Credit unions in the Falkirk area to share in £20 million support fund
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Often the only source of affordable loans for people in crisis situations, credit unions – like Falkirk District Credit Union in Grangemouth – are also feeling the strain during the current coronavirus crisis, with many of their members struggling to meet loan repayments.
The Scottish Government has released details of two dedicated funds to ensure the sector can continue its crucial work during the COVID-19 pandemic and beyond.
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Hide AdKnown as the Third Sector Resilience Fund and the dedicated Credit Union Resilience Loan Fund, they will provide practical support and offer more than £20million to credit unions.
Offering ethical financial services to many thousands of individuals and families across the area, Falkirk District Credit Union provides a financial lifeline to families who can now apply for assistance from the Holyrood Government.
The package is recognition many of the people worst affected by the effects of coronavirus, like 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.
Some Credit Union customers will undoubtedly be struggling to make loan repayments either now or in the future and Credit Unions – by their nature – do not make big profits from lending to their members.
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Hide AdThe margins are fine and so the threat to the Credit Union business model is greater than in other financial sectors where the business is geared to making bigger profits for shareholders rather than more affordable loans for customers.
Robert Kelly, CEO of the Association of British Credit Unions, said: “The voices of our credit union leaders are being channelled to government in a robust and effective way and the response has been hugely encouraging thus far.”