Non-interest loans as a model for ethical lending

In December it was reported by Child Poverty Action Group that ethical lending schemes should be a model for adoption nationwide. They referenced Ngā Tangata Microfinance, a not for profit organisation designed as an alternative to the more merciless loan shark type models of lending companies.

Loan sharks often force families into an endless cycle of debt. Ngā Tangata Microfinance on the other hand provide no-interest loans to qualifying clients for family well-being and relief from high interest debt. A report from the organisation says this type of loan has improved people’s well being and reduced stress. It is estimated the loans have saved recipients collectively over a million dollars in interest and other charges. Lillian Hanly speaks with Robert Choy, the Executive Officer of the organisation.