A low-cost loan to help residents avoid costly payday lenders has been launched with support from Glasgow City Council.
The Wee Glasgow Loan has a low interest rate of 2% per month on a decreasing balance, and does not have the late repayment charges, hidden fees and long-term contracts associated with payday lenders.
Leader of Glasgow City Council, Cllr Frank McAveety, said: “We know that a high percentage of our citizens are unable to access mainstream credit due to poor credit history, low income and not knowing what the alternatives are. Consequently they are charged well over the odds for the cost of credit.
‘Now they will be able to borrow and payback based on their own particular financial circumstances and more importantly find out about more sound ways of saving and low-cost borrowing, to get in a financially steady situation.’
The new loan is operated by Pollok and BCD Credit Unions and supported by Glasgow City Council. Figures suggest that 100,000 people in the city regularly rely on high cost credit companies.
