Council backs new loan scheme for people on benefits
Telford & Wrekin Council has invested £100,000 to support a new loan for people in receipt of welfare benefits who previously would not have been able to access low interest rate credit.
The Council has worked in partnership with Just Credit Union to create the CUSmart Loan, designed to provide residents with an alternative to expensive, pay day and door step loans.
In the tradition of credit unions, successful applicants will be saving as they repay.
The offer is as follows:
• Small short-term low-cost loans
• Loans from £50 - £300
• Borrowed over a maximum of 12 months
• Borrow must save £1.50 per week for every week the loan is outstanding. The savings can be accessed when loan repaid in full
• Apr 42.6%
Councillor Bill McClements, Telford & Wrekin Council’s cabinet member for Finance and Enterprise, said: "What we are doing here is offering people an alternative. It is very easy to worsen your financial problems with misguided borrowing from lenders that charge high interest rates.
"By teaming up with Just Credit, we are giving people another option which is more affordable and doesn’t contain any hidden surprises. It is an initiative I very much welcome."
Just Credit Union offers a range of affordable loans and each one includes a savings element to encourage lenders to put money aside to help them balance their domestic budget.
There are no joining fees and decisions will usually be made within 2 days. Interest rates are considerably less than the rates charged by most commercial short-term loan providers.
If you know anyone who is looking for a short-term loan, put them in touch with Just Credit Union 01743 252325.
This includes people who have other high interest rate loans that they are struggling to repay, and may benefit from consolidating their current debt with a much cheaper loan from Just Credit.