| The roll-out of a new microfinance institution (MFI) | | | | most." |
| could see some of the most financially-excluded | | | | Meanwhile, pointing to findings from HM Treasury, the |
| people in Britain gain access to low-rate loans, it has | | | | organisation reported that around one out of 12 British |
| been announced. | | | | households are often unable to access mainstream |
| Based in London, the Community Money scheme has | | | | loans and other forms of credit which offer |
| been launched to help individuals, community groups | | | | competitive rates of interest as they are deemed to |
| and businesses take out a loan and other financial | | | | be of greater risk when it comes to making |
| products. The first MFI in the country to be set up as a | | | | repayments. In addition, such consumers were stated |
| Community Interest Company (CIC), the project will | | | | to be shut off from the provision of basic financial |
| see two fiscal schemes created to aid the | | | | advice which, if granted to them, could help them to |
| monetarily-excluded parts of society. Starting later this | | | | look for low-rate loans and make repayments with |
| month, the Community Lottery, a weekly 1 pound | | | | greater ease. |
| sweepstake, has been launched which will see its | | | | Consequently, those Britons on a low income are often |
| proceeds go towards a loans and grants fund, which is | | | | forced to rely on unscrupulous lenders, who are |
| due to start operating in the early stages of 2008. | | | | reported to charge annual interest rates of up to 1,500 |
| Meanwhile, the Community Money Financial Inclusion | | | | per cent for short-term borrowing. Such companies |
| Programme has been developed to help combat the | | | | are said to target "the people who least can afford to |
| problem of financial deprivation among low-income | | | | pay such high prices for essential goods and services". |
| consumers. It will also provide support to those Britons | | | | Earlier this year, R3 - the Association of Business |
| forced to take out high-interest lending and the | | | | Recovery Professionals, the trade body representing |
| associated debt problems in paying back loans. As a | | | | insolvency practitioners, claimed that recent proposals |
| result, the move could see borrowers develop access | | | | by the government could help the financially-excluded |
| to more competitively-priced loans. In addition, the | | | | avoid unscrupulous lenders and instead access |
| programme will see the implementation of financial | | | | low-rate loans as they adopt a more responsible |
| inclusion strategies on the behalf of regeneration | | | | approach to their finances. Nick O'Reilly, vice-president |
| agencies, local authorities and housing providers. | | | | for R3, urged those struggling with numerous demands |
| Commenting on the announcement, Puck Markham, | | | | on their money such as secured loans and utility bills to |
| founder and chief executive for Community Money | | | | avoid loan sharks and instead seek advice from |
| CIC, said: "In today's economically-polarised society, the | | | | respectable professionals. Yet those consumers |
| more affluent and socially aware individuals are looking | | | | finding themselves nearing an untenable money |
| to regulated investment opportunities that benefit their | | | | management position may want to take out a bad |
| local communities. Community Money has been set up | | | | credit loan as a means of getting back on their |
| to provide that investment vehicle which in turn enables | | | | financial feet and helping them to repair the damage |
| the provision of affordable loans, community grants | | | | done to their borrowing history. |
| and other financial services to those who need it | | | | |