Credit union loan scheme to low-income families to be expanded

Credit unions across Ireland are to start offering cheaper loans to low-income families.

Since November 2015, the It Makes Sense loans have been available in 30 credit unions, on a pilot basis.

The scheme makes short-term credit available on a low-cost basis and the loans are specifically designed as an alternative to high-cost moneylenders.

Since the scheme was launched, more than 1,200 loans have been drawn down with an overall value of over €720,000. The average individual loan is €500.

The pilot stage showed that more than half of those using the scheme had previously used a moneylender, while 22 per cent of those on the scheme had been thinking about using a moneylender before they signed up.

The scheme is now moving to a permanent footing and is being offered to credit unions nationally. Fifty credit unions have already expressed interest and 18 are in the process of signing up.

Minister for Social Protection Leo Varadkar urged other credit unions to sign up, saying: "This scheme represents real practical help for families and individuals struggling on low incomes."