Interest-free loans in New Zealand come from two charities, and neither is Islamic. Good Shepherd NZ lends up to $15,000 for debt consolidation or a combined purpose and up to $7,000 for a car, with no interest and no fees, funded through a BNZ credit facility and Ministry of Social Development funding. Ngā Tāngata Microfinance lends up to $5,000 through its GetControl loan, backed by Kiwibank, after three sessions with a financial mentor. In both cases you repay exactly what you borrowed, which is the economics of qard hasan. Both are income-tested, both pay the supplier directly, and both are slow by design. This page sets out eligibility, amounts, partners and application steps as each lender publishes them, and says who each is for. The wider options are on the personal financing hub.
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Good Shepherd Good Loans: what they fund and what they refuse
Good Shepherd's no-interest loans page describes Good Loans as help for New Zealanders on limited incomes to pay for essentials that improve their quality of life. Loans can be used for buying or repairing a car, buying or repairing certain other essential items such as a fridge or computer, accessing essential services such as dental treatment or study fees, and consolidating high-interest debt. They cannot be used for overdue bills or rent arrears, day-to-day living costs such as food, clothes and power, cash, travel or holidays, or urgent needs, because applications take time. The size depends on purpose: up to $15,000 for debt consolidation, up to $7,000 to buy a car, or a combined loan up to a total of $15,000. For a car, you may add your own savings to buy a vehicle worth up to $10,000, with exceptions only in special cases.
The page also lists the households it cannot help: where Work and Income can fund the purchase, where the applicant is on Single Jobseeker Support, where the only income is from self-employment, and where the household cannot afford its essential weekly expenses plus the loan repayment. On the day we checked, the page carried a notice that Good Shepherd has temporarily paused new enquiries for loans that consolidate debt, including high-interest debt, bank debt and top-ups of existing Good Loans, citing unprecedented demand and saying it reviews the pause regularly. A reader whose need is debt consolidation should read our guide to escaping high-interest debt without more riba for the alternatives while that pause lasts. Loans are paid directly to suppliers or creditors; there are no cash loans.
Good Shepherd income thresholds and what the repayments look like
Eligibility starts with household income. Good Shepherd publishes the table below as a guide, states that the thresholds are current as of 1 October 2024 and subject to change, and adds that other criteria apply. The repayment examples on the same page are the clearest demonstration that the loan is genuinely free: $5,000 over 24 months is $48.08 a week, which multiplied out returns the principal and nothing more, and $15,000 over 60 months is $57.69 a week on the same basis.
| Household | Yearly income before tax below | Example loan | Weekly repayment and term |
|---|---|---|---|
| Single | $65,000 | $500 to $1,000 | $19.23 over 6 months to 1 year |
| Family of two | $83,000 | $2,000 | $25.64 over 18 months |
| Family of three | $100,000 | $5,000 | $48.08 over 24 months or $32.05 over 36 |
| Family of four | $115,000 | $7,000 | $67.31 over 24 months or $44.87 over 36 |
| Family of five or more | $130,000 | $15,000 | $96.15 over 36 months or $57.69 over 60 |
How to apply to Good Shepherd, step by step
The service is delivered over the phone and by email, so it is not limited to Auckland, and Good Shepherd says the process is useful even if you do not end up borrowing because it connects you with a coach. The published sequence is below. Have the paperwork ready before the first call: bank statements, payslips or a Work and Income benefit breakdown, details of any debts, and current photo ID. Good Shepherd uses a service called Credit Sense to read bank transactions, and its partners page says Centrix supplies credit reports so loans are affordable.
- Complete the online enquiry form, or call 0800 466 370 if the form is difficult; Good Shepherd warns it may take a few days to call back because of demand.
- Gather bank statements, payslips or benefit breakdowns, a list of debts and photo ID, and complete identity and address verification.
- Have a phone consultation with a Good Loans coach, which Good Shepherd describes as judgement-free and focused on whether a loan is suitable at all.
- Work with the coach to build the application, which may include the coach negotiating with other creditors to reduce what you owe.
- Wait for the specialist lending team to assess affordability; the coach relays any questions and any conditions, such as car types the loan will not cover.
