Glasgow to get CDFI to offer loans to individuals
Regeneration & Renewal
The first community development finance institution (CDFI) in Glasgow to offer loans to disadvantaged people could be launched next year by a city housing association.
Scotcash aims to launch in January 2007 and will be the city’s first personal lending firm, says David Fletcher, head of regeneration at Glasgow Housing Association.
‘We are very confident and enthused about this happening, but it all depends on the final bits of the funding packages (being concluded),’ he said.
The only other CDFI in the city provides lending support to the social economy and small business sector, not loans to individuals.
Fletcher told delegates at the Royal Town Planning Institute’s national regeneration convention last week that the association was working with agencies such as Communities Scotland to develop plans. It also hopes to involve the Department for Work and Pensions (DWP), he said.
The scheme could save Glasgow’s 45,000 users of expensive home credit an estimated £28 million over 20 years said Fletcher. The proposal will be presented to the DWP by Fletcher and his colleagues in two weeks.