Our long-awaited evaluation of London Mutual Credit Union’s payday loan scheme has been published today and thought that it would be of potential interest to you.
The report demonstrates that not only does affordable short term borrowing through a credit union have the potential to be an effective way of diverting borrowers away from high cost lenders and give borrowers welcome flexibility about how to repay but also shows that even with the current interest rate restraints, such a product can be financially viable and sustainable in the long term.
Our research measured the success of the pilot project, examining actual performance over its 12 month lifetime, profiling of the new and existing borrowers together with their attitudes and behaviours towards payday loans and finally assesses subsequent patterns of financial service usage amongst new members to help determine the actual cost implications of delivering such a payday loan product.
We hope that it provides the sector with valuable insight and evidence that will encourage more credit unions to develop and launch affordable short-term lending products.
More details can be found on our website - www.inclusioncentre.org.uk and the Full Report is available here
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Gareth Evans
Associate Research Manager
The Financial Inclusion Centre
Read our research report - 'Can payday loan
alternatives be affordable and viable? An evaluation of London Mutual Credit Union’s pilot
scheme'
6th Floor, Lynton House, 7-12 Tavistock Square, London, WC1H 9LT
Phone: 020 7391 4594
Mobile: 07949 237 114
Email: gareth.evans@inclusioncentre.org.uk
Web: www.inclusioncentre.org.uk
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