Plend teams up with non-profits to deliver loans to vulnerable borrowers
Plend is collaborating with a venture called Social Credit that is delivering interest-free loans as part of the scheme, according to Reuters.
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Fair4All said a portion of the £45m would be used to fund no-interest loans, and the rest allocated to other financial support measures. Customers who are turned down for a loan from a participating lender may be eligible for a no-interest loan if removing the interest subsequently makes the financing affordable, or if they have been turned down due to certain lending criteria such as a low credit score.
“We’d like to see all the financial services come together to look at how to solve that gap,” Fair4All’s director of policy and strategy, Tom Lake, told Reuters.
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The collapse or exit of many payday lenders such as Provident and Quickquid has left millions unable to access loans.
Roughly one in three Britons find difficulty in accessing credit from high street lenders either due to having a thin credit score or minor adverse credit history, a 2022 survey by PwC and credit broker TotallyMoney found.
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