GLASGOW, Scotland–Two credit unions here have launched the “Wee Glasgow Loan” as an alternative to payday lenders.
The two CUs, Pollok and BDC Credit Unions, reported that more than 100 people had already applied for the loan shortly after introduction.
According to GlassgowLive.com, more than 100,000 Glaswegians borrow from payday lenders every year.
The Wee Glasgow Loan was launched with support from the Glasgow Council. It acts like a payday loan, offering a small amount - up to £600, or £400 for the first loan - to be paid back over an agreed number of months or weeks, with an interest rate of 2% interest per month.
“The loan will cost you a tiny amount compared to high street lenders,” GlasgowLive.com reported.
"It is shocking, the way people are being exploited by these loans,” Glasgow City Council leader Frank McAveety told GlassgowLive.com. "With the Wee Glasgow Loan, people can access it quickly, they can agree on a reasonable payment period and they can also make sure they can afford those payments. It’s great to see local credit unions leading on this. The Wee Glasgow Loan will make a real difference to individuals in Glasgow, without them being exploited by the high street lenders."