Salford Credit Union launches new loan to support families receiving Child Benefit

Tuesday 16 January 2024

Salford Credit Union has launched a new loan for families living in the city who are in receipt of Child Benefit.

“We are delighted to launch this loan product, which we hope will enable many families across Salford to access a fair and affordable loan that will also help them to save for the future”, says Chief Executive of Salford Credit Union, Sheila Murtagh.

The loan enables families to apply for up to £500 without having to complete a credit check and use their Child Benefit payments to repay the loan.

The launch coincides with the announcement of a Greater Manchester credit union COVID recovery fund of £15million. Salford Credit Union has committed to lending £1million to residents in the city.

Sheila added: “Too many families turn to high-cost lenders or, in extreme cases, loan sharks. This family loans provides an ethical alternative that is charged at a fixed and transparent rate of 42.6% APR- most lenders charge much higher interest rates for loans less than £1000.”

Edwina, a single mother from Salford who took part in the credit union’s Family Loan pilot project, said: “This loan is essential to myself as I am a single mum and it helps me to pay bills.

“In this time of COVID-19 I have needed to buy extra food and use more utilities. The money is helping more so with kids, it is a lifeline.”