UK Bill Help

When facing a crisis, individuals can apply to the Small Loan Scheme. While the funds are provided by the credit union, the programme is run in partnership with the council, and the aid is intended for people that are not eligible for Hardship Support, which is a form of emergency aid. The money from credit union can be payment for everything from food to rent in advance or a deposit, so this is similar to the local hardship programme.

While using any type of loan should not be a residents first option when it comes to accessing money for their emergency, it can be considered. The advantage of using the Nottingham Credit Union is that all funds will be issued with a relatively low interest rate, meaning the loan will be a little easier to pay off. When someone meets eligibility criteria, they will be provided between £50 – £500.

Terms of the loan scheme and uses of funds

In order to apply to this, the council will need to refer the individual to the credit union, so no self-referrals are accepted to the scheme. They will only do this if the person applied for the Hardship Support scheme first but there application was refused for any reason. The council is located at Loxley House, Station Street, or call them at 0115 915 5555.

There are several other eligible criteria that need to be met in order to get a loan, and they include the following.

• The funds are only for individuals or families on a low income that also have a local connection to Nottingham, including they need to live in the area for six of the last twelve months.
• All applicants need to be age 18 or older.
• The person must be in a crisis and applied for other charity or government aid first, so they need to be out of options.
• A referral is needed from the Nottingham Council, so the anyone in need should call or stop by there first.
• An application needs to have been made to the Local Discretionary Hardship Support Scheme first.

Money will be deposited into a bank account, and it can be used to pay food, pay for gas bill arrears, a deposit, or other emergency living expenses. Funds can also be provided to those threatened by homelessness, such as rent arrears that is due to the landlord.

The aim of partnering with the Credit Union is to provide a more affordable option for families facing a one-off crisis. There may be funds for deposits or rental costs as well as food as a result of this loan, and the money can also help people who can’t normally get access to mainstream lending at affordable rates. The council wants to prevent people from turning to high interest payday lenders.

The Credit Union will also need to assess any applications. Those seeking assistance from the Small Loan scheme need to show the ability to repay the money over time, as the union will not provide funds to people with a chronic history of debt arrears or homelessness. This they operate as a co-operative, membership is a requirement in order to apply.

Repayment terms will normally be as long as twelve months, however it can vary based on many factors. The credit union may have other conditions as well. This will depend on many considerations that are taking, including the applicants income.

The council will also share any losses with the credit union, so they take on responsibility for this scheme too. The reason this is done is to encourage access to funds, which can help with rent or housing payments and prevent homelessness in Nottingham. These small loans will also benefit the council in other ways, such as addressing hunger, so this is why they want to encourage the Credit Union to lend by reducing their risk.