Bank scheme helps those most in-need

By Wepiha Te Kanawa

It's the Government's answer to keeping Kiwis out of debt by providing low or no-interest loans to people on low incomes.

Head of Māori business of BNZ Pierre Tohe says the biggest downfall for Māori around getting a loan is their urgent need of money and not thinking through the implications of that.

However, Josephine Bartley from the Ministry of Business, Innovation and Consumers say some are missing the bigger picture.

According to Josephine Bartley, “They will still go for it because they only see that weekly repayment they dont see the full amount that they pay back.”

Changes to the current credit law which is before Parliament will give borrowers far more protection when borrowing money. 

The BNZ bank is hoping to release full details and criteria of the new loan scheme in the next few weeks.