Monday, July 25th, 2016
The Social Finance Foundation (SFF) has welcomed the continued support from the Department of Social Protection aimed at expanding the Personal Microcredit (PMC) scheme. The scheme is designed to enable credit unions provide small affordable loans to individuals and families who heretofore had to rely on moneylenders.
Commenting on a visit tomorrow, Tuesday, July 26th , by Social Protection Minister, Leo Varadkar, to Meath St Credit Union, one of 30 credit unions involved in the pilot PMC launched last
November, Brendan Whelan, CEO of SFF, and instigator of the initiative, said that the clear support of the Minister and Department staff, reflecting the commitment given in the Programme for Government, meant that a realistic countrywide alternative to the high cost moneylending loans, in which hundreds of thousands of families are trapped, was now in the offing.
The pilot Personal Microcredit scheme was launched last year following publication of a joint SFF - Central Bank report on such schemes in other countries in April 2015. It involved a range of stakeholders including the credit union movement, the Central Bank of Ireland, Citizens Information Board, MABS, the Departments of Social Protection and Finance and An Post. Loans averaging less than €500 were provided to almost 1,300 social welfare applicants.
It is planned to roll out the scheme across the credit union network during 2016 and 2017.
According the Brendan Whelan, CEO of Social Finance Foundation, the initiative reflects the mission of the Foundation – “Finance for Social Good”. “This is a clear example of using social finance to benefit the individuals and families who can least afford to pay interest rates of up to 188% to money lending organisations. The credit unions are uniquely positioned to provide the alternative to such hugely expensive loans.”
“We look forward to working with the credit unions, the Department and other stakeholders in this process to ensure the effective and smooth roll-out of personal microcredit facilities in the months ahead,” Brendan Whelan said.
ENDS
Further Information on this media release:
John Gallagher, John Gallagher Consulting. Tel. 087 936988
