Launch Of £15 Million Scottish Community Lenders Fund
24th February 2021
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.
International Credit Union (ICU) Day celebrates the spirit of the global credit union movement. The day is recognized to reflect upon the credit union movement's history, promote its achievements, recognize hard work and share member experiences.
If your business would like to support employees in building a regular saving habit, call HI-Scot Credit Union..
2020 has not been the easiest of years and, for many people, saving has been the last thing on their minds - but there's never been a more prudent time to think about putting money aside for a rainy day. Or a global pandemic.
A Hi-Scot credit union loan is now easier than ever to arrange for members. Cars are a popular reason to borrow but loans can be arranged for a wide range of things.
Hi-Scot Credit Union covers the Highland and Islands and is membership organisation covered by the Financlal Services Authority Directors are elected each year and are unpaid volunteers with professional staff running the day to day business. Online banking has recently become available for members.
Hi-Scot Credit Union is a membership organisation covered by the Financial Services Authority who guarantee savings in credit unions. It makes sense to save with us Everyone benefits from regular saving, as it allows us to work towards our financial goals and gives peace-of-mind should an emergency arise.
COVID-19 (coronavirus) information. We're here to help We're here to support you in a number of different ways.
"As we enter our fourteenth year of business, we'll be spreading the word about the benefits of saving with the credit union," said HI-Scot's General Manager, David Mackay. "HI-Scot is member led and member run and we offer a range of services." HI-Scot is well established in the Western Isles, where the credit union is based.
In 2020, HI-Scot credit union's focus is on making saving and borrowing easier for our members, particularly through the use of payroll deduction with businesses across the Highlands and Islands. Thousands of employees already have access to payroll deduction with HI-Scot, something the credit union wants to build on in the coming year, promoting the service to employees who work with existing partners and showing other businesses the benefits of offering payroll deduction to their staff.
HI-Scot, the credit union for the Highlands and Islands, has vowed to make 2020 the year when saving and borrowing are even more accessible. With a focus on payroll deduction, allowing people to save directly from their pay packet every month via their employer, the credit union offers a viable alternative to high street banking in 2020.