Sheffield low interest council loan service

In an effort to help residents, loans are available from the city of Sheffield council. The local authorities are providing funds to families on a low income or that have poor credit. The money is being issued to borrowers at a much lower interest rate than can be found at other companies, such as payday lenders.

The service is known as Sheffield Money, and families can use the loan to pay for any type of bill they need assistance with. This means the funds can be used to pay for expenses such as rent, food, energy bills, car repairs, or any other cost that a resident is faced with.

This loan programme is an alternative to families or individuals so that they will no longer need to turn to high priced payday lenders or other providers. The interest rate of the government backed funds will range from 45.0% or so to as high as 90%. While this may still seem excessive, it is still a much better APR than what some city of Sheffield families are paying to other high priced lenders, which can be as high as 272%. The savings in interest payments from using this council backed programme are substantial, and can be as much as £300 per year.

The demand for financial assistance across the city is very high. The unemployed often need extra cash for a short period of time to keep up with bills or food expenses. Or another use of the low interest loans can be to pay for job related expenses, such as clothing or transportation. The city of Sheffield will also allow the money to pay for rent arrears or deposits. Families on benefits, or waiting on them, are also using the money to cover their living expenses.

Application process for loans from Sheffield Money

There are a few different ways to apply. They include using the council website or there are also applications taken over the phone. For those residents that need face to face contact with a customer support specialist, they can drop in at the money shop in Sheffield, and that person can also help them apply for a loan.

The council is also providing these lower cost loans to people with poor credit. This means that if a family has been rejected from other other lenders in the past, such as a bank or credit union, they can still apply for this Sheffield Money service. They do not need to turn to a loan-shark or other source of high priced financing.

After an assessment takes place, the loan application can be approved in a matter of minutes. In addition to the annual savings on interest costs, another service provided by the council is the honest advice from their specialists.

As an example of this, if the applicants credit rating is high enough, rather then issuing council loans at the 45% – 90% interest rate, they will refer the borrower to the Sheffield Credit Union or Transave UK. The authorities will always refer a applicant to a better option for the money they need, if there is one. This means that the resident can receive the money they need at an even more affordable APR.

This programme will allow the family to get quick access to the cash, which also means the Sheffield Money service can be used to pay the bills in an emergency. The council estimates that thousands of residents will be able to apply each year and be found eligible.

There will be other benefits to applying for a loan from the government authorities. The authorities expects the rates of evictions to decline as well as the number of people living in fuel poverty, as this alternative source of financing will provide funds for housing, rent expenses and other needs. The money saved on interest payments will also be recycled back into the city.

Sheffield Money is also partnering with other organisations on this programme. Five Lamps is involved in issuing smaller amounts of funds, while larger amounts are met by the credit union. The Financial Conduct Authority (FCA) has also supported this loan programme on behalf of the local authorities.

Also, for any applicant rejected by the council, or if someone needs additional debt advice, Citizens Advice is also providing support. A specialist will drop in to help with budgeting as well as offer referrals to other financial aid schemes, ranging from food banks to energy bill or rent assistance. The Sheffield Citizens advice provides this service for free to the resident.

For more information on the loan service, or to apply for funds, the telephone number is 0114 273 6318. Or residents can drop in at the City Council office, which is at Town Hall, Pinstone Street, Sheffield, S1 2HH.