Loan scheme for cash strapped residents is extended

The authority has agreed to extend its loan scheme - operated through two local credit unions - for a third year after hearing that 123 families have been helped financially since the project began in February 2009.

Cabinet members agreed then to make £250,000 available to residents who had been disadvantaged by the economic downturn. Part of a wide package of support for local residents and businesses, it was made available through the Rothersave and LASER credit unions - both of which have recently moved into more visible premises within Rotherham town centre.

Since the scheme began 98 families have been given small loans to help them pay 'rent-in-advance' to they can move into rented accommodation after they lost their own properties. The loan scheme has also helped a further 25 residents experiencing other financial debts and bills, that if left unsettled, could have led to escalating actions being taken by creditors.

The funding is available to those people across Rotherham who have experienced a change in their circumstances, which has resulted in a negative impact to their finances. This would include changes such as recent redundancy or a reduction in working hours, partnership breakdown, increased costs or unforeseen extra expenditure.

Anyone wishing to apply for a loan under this scheme should contact either the LASER credit union on 01709 836500 or the Rothersave credit union on 01709 514263 for an application form. Terms and conditions will apply and all loans sanctioned will be repaid at an affordable rate.

If you need financial help but may not fit these criteria, then individuals can also contact the credit unions for other available loan schemes. The two organisations also offer savings schemes at very competitive interest rates.

LASER has moved into the Old Town Hall while Rothersave can now be found within the Rotherham Markets complex. LASER's move has been supported by £20,000 of funding from the Local Area Agreement Reward Grant while Rothersave's move has received £1,000 from the authority to help towards its moving costs to its new markets site.

Liz Thompson, Manager of LASER, said that since the opening of their new premises in the Old Town Hall they had already seen an increase in customers for both savings and loan products.

She added: "With this move of premises and support from the Council, we are now able to provide a local alternative to the big banks and the door step lenders for local people.

"It is estimated that £3.5million leaves the Rotherham economy each year through excessive interest charges, often paid by the most financially vulnerable in our society. LASER Credit Union, being a not-for-profit organisation, is able to offer affordable loans and competitive savings rates to new and existing members. This means that the money would stay within the local economy to support local people.

"It is vital that LASER recruits new savers, through payroll savings, standing orders, lump sum investments and regular savings to provide a solid base for expansion of the business, to support more people, both with affordable loans and with employment as the business grows. LASER is hoping to recruit at least four additional staff over the next five years, to strengthen the existing experienced staff base.

Pete Briggs, Operations and  Development Manager for Rothersave Credit Union, said the credit union is keen to continue  to work in partnership with the Council to deliver the much  needed credit crunch loan scheme to the residents of Rotherham.

He added: "We are also delighted to have relocated from inside the R.A.I.N building to a shop frontage near the main entrance of the  building. This move makes us more visible and even more accessible to the  people of Rotherham  and we have received a lot of positive comments from its members with regards to the increased privacy that the new premises offer them.

"Rothersave specialises in providing payroll saving schemes and has provided this vital service since 1998 to Rotherham Borough Council staff. Other employers are encouraged to consider offering this facility to their staff as a way of improving their financial well being particularly as we have recently introduced Instant Loans to both new and existing members and is known as the financial service that cares."

Savings in both credit unions are covered by the Financial Services Compensation Scheme - credit unions are authorised and regulated by the Financial Services Authority. The law regulating credit unions is due to change this year and this will allow groups and businesses to invest in credit union products as well as individuals.