Findings of “National Traveller MABS Supported Caravan Loan Guarantee Scheme”
The National Traveller MABS Caravan Loan Guarantee Scheme was designed to enable Travellers to access loans at reasonable rates from their local credit union for the upgrade, repair or replacement of a caravan that served as a family home.
The findings of our review demonstrate that people on low incomes are credit-worthy. The default rate for this particular scheme was less than five per cent. Its success can be attributed to the partnerships established between local credit unions and MABS, the provision of money management advice to borrowers in addition to credit; easy repayment methods with deductions being taken directly from the borrower’s social welfare payment; and the option for borrowers to build savings in the Credit Union while making repayments.
Importantly, there is evidence of people being enabled through this scheme to become independent in terms of accessing loans from the Credit Union in their own right – without the need for further guarantees. There was also a noticeable knock-on effect within the Traveller community: those who availed of the scheme were inclined to recommend it to their peers and to inform them of the wider range of services available through MABS. To view the report, please click here.