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Iceland launches interest-free loan scheme to help struggling shoppers
Customers will be able to repay their loans in weekly payments of £10
Iceland has launched an interest-free loan scheme in a bid to help customers struggling with the soaring cost of living.
The frozen foods retailer will now give customers the opportunity to take out interest-free ‘micro loans’ on a pre-loaded card between £25-£100 to cover their grocery shop.
The loans, organised in partnership with non-profit lending company Fair for You, can be used to purchase everyday items, all while enabling financially vulnerable customers to cover grocery bills or ‘smooth out gaps’ in their income.
Customers will be able to repay their loans in weekly payments of £10, with the option to overpay if convenient.
They will also have the freedom to set the day when the repayments have to be made.
Customers can only take out one loan at a time, during six windows throughout the year that coincide with school holidays – this is to ensure parents can keep their cupboards stocked during when free school meals aren’t an option.
Managing Director of Iceland Foods, Richard Walker, said: “More than ever, people are struggling to purchase much needed everyday items during this relentless cost of living crisis, and fresh thinking is required by business and government to find workable solutions.
“At Iceland, as part of our Doing It Right: Right Now, we’re constantly exploring new ways to help our customers with innovative solutions that deliver real impact.
“With Fair for You, we have rolled out Iceland Food Club to offer our customers even more support, helping them manage essential spending on their own terms.
Iceland
“To those striving to worry less about how they will afford essential goods, this ethical credit scheme delivers real help when most needed and I believe it will make a valuable contribution to breaking the cycle of food poverty in this country.”
Simon Dukes, CEO of Fair for You, added: “Nobody should have to go hungry in order to feed their kids, or be forced into making impossible decisions between putting food on the table or having hot water.
“Our mission at Fair for You is to provide affordable credit to those who need it, to ensure they are not ripped off by exploitative lenders.
“We’re proud to be working with Iceland to operate the Iceland Food Club. Now that it has launched nationally, it gives plenty more families the opportunity to get the groceries they want, improve their diet and enjoy family meals together, while also getting a better handle on their finances.”