Not-for-profit lender to expand

A not-for-profit lender is to expand its services in Scotland thanks to a £500,000 investment.

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, every year. 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.”