An Affordable Loans portal is being set up in partnership between private and social sector bodies to make it easier for people with poor or no credit rating to access affordable loans from responsible lenders. The move aims to help people break free from the cycle of high-cost debt and save hundreds of pounds in the process.
The Affordable Loans partnership is made up of Scotcash, Scotwest Credit Union, Manchester Credit Union, Leeds Credit Union and Five Lamps, and has the backing of the Cabinet Office, credit score experts Experian and Responsible Finance (formerly the CDFA), among others.
“The Affordable Lending Portal is a ground-breaking partnership that will help hard working families to borrow money at affordable rates,” said Jennifer Tankard, CEO of Responsible Finance.
“Credit is an essential tool that helps families manage their finances but unfortunately too many people have had to rely on high cost lenders to get credit. The Affordable Lending Portal provides an easier route for families to borrow from affordable and responsible lenders.”
The portal is initially launching in pilot areas in and around the cities of Glasgow, Newcastle, Leeds, Manchester and London.
Chair of Affordable Loans, Keith Rivers, added: “People think those out of work are the only ones struggling with debt- but this is simply not the case, with more than half of people heavily indebted in the UK being in work – it can affect everyone from worried working families to ambitious young workers.
“Those caught up in high cost borrowing are shut out from the best interest rates when they need it most. We offer products to change that and help people break free from the cycle of debt in an affordable way.”