£20m support package for credit unions praised
Credit unions across Renfrewshire are set to share in a £20million support package to help their members deal with the financial consequences of the coronavirus pandemic.
There are many credit unions in the district including White Cart CU, Gleniffer CU and Pioneer Mutual CU, and they are often the only source of affordable loans for people in crisis situations.
But the organisations themselves are also feeling the strain, with many of their members struggling to meet loan repayments.
Now the Scottish Government has released details of two dedicated funds to ensure the sector can continue its work during the epidemic and beyond.
The Third Sector Resilience
Fund and the dedicated Credit Union Resilience Loan Fund provide practical support, offering more than £20million to credit unions.
Credit unions in the Paisley area offer ethical financial services to many thousands of individuals and families.
They are among more than 100 credit unions all over Scotland, providing a financial lifeline to families, who can now apply for assistance from the Holyrood government.
The launch of the package recognises that many of the people worst affected by the effects of coronavirus – for example taxi drivers facing a fares slump, or those in the retail, hospitality or leisure industries – are often the people who rely on their credit union for affordable loans.
Robert Kelly, CEO of the Association of British Credit Unions (ABCUL) said:“The two specific support packages provided by the Scottish Government offer a mixture of grants and interest-free loans.
“At the start of the Covid-19 outbreak, the UK Government delivered a clear message in the Chancellor’s Budget that it was strongly supportive of backing the credit union sector and aiding its expansion through a programme of legislative reform in the coming months.
“This reform agenda will be critical in ensuring the credit union sector becomes more relevant across society with transformation and innovation across our range of products and services.”