fit, say so in the appointment rather than hoping it will. A cheaper option for the same need can change the answer. If nothing fits because the whole budget is stretched, a [free financial counsellor](/blog/free-financial-counselling) can look at all of it with you. Clova is an Australian budgeting app. Join the waitlist and we’ll be in touch. [Join the waitlist](https://getclova.com/) ## When the last repayment is made The fortnight after your final repayment has $50 it didn't have for nearly a year. You can keep some going into an [emergency fund](/blog/emergency-fund), so the next thing that breaks starts with money already there rather than another application. ## A note from us Needing to borrow for an essential shouldn't make the essential cost more. Clova shows what's left until payday with the repayment already counted, so a fortnight that's getting too tight shows up while there's still time to call your provider. ## Common questions ### Will applying for a No Interest Loan affect my credit score? No. Applying won't affect your credit score, and loans for essentials or disaster relief don't need a credit check. Vehicle loans do. The provider still looks at your income, expenses and debts to set a repayment you can afford. ### How long does a NILs loan take to approve? Providers aim to process and approve applications within a week, but it varies with the provider and the application. Getting your quote and documents together before the appointment helps. ### What if I can't make a repayment? Contact your NILs provider as early as you can, before the repayment is missed if possible, to talk through your options. If other bills are piling up too, the National Debt Helpline on 1800 007 007 offers free financial counselling. ### Can I have more than one NILs loan? Not while you're behind. If you owe repayments on a current or earlier NILs loan, you'll need to catch up before applying for another. Your provider can tell you whether a second loan is possible once you're up to date. ## Sources 1. [No Interest Loans](https://nils.com.au/) · Good Shepherd 2. [NILs frequently asked questions](https://nils.com.au/faqs) · Good Shepherd 3. [No Interest Loans (NILs)](https://goodshep.org.au/services/nils/) · Good Shepherd 4. [National Debt Helpline](https://ndh.org.au/) · Financial Counselling Australia ## Related reading - [How buy now, pay later fits your budget](https://getclova.com/blog/buy-now-pay-later) - [Emergency funds: how much you need and how to start one](https://getclova.com/blog/emergency-fund) - [How much money do you have left before payday?](https://getclova.com/blog/money-left-before-payday) [Report a correction](https://getclova.com/contact) This guide explains a budgeting method in general terms; it doesn't consider your circumstances.