Alistair Darling announced his annual
Budget yesterday (April 22nd), which included measures for
increasing
credit union
lending, and the
Association of British Credit Unions Limited (Abcul) has
welcomed the move.
The amount of
money available to be borrowed through
credit unions will be boosted by measures announced in the new
Budget report, which will help those in financial difficulties who
would otherwise turn to
loansharks and high-cost doorstep
lenders, according to Abcul.
Recent research by the organisation found that 70 per cent of
credit unions had seen an increase in demand from low-income
borrowers in the last year, with 32 per cent saying this rise was
significant.
Mark Lyonette, chief executive of Abcul, said: We're
pleased to see the government recognises that, whilst it is
important to make sure people who are having trouble paying
mortgages are given assistance, there is also a need to ensure
that money is available for
unsecured lending for people on low incomes.
Price comparison site moneysupermarket.com recently found that
loan rates had begun to drop after 12 months of rises.
