Not-for-profit credit lender to expand in Scotland

A not-for-profit lender has been awarded a £500,000 grant to expand its services in Scotland.

Fair For You, which specialises in providing loans to buy essential items, says the cash will enable it to provide 3,000 more loans a year for the next 10 years.

It has already loaned more than £1.7 million to Scots, with about 6,000 people taking out a loan.

The £500,000 investment comes from the Affordable Credit Loan Fund, which was set up by the Carnegie UK Trust and backed by the Scottish Government.

Carnegie UK Trust chair Sir John Elvidge said such organisations could be a more affordable alternative to pay day lenders.

It is estimated that around 150,000 people in Scotland borrow £250 million from high cost lenders, such as pay day loan firms and doorstep lenders every year.

Sir John stated: "The poverty premium means that people who can least afford to borrow money usually pay the most to do so.

"Our Affordable Credit Loan Fund and national action group are seeking to bring new solutions to the affordable credit debate, with a focus on identifying sustainable, not-for-profit alternatives to the commercial high cost credit market.

"We are delighted that our first investment has been made to Fair for You to help Scottish customers better manage the affordable credit options available to them.''

Communities Secretary Aileen Campbell said: "The Affordable Credit Loan Fund ensures there is a clear alternative for people to access credit and not need to turn to pay day lenders, which can often charge extortionate interest rates and leave people trapped in a cycle of debt.

"I'm pleased that the fund is supporting not-for-profit organisations like Fair For You to expand their services in Scotland."