Adur and Worthing residents benefit from no-interest loan scheme
Released: Wednesday, 13 September 2023
Car repairs needed to travel to a new job, a replacement cooker, and a new washing machine are just some of the emergency costs that residents in Adur and Worthing have been able to fund as part of a no-interest loan scheme.
Earlier this year Adur & Worthing Councils began working with Worthing-based Boom Community Bank, a not-for-profit organisation, to offer no-interest loans to residents who may struggle to access credit.
The scheme is being funded by £100,000 from the UK Shared Prosperity Fund, which the Councils were successful in bidding for. It is designed to support those with a low credit score or low income who may not be able to access loans from mainstream banks, but who can afford to make repayments in small sums.
Typical loans are for between £300 and £1,500 with residents having up to three years to repay them.
Repayment schedules are tailored to reflect the borrower's financial circumstances and their capacity to pay. Funds repaid by borrowers are then used to service new loans - enabling more people to be assisted.
So far, residents in Adur and Worthing have used loans to cover costs for car repairs, white goods, household furniture, essential home maintenance, and computer equipment. No-interest loans can also be used for educational resources, dental and eyecare costs, season tickets, and other essentials.
Cllr Angus Dunn, Adur's Cabinet Member for Finance and Resources, said:
“Households with a low income or who are in receipt of benefits have little access to affordable loan products and may be forced to turn to payday lenders with high interest rates.
“This no-interest loan scheme is helping those in acute financial difficulty without the risk of them spiralling into further debt.”
Cllr Carl Walker, Worthing's Deputy Leader, said:
“The ongoing cost of living crisis means that many people do not have the money to pay for emergency or unexpected costs or save for the future.
“It’s great to see that residents have already started to benefit from this scheme and we are glad to see that it’s being rolled out to more people ahead of the increased costs that come with autumn and winter.”
Mark Jasper, Boom Community Bank's CEO, said:
“Boom Community Bank is proud to have provided accessible, affordable and trusted financial services to Adur and Worthing residents for more than a decade.
“We are pleased that through close collaboration with Adur & Worthing Councils we can facilitate the no-interest loan scheme to support residents who continue to struggle through a challenging period. Successful applicants will also be welcomed into the Boom fold as members of our financial cooperative. We hope that we can play an active role in supporting them on the journey to financial self-sustainability.”
To find out more about the scheme and how to apply, see:
For more help with the cost of living, see:
(PR23-123)
Page last updated: 18 April 2024