Bradford District Credit Union is to create a special £2m fund to offer a new ‘Unlocking Loan’ to help new and existing customers recover financially from the Covid-19 crisis.
The Credit Union has timed the loan, which has a low interest rate to help people who have been struggling, to coincide with the proposed partial reopening of retail and hospitality.
Applicants will need to be payroll scheme employees, employed members or self-employed members and the loans will have an interest rate of 12.7 APR% for any new applications between the £2,000 and £5,000 level.
Applications are online only, and the credit union promises decisions will be made within three working days.
Payment terms will be between six months and five years, and early repayments can be made without incurring any penalties.
BDCU hopes the loan will stop people in the area turning to loan sharks, a danger it regularly highlights, most recently with last autumn’s ‘Loan Sharks are Monsters’ campaign.
CEO Andrew Bowker said: “BDCU is here to help new and existing members as best we can through this difficult and challenging time allowing for current and future plans to be fulfilled.”
The ‘Unlocking Loan’ will be available from 21 of April – 30 of September 2021 subject to successful applications and demand.