diff --git a/CHANGELOG.rst b/CHANGELOG.rst
index 8f6bd52..3d76251 100644
--- a/CHANGELOG.rst
+++ b/CHANGELOG.rst
@@ -9,6 +9,7 @@ unreleased
 * Removed useless console_script entry point.
 * Changed loader detection to only consider the final extension in a filename.
 * Support and test egg specifications with no named entry point (because it's 'main').
+* Support basic interpolation (``here`` and ``__file__``) in the built-in INI loader.
 
 0.2.0 (2015-06-14)
 -----------------------------------------
diff --git a/src/montague/ini.py b/src/montague/ini.py
index d7d7390..d137ddc 100644
--- a/src/montague/ini.py
+++ b/src/montague/ini.py
@@ -35,6 +35,10 @@ def __init__(self, path):
 
     def _read(self):
         # We need to keep the parser around so the logging conversion can use it.
+        path_defaults = {
+            'here': os.path.dirname(self.path),
+            '__file__': self.path,
+        }
         self._parser = SafeConfigParser()
         self._parser.read(self.path)
         self._globals = self._parser.defaults()
@@ -45,7 +49,7 @@ def _read(self):
                 if option in self._globals:
                     continue
                 try:
-                    section_data[option] = self._parser.get(section, option)
+                    section_data[option] = self._parser.get(section, option, vars=path_defaults)
                 except InterpolationError:
                     section_data[option] = self._parser.get(section, option, raw=True)
         return data
diff --git a/tests/config_files/simple_config.ini b/tests/config_files/simple_config.ini
index 55926fb..6baaa9f 100644
--- a/tests/config_files/simple_config.ini
+++ b/tests/config_files/simple_config.ini
@@ -3,6 +3,8 @@ foo = bar
 
 [application:main]
 use = package:montague_testapps#basic_app
+ini_dir = %(here)s
+ini_file = %(__file__)s
 
 [application:egg]
 use = egg:montague_testapps#other
diff --git a/tests/test_ini_handling.py b/tests/test_ini_handling.py
index 00c433b..ff45a07 100644
--- a/tests/test_ini_handling.py
+++ b/tests/test_ini_handling.py
@@ -22,7 +22,11 @@ def test_read_config():
             'foo': 'bar',
         },
         'application': {
-            'main': {'use': 'package:montague_testapps#basic_app'},
+            'main': {
+                'use': 'package:montague_testapps#basic_app',
+                'ini_dir': ini_dir,
+                'ini_file': ini_path,
+            },
             'egg': {'use': 'egg:montague_testapps#other'},
             'filtered-app': {
                 'filter-with': 'filter',