Solent Credit Union launches innovative Christmas Loan
30 Nov 18
Solent Credit Union (SCU) launches its innovative loan scheme “£300 this Christmas, and £300 to spend for Christmas 2019”.
The new loan scheme combined a loan for this Christmas with a smooth transition into savings for 2019. The credit union sector supports its members with savings accounts and lending schemes in the lead up to the most expensive time of the year. Repayments start in January 2019 and end in November 2019. After the last repayment, the member will receive their £300 cash for Christmas 2019.
The offer comes at a time during the return of the hugely successful television series, ‘A Matter of Life & Debt'. The documentary series focuses on the positive stories of loans made by credit unions through the eyes of their members and staff and according to SCU Director Iain Messenger he said: “the credit union is seeing an upsurge of interest since season 2 aired”.
Iain added: “We think this will speak to people who want to spend a little extra this Christmas, and who would like to deal with an ethical, member-owned community bank.”
One of the drivers for the Christmas loan was the belief that encouraging borrowers to begin to save is part of SCU’s mission as a responsible lender. The credit union took particular inspiration from the research developed from the Fairbanking Foundation’s “Save As You Borrow” report , which shows that 67% of save as you borrow users who had no savings, found it impossible to put money aside, now have plans to save regularly throughout the year as a result of using a credit union services.
SCU Director, Brian Risdale believes their new loan scheme can help members become regular savers, such as the ‘Save as Your Borrow Report’ suggests, Brian said: “Helping people to start saving while they are repaying a loan has proved a success in the UK”.