Progress Loans - Corporate Responsibility

Progress Loans

Real Action on Financial Inclusion

Progress Loans gives people in Victoria, Australia, on low incomes access to loans of between $500 and $3,000 to pay for essential household items. It is a joint program of ANZ and the Brotherhood of St Laurence.

The Progress Loans Story

The Progress Loans program was launched in May 2006 in response to ANZ-commissioned research conducted by Chant Link and Associates into the levels of financial exclusion in Australia.

The research showed that many Australians struggle to access appropriate low-cost, fair and safe financial services from mainstream providers - meaning they either go without, or resort to credit on unfavourable terms from non-mainstream providers. Find out more about the research.

Since the research project, ANZ has been working with community partners including the Brotherhood of St Laurence to improve financial inclusion in Australia. The Progress Loans program was the culmination of more than 18 months of consultation and development work to ensure that it met the needs of people on low incomes.

How It Works

The Progress Loans program aims to:

be affordable for eligible customers with transparent fees and charges
be financially viable in the long term
effectively reach as many eligible customers as possible
build a sense of dignity, empowerment and confidence among eligible customers

To be eligible for a Progress Loan, applicants must have a Health Care Card or Pension Card issued by Centrelink, have lived in the same residence for more than six months, and be up to date with utility bills and rent.

Since Progress Loans began, the program has helped hundreds of people on low incomes in Victoria, Australia, obtain credit to make essential household purchases. Progress Loans' credit quality and arrears are comparing well with ANZ's overall personal loan portfolio.

Case study: "It makes me feel responsible"
Meg is 55 years old and lives in public housing in Melbourne. She has a casual job but, like many people on a low income, finds it very difficult to cope with unexpected expenses. Progress Loans have allowed Meg to buy essential household items like a fridge, and have increased her sense of inclusion in mainstream society: "Without this loan I couldn't have the things I've got. The $50 [repayment] doesn't bother me one bit. I can manage fine. But I couldn't pay $1000 at once. Every time I get my pension I leave the money for the loan there for the bank. It makes me feel good and it makes me feel responsible as a person."

Case study: "It makes me feel responsible"

Meg is 55 years old and lives in public housing in Melbourne. She has a casual job but, like many people on a low income, finds it very difficult to cope with unexpected expenses. Progress Loans have allowed Meg to buy essential household items like a fridge, and have increased her sense of inclusion in mainstream society:

"Without this loan I couldn't have the things I've got. The $50 [repayment] doesn't bother me one bit. I can manage fine. But I couldn't pay $1000 at once. Every time I get my pension I leave the money for the loan there for the bank. It makes me feel good and it makes me feel responsible as a person."

Progress in 2008

More than 300 Progress Loans were approved during 2008 exceeding our target for 2008. The majority of people receiving a Progress Loan are women (64%), and the most common items purchased are cars (28%).

In April 2008, ANZ and the Brotherhood of St Laurence received the Prime Minister's Award for Excellence in Community Business Partnerships for Progress Loans. See the Media Release about the Award (PDF 72kB).

Progress Loan-Purpose of Loans

Progress Loans general metrics	2008	2007
Number of locations	3	2
Total applications	403	301
Total approved	322	209
% approved	79%	69%
Number of loans drawn	294	179
Lending total	624,064	-
Average loan size	$2,130	$1,722

The future

The full evaluation of the pilot program will be released towards the end of 2008. In the meantime, ANZ has committed to approving a further 300 Progress Loans in 2009.

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