CHANGE offers needy residents a lifeline with affordable loans

A unique partnership scheme to help residents get affordable credit has been launched and is already proving a big hit.
The CHANGE community finance partnership consists of 12 London-based housing associations and is led by L&Q.

Last month CHANGE started offering loans to residents of between £50 and £2,500, and the response so far has been excellent.
The CHANGE team have had more than 70 enquires from residents and three small loans have already been approved. Other larger loans are in the pipeline for approval.

The scheme has been launched at a time when many doorstep lenders and loan sharks are coming under the spotlight because of the exorbitant rates of interest they charge.
Typical APR of a CHANGE loan is 28 per cent. While this may sound like a lot to people who use High Street banks, these loans are for people with no savings who are unable to get credit from High Street lenders for whatever reason.
Their only alternative would be to take out a loan with a doorstep lender or loan shark, where the average APR is more than 150 per cent. It’s not uncommon for some loan sharks to charge more than 1,000 per cent interest!

Gail Biggerstaff, who is leading CHANGE for L&Q, said: “We are not in competition with anyone, we are simply offering an alternative and affordable means of getting credit.
“All the partners have invested in this and residents will only be granted loans for needs, not wants. For example, one woman who has already had her loan approved needed the money to buy essential furniture for her new home. Loans would not be approved for buying luxury items.”
She added: “At the moment the scheme is specifically for residents of the partner housing associations, but I’ve been really heartened by the response so far and in the future we may be able to offer services to a wider audience.”

The loans are easy to apply for and a quick decision is given. All applications are looked at individually and repayments are by direct debit. Successful applicants who don’t have a bank account can be helped by the CHANGE team to open an account suitable for them.

The housing associations involved are Circle Anglia, East Thames, Family, Gallions, Genesis, Horizon, Hyde, L&Q, Metropolitan Housing Trust, Mosaic, Orbit Bexley, Threshold and Wandle.
To apply call 0208 535 2960, email change@lqgroup.org.uk or write to CHANGE at Osborn House, Osborn Terrace, London SE3 9DR. You can also ask your housing association for a referral.

Case study

Natasha Anderson from Lewisham was the first resident to successfully apply for a CHANGE loan.
She needed £500 to buy furniture for her home and was struggling to raise this.
She said: “I needed money to buy a new bed because mine was broken and I needed a fridge.
“I wasn’t able to get a High Street loan and taking a loan from a doorstep lender was the last thing I wanted to do because the interest rates were so high.
“I wasn’t really sure what I was going to do, but then I read about the CHANGE scheme and once I got in touch everything moved really quickly. I had a one-to-one meeting which was very helpful because we were able to work out a manageable repayment plan.”
She added: “This CHANGE scheme is a really good idea and I’ve already been telling other people about it.”

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