26/07/2016

Microcredit Loan Scheme To Be Rolled Out Nationwide

A loan scheme designed to help people avoid using moneylenders is to be rolled out nationwide.

The "microcredit scheme" began trialling in November last year, facilitated through the Credit Union network and is being run in partnership with the Credit Union Sector, the Department of Social Protection, the Citizens Information Board, An Post and Not for Profit Groups.

The 'It Makes Sense' loans scheme is open to social welfare recipients who qualify for the Household Budget Scheme, and offers small loans between €100 and €2,000. The loans are available at a low variable interest rate and are easy to access.

Speaking on RTÉ's Morning Ireland, spokesperson for Money Advice and Budgeting Service (MABS), Michael Culloty, said that the latest figures show some 360,00 people use legal moneylenders, which can have up to 200% interest and collection charges.

"If you need a loan you go to the credit union, ask for it, and even if your credit rating isn’t good, and perhaps have defaulted, you will be considered," Mr Culloty said.

"You will be given an answer and a possible loan within 24 hours."

Mr Culloty said the national rollout of the small loan scheme is "hugely important, especially for people in crisis situations".

(MH/CD)

Related Irish News Stories
Click here for the latest headlines.

27 July 2016
Credit Unions Urged To Sign Up To New Loan Scheme
Credit Unions across Ireland are being urged to sign up to the newly announced 'It Makes Sense' microcredit loan scheme. It was announced on Tuesday that the scheme, which first began trialling in November last year, was to be rolled out nationwide with immediate effect.
11 November 2013
ILCU Allays Members' Fears
The Irish League of Credit Unions (ILCU) has issued a statement in relation to Newbridge Credit Union. Over the weekend, it was announced that Newbridge Credit Union had been transferred to Permanent TSB, but ILCU has since reassured its members that credit unions remain strong and secure.
26 November 2015
Mortgage Loan Scheme Needs To Be 'Revamped' - FF
A loan scheme designed for first time buyers needs to be "revamped", Fianna Fáil spokesperson on finance Michael McGrath has said. Deputy McGrath made the call after figures revealed that not a single loan has been issued under the scheme so far in 2015.
30 August 2019
Businesses Urged To Tackle Brexit Head On
With less than nine weeks to go until Brexit, businesses are being urged to accelerate their preparations and avail of the wide range of State supports on offer to help them do so. The Minister for Business, Enterprise and Innovation, Heather Humphreys TD made a direct appeal while on a visit to Keelings, a family owned fruit company.
22 March 2018
Govt Accused Of 'Refusing' To Deliver Affordable Homes
Sinn Féin has challenged the government over what Eoin Ó Broin TD has described as a "refusal to deliver genuinely affordable homes".