Additional funding of up to £1m will be invested in Credit Unions to ensure they can provide access to fair and affordable credit for people affected by the coronavirus pandemic, Deputy Minister for Housing and Local Government, Hannah Blythyn announced today.
The funding aims to ensure that everyone in need of credit is able to access affordable financial services from credit unions.
Credit unions, like many financial service providers, saw loan requests fall during lockdown. Although loan requests are now beginning to return to normal levels, the drop will have an impact on their incomes. The Welsh Government is therefore providing up to a further £1million through the Credit Union Capital Loan Fund.
The Deputy Minister said:
Credit unions provide an excellent and ethical way for people to save regularly and borrow affordably and responsibly. They feature strongly in our efforts to tackle poverty and will continue to play a key role in building financial resilience.
During the coronavirus lockdown they made significant efforts to maintain essential services for existing customers and also new members looking to borrow affordably. Now more than ever, members will be looking to their trusted credit unions to provide assistance to navigate the unprecedented times that lie ahead.
Over the past six months, despite some having to close their doors physically, credit unions have been there for those in need of affordable credit. I am pleased that as restrictions start to ease, credit unions have begun to re-open branches and increase the range of services available. The funding I have announced today will support them to continue to help people in need.