The Treasury are set to reveal a change in the law that will see far more people eligible for low cost loans from credit unions . In the announcement expected today, Treasury minister Kitty Ussher will reveal that the rules on who is eligible for a low cost low from a credit union have been weakened, opening up the cheap loans and simple saving schemes beyond the 500,000 people who are currently members of such unions.
There are around 500 credit unions nationwide at present, with those unions now able to team up with councils, housing associations and privately owned companies to attract a greater number of members. The changes are being backed by £38 million of Government funding in a bid to make the increased number of low cost loans viable. It is hoped that the loans will provide a better alternative than the doorstep loans which many desperate people are currently turning to, despite exorbitant interest rates . The changes are to be announced at an all party Parliamentary group today.





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