Lloyds Banking Group is today awarding £1m to 21 Credit Unions across the country as it announces the second tranche of funding to be released from its £4m, four year, commitment.
Over the four year period, from 2014 until 2017, this investment should enable the Credit Union sector to lend an additional £20million to their customers1.
The Credit Union sector already provides a vital service to many people across the country. By providing core funding, Lloyds Banking Group is helping the sustainability of the sector’s provision to meet an important, and growing, social need.
The awards, selected by an independent grants committee, in partnership with the Credit Union Foundation, provide necessary core funding support that enable the successful Credit Unions to lend an additional £5m each year across the UK.
The timing of this grant is also significant as it provides more affordable lending choices to consumers who may be worrying about debt after Christmas.
Accumulation of Reserves:
Without Lloyds’ investment it would have taken the beneficiary Credit Unions more than nine years to accumulate the necessary reserves to enable them to lend in this capacity – with one beneficiary it would have taken 35 years.
Robin Bulloch, Managing Director, Lloyds Bank 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 lending option available to them.”
Liz Barclay, Independent Trustee of the Credit Union Foundation and Chair of the Fund Grants Committee said: “Credit Unions provide an ethical and affordable financial service to some of the hardest to reach communities in the UK. For the second year running, we have had a fantastic response to the scheme with applications from many credit unions looking to expand their services and serve more of their local communities. Lloyds Banking Group’s £4 million investment over 4 years via the Credit Union Foundation increases the sector’s capacity to lend an additional £20m and delivers the potential to give a major boost to sustainable credit union growth for many years to come. The capital awards are a long term investment in the core funding of credit unions and will help more people to access the financial services they need in their community.”
Economic Secretary to the Treasury, Harriet Baldwin said: “Lloyds Banking Group’s continuing support is a very welcome addition to the significant contribution of the Credit Union movement, helping them serve even more people in their communities. I hope other banks will consider this in future.”