A new £2 million fund to help low income families have greater access to affordable credit has been welcomed by a local MSP
Announced as part of the Tackling Child Poverty Delivery Plan, the Scottish Government will provide £1 million to the Carnegie Trust’s Affordable Credit Loan Fund, doubling the size of the fund.
This support could help grow the sector, opening up more options for those that need affordable credit, reducing the cost of borrowing and making sure that people can access financial products and services that meet their needs in a responsible way.
Renfrewshire North & West MSP Derek Mackay said:
“Insecurity of income is one of the biggest challenges faced by low income families across Renfrewshire. By investing £1 million in the Carnegie Trust’s Affordable Credit Loan Fund, we are doubling the amount available for social lenders to offer affordable loans.
“We want to provide a clear alternative to payday lenders, who can often charge extortionate interest rates and leave people trapped in a cycle of debt.
“The Scottish Government will continue to work with the Carnegie UK Trust and the community lending sector to ensure that everyone who needs it has access to the financial products they need to help them get on in life.”