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Affordable ways to borrow money

If you need to borrow money, you could get a loan from a community lender who may have lower interest rates. Community lenders include credit unions or Community Development Finance Institutions (CDFI).

Community lenders can:

  • often lend you money when banks will not
  • give small amounts of money at lower interest rates than high interest lenders
  • create a repayment plan that works for you
  • give financial support and advice

Community lenders often charge less than high interest lenders for missed payments or paying money back early.

Low interest loan from a credit union

You can get different types of low interest loans from a credit union.

Credit unions are made up of a group whose members share something in common. This could be that you:

  • live or work in the same place
  • are a member of the same trade union, church or other group

If you have this in common with the credit union you’ll be able to apply for a loan. Find out more about how credit unions work.

Credit unions usually charge lower interest rates than other companies that offer loans. Credit unions will not charge you more than 3% interest each month on a credit union loan.

If you cannot repay your loan, a credit union can:

  • reduce or stop your payments for a short time
  • stop adding interest to your loan for a short time
  • help you with a new repayment plan

Find out how much a credit union loan would cost you.

Find a credit union near you.

Loans if you've a low income or you're on benefits

If you cannot get a bank loan, you could still get a loan from a Community Development Finance Institution (CDFI).

CDFIs focus on offering loans to people who find it difficult to get a loan elsewhere. You could get a CDFI loan if you’re:

  • on a low income
  • on benefits
  • cannot get a loan because of bad credit

CDFIs offer loans at a lower cost than high cost lenders and can help with advice on benefits and debt.

Find a CDFI.

More support with loans

Money Talk Team can give you advice on different ways to get help with money.

Money Helper can help you find alternatives to payday loans.

Citizens Advice offer advice and support on how to borrow money.

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