- If approved, sign the loan documentation, then find the car or item; Good Shepherd pays the supplier directly once it confirms the purchase meets the conditions.
- Set up automatic payments or a Work and Income redirection and repay weekly, fortnightly or monthly until the balance is cleared, contacting Good Shepherd early if you struggle.
Ngā Tāngata Microfinance: the GetControl loan and the mentor gate
Ngā Tāngata Microfinance describes itself as a small non-profit helping financially vulnerable New Zealanders, and its GetControl loan as interest-free and fee-free up to $5,000, to pay off high-interest debt you already have, to cover essential items, or for family wellbeing and asset purchases. Its examples are a fridge, washing machine, television, bedding, beds, spectacles, dental work, and school and education expenses. It does not lend for vehicles or for bank debts, and it says to contact your bank's hardship team for the latter. It calls the loan a last resort rather than an emergency fund. The debts it consolidates must carry high interest, typically 15% or higher, and if interest-bearing debts remain after a first loan, extensions are possible as long as no more than $5,000 is outstanding at any time.
The gate is the mentor. The site states that you must complete three sessions with a financial mentor before you can apply, and that Ngā Tāngata only accepts applications from budgeting services, so you cannot apply direct. Terms are 6 months, 12 months or 2 years, chosen with the mentor, and repayments are deducted from wages or Work and Income payments weekly or fortnightly; the site gives $30 a week for a $3,000 loan and $15 a week for $1,500, which again return exactly the principal. You must agree not to take on new debt during the term. Once repaid, the money is lent to the next person, and the mentoring can continue for as long as you want it.
Ngā Tāngata eligibility and income thresholds
The published conditions are that you are a New Zealand citizen or permanent resident, that you meet the income threshold, that you are eligible for a Community Services Card, and that you are willing to work with a financial mentor. The income table below is from the threshold document on Ngā Tāngata's site dated August 2025; a family in this table means one or two adults and the dependent children they care for, so a family of two is one adult and one child. For families larger than six, the limit rises by $12,065 for each extra person.
| Household | Yearly income before tax below |
|---|---|
| Single, living with others | $60,216 |
| Single, living alone | $62,216 |
| Couple, no dependent children | $83,200 |
| Family of two | $83,200 |
| Family of three | $95,265 |
| Family of four | $107,330 |
| Family of five | $119,395 |
| Family of six | $131,460 |
Partner banks and funders: who actually puts up the money
Good Shepherd's partners page names the Ministry of Social Development for operational funding, BNZ for a credit facility and lending expertise, Centrix for credit reports, Woolworths for operational funding tied to its staff, and Vero for the affordable car insurance product it offers borrowers. Ngā Tāngata's site says its loans are backed by its financial partner Kiwibank and that it is proudly supported by Kiwibank. Neither site publishes the terms between the bank and the charity, so whether interest flows at that level is not known. What is known is the contract you sign, which charges nothing above the principal. In fiqh the borrower is answerable for the borrower's contract; the lender's own funding is the lender's affair, in the same way that a shop's overdraft does not taint a customer's purchase. The fuller argument is in our verdict on whether New Zealand's zero-interest loans are halal.
The two lenders and the mosque fund, side by side
| Feature | Good Shepherd Good Loans | Ngā Tāngata GetControl | AhlulBayt Centre fund |
|---|---|---|---|
| Maximum | $15,000 combined; $7,000 for a car | $5,000 outstanding at any time | $10,000 |
| Cars | Yes, car value up to $10,000 with savings | No | Not restricted by purpose on its page |
| Who can apply | Low-income households under the income table | Citizens or permanent residents under the income table, Community Services Card eligible | Members of the centre |
| Gate | Enquiry form, coach consultation, affordability assessment | Three mentor sessions, application via a budgeting service | A guarantor providing cheques for the loan amount |
| Term | 6 months to 5 years by amount | 6, 12 or 24 months | One calendar year |
| Repayment | Automatic payment or WINZ redirection | Deducted from wages or benefit | Instalments or lump sum as agreed |
| Funder named | BNZ credit facility; MSD funding | Kiwibank | Member donations |
How these loans fit Islamic finance
Qard hasan is a loan in which the borrower returns exactly what was lent. Any benefit to the lender that is stipulated in the contract turns the loan into riba; a gift from the borrower afterwards, freely given and never required, does not. Both charity loans satisfy the first test on their published terms, because there is no interest and no fee. Check the terms and conditions document for any default or dishonour charge before you sign, since the loans page describes the product as no-interest and fee-free but we did not read a full fee schedule. The AhlulBayt Centre fund states the gift principle expressly in its own terms, and a borrower from either charity who later donates to it is doing the same thing.
