"We are delighted to launch this loan product, which we hope will enable many families across Salford to access a fair and affordable loan that will also help them to save for the future."
Sheila Murtagh, CEO of Salford Credit Union,
Salford Credit Union has launched a new loan for families living in the city who are in receipt of Child Benefit.
The loan, which launched November 23, enables families to apply for up to £500 without having to complete a credit check and use their Child Benefit payments to repay the loan.
The launch coincides with the announcement of a Greater Manchester credit union COVID recovery fund of £15million. Salford Credit Union has committed to lending £1million to residents in the city.
Sheila Murtagh, chief executive of Salford Credit Union, said: “We are delighted to launch this loan product, which we hope will enable many families across Salford to access a fair and affordable loan that will also help them to save for the future.
“Too many families turn to high-cost lenders or, in extreme cases, loan sharks. This family loans provides an ethical alternative that is charged at a fixed and transparent rate of 42.6% APR- most lenders charge much higher interest rates for loans less than £1000.”
Edwina, a single mother from Salford who took part in the credit union’s Family Loan pilot project, said: “This loan is essential to myself as I am a single mum and it helps me to pay bills.
“In this time of COVID-19 I have needed to buy extra food and use more utilities. The money is helping more so with kids, it is a lifeline.”
Applicants will need to join Salford Credit Union, which is free to join after the credit union scrapped its membership fee as part of its COVID-19 response.
Successful applicants will receive their loan within four working days of applying - and top-up loans will be received within 24 hours (Monday-Friday).
The loan will be made available via the website. Applicants will need their National Insurance Number, Child Benefit number and information on your incoming and outgoings.
For full details, terms and conditions, visit: www.salfordcreditunion.com/salford-family-loan/