NHF Affordable Loans

dancingfairy

I've seen this on the BBC today - aparently the National Housing Federation are launching an affordable loans scheme. The apr to start with is 29.9% rising to 49.9% :eek::eek:
I know it's to prevent people using doorstop lenders but it's a pretty hefty apr.
http://www.bbc.co.uk/news/business-11390643
What do you think?
df
P.S I just hope that they are also helping people get basic bank accounts and help with their debt problems as well.

Tixy

Intersting article.

It certainly would be better for people than payday loans/provident/loan sharks. I agree that the APR sounds a little high but I guess its okay for people who would want to use it instead of a payday loan, ie just for a month or so but over a year or more its going to add up.

I wonder if it will be able to be used to help people get away from payday loans that they already have, as the problem with most credit unions is that they won't lend until you start to save with them (although I know some have specific rules when helping people get off payday loans).

Knowing how desperate people get for quick loans I can imagine that even the 45min interview they mention would be too much for some people, and they'd still rush to a payday loan.

Lets hope its well publicised when it goes national.

podperson

Wow 49.9% apr is even worse then the payday loan people!! I guess they must give you longer to pay it off but for them to say they are trying to help people struggling and then charge that kind of interest seems a complete contradiction to me.

Tixy

Payday loans are much higher than 49.9%, try well over 1000%, eg 2278% apr at quickquid and 2689% apr at wonga or even provident 272% apr