Two Muslim-specific points. Good Shepherd's mission statement is about women, girls and their families, but its loans page defines eligibility by household income and purpose, not gender, so a man on a low income is within the published criteria. And neither charity asks why you refuse interest, so you do not need to explain your religion to qualify; you need to meet the income table and show the repayment is affordable. For a Muslim who would otherwise have reached for a credit card or a high-cost lender, these are the first two doors to try, ahead of the certified but costlier murabaha route described in our halal personal loans overview.
Who should choose what
If you need a car, are on a low income, and are not on Single Jobseeker Support or wholly self-employed, apply to Good Shepherd: it is the only no-interest route to a vehicle in New Zealand, capped at $7,000 of loan and $10,000 of car, and the process starts with its enquiry form. If your problem is a high-interest debt under $5,000 or an essential item, and you are willing to sit through three mentoring sessions and apply through a budgeting service, go to Ngā Tāngata Microfinance. If you are a member of the AhlulBayt Centre and have a guarantor, its fund is faster and purer than either.
If your income is above both tables, neither charity will lend to you, and the honest answer is that the halal routes left are saving, family qard hasan, or EFCO's murabaha at a price; use our matching tool to see which applies. If you need money this week, none of these will help, because all three say so themselves. Facts checked against goodshepherd.org.nz, ngatangatamicrofinance.org.nz, ahlulbayt.nz on 8 September 2026.
Frequently asked questions
Are Good Shepherd loans really interest-free?
Yes, on the published terms. Good Shepherd describes Good Loans as no-interest and fee-free, and its repayment table confirms it: $5,000 over 24 months at $48.08 a week returns the principal and nothing else. Loans are paid directly to the supplier or creditor, never as cash, and are capped at $15,000, or $7,000 for a car.
How much can I borrow from Ngā Tāngata Microfinance?
Up to $5,000 through the GetControl loan, with no interest and no fees, repaid over 6, 12 or 24 months by deduction from wages or a benefit. Extensions are possible if high-interest debts remain, provided no more than $5,000 is outstanding at any time. It does not lend for vehicles or bank debts.
Do I need to see a budget adviser before applying for a no-interest loan?
For Ngā Tāngata, yes: three sessions with a financial mentor are required and applications are accepted only from budgeting services. For Good Shepherd, the process itself includes a phone consultation with a Good Loans coach, and it refers people who are not ready for a loan to a MoneyTalks financial mentor.
Can I get a Good Shepherd loan to buy a car for work?
Yes, buying or repairing a car is a listed purpose. The loan is capped at $7,000 and the car at $10,000 including your own savings, with exceptions only in special cases, and Good Shepherd may exclude car types that are expensive to maintain. You must be under the income threshold for your household, and Good Shepherd pays the dealer or seller directly.
Is a loan from a secular charity halal for a Muslim?
On the borrower's side, yes: you repay only what you borrowed, which is the definition of qard hasan, and the lender's religion does not change the contract. The banks behind each charity provide funding on terms that are not published; that arrangement is the charity's, not yours. Check the terms for any default charges and avoid stipulating any gift.
Compare providers in your region
See side-by-side comparisons of Shariah-compliant products, or let our matcher recommend the best options for your situation.
What if my income is above the thresholds?
Neither charity will lend. Good Shepherd's table tops out at $130,000 for a family of five or more and Ngā Tāngata's at $131,460 for a family of six, plus $12,065 for each further person. Above those, the halal routes are saving for the purchase, an interest-free loan from family, or EFCO's murabaha, which is certified but carries a disclosed mark-up.
