Interest
free loans to members
The
Australian Military Forces Relief Trust Fund provides interest-free
loans of up to $5000 for any reasonable purpose provided certain
conditions are met. If this seems too good to be true, read on.
The
interest free loans are intended to assist applicants to resolve
unexpected urgent financial problems without having to borrow
money at high interest rates or depend on consumer credit.
Applicants
should have completed at least 12 months full-time service to
be eligible for the benefit.
The
Secretary of the AMF Relief Trust Fund, Mr Peter Elliott, said
that while priority is given to members experiencing financial
hardship, the healthy financial situation of the fund means that
funds can now be made available for other justifiable purposes.
Money
can be loaned to members of the ARA who are not in financial hardship,
but would benefit from timely financial assistance to meet a requirement
that they are unable to cover from normal resources.
Mr
Elliott expressed concern that members often went into excessive
debt without being aware of the AMFRTF loan option.
“The
loan may be used for purposes such as the purchase of household
items, repayment of debts, emergency travel, legal and medical/dental
expenses as well as motor vehicle repair, home purchase expenses
and any other reasonable purpose,” he said.
The
loan is repaid over two years and must be paid out on separation
from the Army.
COs
can also arrange loans for personnel in emergencies.
“The
money can be paid straight into a member’s account and be
available to the borrower within half an hour.”
He
also explained another interest free loan that can be accessed
by members’ partners as well as members themselves.
“On
DCO’s behalf, AMF Relief Trust Fund manages loans from the
Family Financial Emergency Fund.
“Defence
families who are assessed by DCO as being in crisis or having
genuine need, can access a loan of up to $1000 interest free,
repayable over 12 months, in order to provide immediate welfare
relief and support.”
Funds
for the AMF Relief Trust Fund originally came from canteen profits
during WW2 and ASCO disbursements from 1969 to 1979.
For
more information check http://defweb.cbr.defence.gov.au/dpsa/amfrtf.htm
An
application form (FD 093) is available on the DRN. Local reps
are:
