Black_Adder
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This is from the Guardian clearly a left leaning rag. According to some posters here - we don't need the Credit Unions as their model is bust. Yes no poor people any more just the 'challenged middle class' who are just about surviving. Move along there - nothing to see here.
http://www.theguardian.com/lloyds-b...e-importance-of-core-funding-to-credit-unions
"Finding an affordable provider of a smaller size loan can be a challenge for consumers at the lower end of the market. A quick search among the high street big banks will show you the smallest loan on offer is generally £1,000.
While this may meet the needs of most consumers, those in need of smaller levels of credit face difficulties. For example if you require a loan for a single household appliance you are unlikely to need the full £1,000 (depending on your taste in fridge freezers).
The same is true of insurance; if you only have the essential items to insure (boiler, washing machine, for example) the chances are you will not need the minimum limit set by high street banks.
This is why credit unions are so important. They fill the small-credit gap and offer cost-effective lending for consumers who otherwise may face the unwelcome prospect of looking to payday lenders, and their less-than-appetising interest rates.
The problem credit unions face is, rather obviously, funding. Lending in small amounts (with responsible interest rates) means they struggle to build their capital assets and grow as businesses. In the long term small and medium-sized credit unions may face financial difficulty.
Recognising this, Lloyds Banking Group - working with the Credit Union Foundation - provides grants to credit unions totalling £1million per year. This week, they have announced the second tranche of winners of grants which sees 21 further credit unions receive grants ranging from £6,720 to £100,000.
To make the best use of the funding, an independent panel awards grants to credit unions it believes to have the best plan to use the money for sustainable growth. But what do these grants actually mean for credit unions? Nottingham Credit Union was a beneficiary of a £50,000 grant in 2014 and is now reaching a stage where the results of investment are becoming evident.
Ella Ferris, general manager, Nottingham Credit Union, says: “We are so pleased with the support Lloyds have given us through this grant. Allowing us to build our reserves is a key step to becoming a sustainable credit union, ensuring that we meet regulatory requirements regarding capital is very hard to do as a not-for-profit.”
The grant has also allowed Nottingham Credit Union to move into new premises in Mansfield and refurbish them. “Whilst there has been a credit union in Mansfield for over 20 years, we have been hidden,” explains Ferris. “Moving into our own premises has helped enormously with letting people know we are there and we can help.”
Lloyds Banking Group understands the value of credit unions and the service they perform, not only for consumers but also for the British economy – it is not a sustainable solution to load the poorest with debt.
Over the four year period, from 2014 until 2017, Lloyds Banking Group’s £4m investment to credit unions should enable the sector to lend an additional £20m to their customers. That’s an extra £20m that can support the poorest people in the country and give them the chance to prosper.
And the timing could not be more relevant. January is notoriously the month where purse strings have to be tightened following Christmas indulgences, so the need for affordable lending could not be more significant as people look to avoid falling into debt.
Robin Bulloch, managing director, Lloyds Bank Retail and chair of the Financial Inclusion Steering Group at Lloyds Banking Group said: “Credit unions play a crucial role in helping people access finance in a safe and responsible way, and helping credit unions to expand their reach by more than £20m is fundamental to our public commitment to help Britain prosper. This support means that more consumers who need small loans after Christmas have another viable lending option available to them.”
http://www.theguardian.com/lloyds-b...e-importance-of-core-funding-to-credit-unions
"Finding an affordable provider of a smaller size loan can be a challenge for consumers at the lower end of the market. A quick search among the high street big banks will show you the smallest loan on offer is generally £1,000.
While this may meet the needs of most consumers, those in need of smaller levels of credit face difficulties. For example if you require a loan for a single household appliance you are unlikely to need the full £1,000 (depending on your taste in fridge freezers).
The same is true of insurance; if you only have the essential items to insure (boiler, washing machine, for example) the chances are you will not need the minimum limit set by high street banks.
This is why credit unions are so important. They fill the small-credit gap and offer cost-effective lending for consumers who otherwise may face the unwelcome prospect of looking to payday lenders, and their less-than-appetising interest rates.
The problem credit unions face is, rather obviously, funding. Lending in small amounts (with responsible interest rates) means they struggle to build their capital assets and grow as businesses. In the long term small and medium-sized credit unions may face financial difficulty.
Recognising this, Lloyds Banking Group - working with the Credit Union Foundation - provides grants to credit unions totalling £1million per year. This week, they have announced the second tranche of winners of grants which sees 21 further credit unions receive grants ranging from £6,720 to £100,000.
To make the best use of the funding, an independent panel awards grants to credit unions it believes to have the best plan to use the money for sustainable growth. But what do these grants actually mean for credit unions? Nottingham Credit Union was a beneficiary of a £50,000 grant in 2014 and is now reaching a stage where the results of investment are becoming evident.
Ella Ferris, general manager, Nottingham Credit Union, says: “We are so pleased with the support Lloyds have given us through this grant. Allowing us to build our reserves is a key step to becoming a sustainable credit union, ensuring that we meet regulatory requirements regarding capital is very hard to do as a not-for-profit.”
The grant has also allowed Nottingham Credit Union to move into new premises in Mansfield and refurbish them. “Whilst there has been a credit union in Mansfield for over 20 years, we have been hidden,” explains Ferris. “Moving into our own premises has helped enormously with letting people know we are there and we can help.”
Lloyds Banking Group understands the value of credit unions and the service they perform, not only for consumers but also for the British economy – it is not a sustainable solution to load the poorest with debt.
Over the four year period, from 2014 until 2017, Lloyds Banking Group’s £4m investment to credit unions should enable the sector to lend an additional £20m to their customers. That’s an extra £20m that can support the poorest people in the country and give them the chance to prosper.
And the timing could not be more relevant. January is notoriously the month where purse strings have to be tightened following Christmas indulgences, so the need for affordable lending could not be more significant as people look to avoid falling into debt.
Robin Bulloch, managing director, Lloyds Bank Retail and chair of the Financial Inclusion Steering Group at Lloyds Banking Group said: “Credit unions play a crucial role in helping people access finance in a safe and responsible way, and helping credit unions to expand their reach by more than £20m is fundamental to our public commitment to help Britain prosper. This support means that more consumers who need small loans after Christmas have another viable lending option available to them.”