Glasgow gets CDFI for personal loans
Regeneration & Renewal
The first community development finance institution (CDFI) in Glasgow to offer loans to disadvantaged people will be launched next week.
Scotcash will be the city’s first CDFI personal lending firm, according to its manager, Leah Cameron. The CDFI calculates that if the 45,000 Glaswegians currently without access to mainstream banking services used its services they would save £27.5 million in interest payments over 20 years.
Cameron said that if a person borrowed £200 over 32 weeks they would have to pay back £224.72 with Scotcash, but with another mainstream home credit company they would have to pay back £320.
Scotcash is planning outreach services offering financial services through housing associations and Citizens Advice Bureau offices.