Skip to main content
Normal View

Personal Micro Credit Scheme

Dáil Éireann Debate, Thursday - 25 February 2021

Thursday, 25 February 2021

Questions (179)

Gary Gannon

Question:

179. Deputy Gary Gannon asked the Minister for Social Protection the number of "It Makes Sense" loans that have been taken over in 2018, 2019 and 2020, in tabular form; if there has been a noted increase since March 2020 due to the Covid-19 pandemic; and if she will make a statement on the matter. [10951/21]

View answer

Written answers

The Personal Micro Credit Scheme (PMC) provides for small scale loans, known as "It Makes Sense" loans, ranging from €100 to €2,000, by Credit Unions to borrowers in receipt of social welfare payments who may have difficulty accessing low cost credit. Currently 107 credit unions at some 281 locations are participating in the Scheme.

An Post facilitates the repayment of these loans for social welfare recipients who receive their payment through a Post Office, by utilising the Department of Social Protection's Household Budgeting Facility. As part of a pilot scheme since Q1 2020, the Department has funded the weekly administrative cost for access to the Household Budgeting Facility.

The Department does not have access to the overall number of It Makes Sense loans. Data from the Household Budgeting Facility is a proxy indicator, although the overall number of borrowers is likely to be greater given that some borrowers repay these loans by direct debit, while others qualify for and receive standard loans. At present, there are just over 6,500 Household Budgeting deductions per week for repayment of It Makes Sense loans. This is comparable to similar weekly figures of between 6,000 and 7,000 throughout 2018, 2019 and 2020.

I trust this clarifies the matter for the Deputy.

Top
Share