£500,000 funding deal to help Lancashire people avoid high cost lenders
Preston-based Lancashire Community Finance has secured £500,000 funding from RBS Social & Community Capital (S&CC) to provide personal loans to help Lancashire residents avoid high cost lenders and finance schemes.Lancashire Community Finance provides personal loans, business start-up loans and home improvement loans to those unable to access mainstream financial services. While home improvement loans are provided in cooperation with Preston City Council and start-up loans in partnership with central Government, the funds from RBS will be used by Lancashire Community Finance exclusively for personal loans.
Elaine Rimmer of Lancashire Community Finance said: “Our mission is to reduce the number of financially excluded people in the area by providing a viable alternative to the services of doorstep and high-interest lenders. Offering to lend as little as £400, we offer loans on a case by case basis without credit scoring and at much, much fairer rates than some other sources of personal finance such as doorstep lenders, rent-to-own shops and unlicensed lenders or ‘loan sharks’.” Simon Jacobs, chief administrative officer, commercial and private banking, said: “RBS has a strong heritage supporting community-based businesses. Through RBS Social & Community Capital (S&CC), we are building on that support, helping potential and existing social entrepreneurs who are unable to access sufficient finance through mainstream channels.”