Salford Credit Union have announced a new family loan product that will be available to apply from the 23rd November.
Salford Credit Union has pledged to lend one million pound to residents of the city.
The new loan will hopefully help families across Salford; families can receive a loan of up to £500.
The loan is then paid back through their child benefit.
We are incredibly proud about the launch of our new loan product – we hope it will help families across Salford borrow responsibly while building up their savings at the same time. Read more about our Family Loan: https://t.co/kgxVPcdl6n
— Salford Credit Union (@CUSalford) November 23, 2020
This also helps families to build up on their savings.
The child benefit is paid to Salford Credit Union who take the loan payment out and some savings and then the rest of the payment is sent back to the applicants bank account.
Sheila Murtagh Chief Executive at Salford Credit Union and who has worked in Salford for over twenty years said: “this helps them to budget for those family expenses.”
Sheila said: “they know exactly how much they are going to be paying back each week.”
She went on to say: “they know that the rest of their child benefit will be going back into their bank account and they know are working with a local organisation that is about helping Salford families.”
“helping Salford families.”
Salford Credit Union made sure research was done prior to the launch of the new Family Loan.
Researching with other unions to make sure it was right for the people.
“We also did a pilot with some of our existing members who have been with us a long time, we knew they would give us feedback if they didn’t think it was a good idea.
Sheila went on to explain: “the pilot was successful we got some really nice case studies, people saying yep this is really helpful and how it has helped them managing their budget.”
Sheila explains what sort of an impact the new Family Loan may have on families in Salford.
Sheila said:” we want to make sure the families are savers of the future rather than borrowers.”
Applicants for the loan will need to join Salford Credit Union, as part of Covid-19 response a membership fee is no longer required.