Launch of £15 million Scottish Community Lenders Fund
Affordable credit as we emerge from COVID-19.
A new £15 million fund has been announced to support affordable lending services.
It will support Credit Unions and Community Development Financial Institutions (CDFIs) which offer financial help to those who have poor credit and are often turned away from high street banks.
Communities Secretary Aileen Campbell said:
“We know the pandemic has had a financial impact on many people in Scotland and we want to strengthen services that support people with managing their money.
“Credit unions and CDFIs provide ways of saving, lending, and accessing affordable credit. They can be a financial lifeline for people who can’t always access what they need from high street banks, helping them to avoid riskier ways of dealing with debt, like going to pay day loan companies.”
The funding will support work which:
- promotes the availability of affordable credit
- strengthens the balance sheet of affordable credit providers
Organisations are being invited to submit applications by 3 March 2021, and they will be informed of funding decisions during the week commencing 8 March.
Successful applicants will receive funding by 31 March.
Credit unions and CDFIs offer financial products to those who may struggle to get what they need from high street banks. This includes those with no or a poor credit history, low income consumers, young people who are not in employment or education, the elderly and disabled people.
A credit union is a member-owned financial cooperative, operated on a not-for-profit, ethical basis which provides services similar to retail banks, including deposit accounts, provision of credit, and other financial services.
Community Development Financial Institutions (CDFIs) tend to be charities or community interest companies, which typically provide small personal loans of around £500 and offer additional services such as help to manage money, referrals to money or debt advice, support to open bank accounts.
The Scottish Government has also confirmed £14 million for the Community and Third Sector Recovery Programme (CTSRP) in 2021-22, enabling support for Third Sector and community organisations to continue to the end of June 2021. This exceeds projected investment by £4 million and will support charities, community groups, social enterprises and voluntary organisations which are helping people and communities through the shift from lockdown to recovery.
Latest News from
Accelerated easing of restrictions14/04/2021 09:20:00
Six people from six households can meet outdoors from Friday 16 April.
Coronavirus (Scotland) (No.2) Act 2020: Fifth report on the Scottish Ministers' responses to requests for information under the Freedom of Information (Scotland) Act 200212/04/2021 12:05:00
Report on the Scottish Ministers’ handling of requests for information under the Freedom of Information (Scotland) Act 2002 for the period from 27 January to 26 March 2021.
HRH Duke of Edinburgh12/04/2021 10:05:00
Buckingham Palace recently (09 April 2021) confirmed the death of His Royal Highness, Prince Philip, The Duke of Edinburgh, at the age of 99.
Oil and Gas Production Statistics for 201908/04/2021 15:05:00
Statistics announced today by Scotland’s Chief Statistician show that oil and gas production in Scotland, including Scottish adjacent waters, is estimated to have been 77.2 million tonnes of oil equivalent (mtoe).
Coronavirus (COVID-19): timetable for easing restrictions08/04/2021 13:05:00
Sets out how and when we plan to lift the current coronavirus restrictions over the coming weeks and months.
Latest Scottish Welfare Statistics published06/04/2021 12:05:00
The Chief Statistician has released figures on the Scottish Welfare Fund, the Self-Isolation Support Grant and Discretionary Housing Payments up to February 2021.
Oil and Gas Production Statistics for 201931/03/2021 14:25:00
An Official Statistics Publication for Scotland.