Boost for low income families in Scotland as £2m fund is set up
income families will have greater access to affordable credit through a new £2 million fund.
Announced as part of the Tackling Child Poverty Delivery Plan, the Scottish Government will provide £1 million to the Carnegie Trust’s Affordable Credit Loan Fund, doubling the size of the fund.
This support could help grow the sector, opening up more options for those that need affordable credit, reducing the cost of borrowing and making sure that people can access financial products and services that meet their needs.
Equalities Secretary Ange- la Constance said: “Insecurity of income is one of the biggest challenges faced by those in poverty. By investing £1 million in the Carnegie Trust’s Affordable Credit Loan Fund, we are doubling the amount available for social lenders to offer affordable loans.
“We are showing how Scotland is leading the way on tackling the problem of access to affordable credit. We want to provide a clear alternative to organisations, such as payday lenders, that can often charge extortionate interest rates and can leave people trapped in a cycle of debt.
“We will continue to work with the Carnegie UK Trust and the community lending sector to ensure that everyone who needs it has access to the financial products they need to help them get on in life.”