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The New Carnegie UK Loan Fund

New Carnegie UK Loan fund will support affordable lending to financially excluded households

A new £1 million fund has been launched to help tackle the poverty premium for low income borrowers in Scotland.

Loans from high cost credit companies, including pay day loan firms and door step lenders, currently cost people in Scotland millions of pounds in interest repayments every year – with people with the least usually paying the most for their credit.

The new Affordable Credit Loan Fund has been set up by the Carnegie UK Trust, in partnership with Social Investment Scotland, to help more people access affordable credit, delivered on a not-for-profit basis by a range of social enterprises. The new loan fund will be available to these responsible finance providers as a repayable loan over 10 years, to help them expand their loan book to reach many more people.

In addition to loans, the not-for-profit responsible finance providers also offer their customers a wide range of financial inclusion services, including debt advice, savings opportunities, income maximisation and budgeting services and the investment will also support more people to access these services.

“In recent years Social Investment Scotland has built up significant expertise in this sector and have made a number of substantial investment commitments to affordable credit provides operating in Scotland and beyond. The need for appropriate investment and support is clear and the initial investment from Carnegie will be crucial in supporting the growth of this sector. This is not only to improve the operational sustainability and efficiency of providers but more importantly creating a real, measurable and sustainable impact upon people’s lives- neatly aligning with our mission here at SIS. We hope to work with other partners to increase the size of the fund over time and welcome the initiative of Carnegie to provide the thinking and impetus for this important development.” 

Nick Kuenssberg, Chair of Social Investment Scotland

Interested parties, please contact us.