BUT government-supported scheme for providing interest-free loans financially vulnerability will be expanded to reach up up to 20 000 people.
Interest Free Loan Scheme (Nils), which is supported by the Treasury but run credit unions and other credit institutions, successfully put to the test in Manchester and September will roll out in other parts of United Kingdom.
It aims to provide emergency loans to those who otherwise would have been turned down because of unable to pay interest.
“We finance items from household items and school uniforms to laptop computers for access education and training, and tools as well as equipment to help people back to work, Niels says on this is website.
The pilot scheme will be expanded with the existing locations in Herefordshire, Shropshire and Worcestershire from September to other parts of country for Period of two years, with a decision to be made after this moment over whether should be expanded further.
Clients are only allowed to have one loan with program they can have for between six and 18 months, although the average duration of time 12 months. Borrowers can access from 100 to 2000 pounds, with average amount borrowed £500.
The pilot project is funded with £3.8m from the Treasury, £1.2m from JP Morgan Chase and up up to £1 million of loan capital from each of autonomous administrations corresponding in England from Fair4All Finance.
Fair4All Finance, which is partially runs scheme, was founded by the Treasury and the Department for Digital technologies, culture, media and sports three years ago in «support in financial well-being of people in vulnerable circumstances.
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Economic secretary to the Treasury, John Glen, last month expressed the hope that full-large-scale program may eventually be curtailed out.
He informed the Association of British credit unions that Niels “is fundamental, worthwhile new initiative to provide a gateway product for people who currently out of credit of some credit unions.
He said: challenge will now take this proof-of-concept pilot to a larger pilot so we can test it.”
