Jim O'Callaghan
Question:280. Deputy Jim O'Callaghan asked the Minister for Social Protection when it is proposed to extend the microloan scheme operated by the credit unions to the credit union in Rathmines. [28337/16]
View answerTuesday, 4 October 2016
Questions (280)
Written answers
A Personal Micro Credit Scheme providing for small scale loans by Credit Unions to borrowers who have difficulty accessing low cost credit has been piloted in 30 credit unions. The loans under the scheme range from €100 to a maximum of €2,000, and have a maximum interest rate of 12% per annum. Over 1,200 loans have been drawn down under the Scheme to date with an overall value of over €720,000. The average individual loan value drawn down is €500. The focus of the pilot scheme was social welfare recipients who availed of the loans from their Credit Union and were facilitated, with their consent, in the repayment of such loans through the Household Budgeting facility, operated by An Post. The deductions from their weekly social welfare payments are then transmitted on to the relevant Credit Union.
The Programme for a Partnership Government provides for the rollout and extension of the Personal Microcredit Scheme. Following an evaluation of the pilot, the Implementation Group, which is chaired by my Department and comprises all relevant stakeholders, is working towards this aim. Incremental progress is being made towards extending the geographical coverage of the loan scheme through efforts to recruit Credit Unions to participate in the scheme. To help advance this aim, I have written to all Credit Union Chairpersons and Managers, to encourage participation in the scheme. Ultimately, participation in the scheme is a matter for each individual Credit Union to consider.
I hope this clarifies the matter for the Deputy.