MICRO-LENDING SCHEME MUST BE DELIVERED – DOHERTY

first_imgSinn Féin Finance Spokesperson Deputy Pearse Doherty has called on the Government to fulfil its pledge to introduce a new personal microcredit scheme to assist people who have no or limited access to loan finance.Pearse Doherty TDThe proposed scheme, which has yet to be formally introduced, was advocated in a report by the Social Finance Foundation and the Central Bank of Ireland, and envisages making loans of between €500 up to €2,000 available to anyone currently ineligible for mainstream banking or credit union loans, subject to repayment capability. The document also proposes that such a scheme be administered through the credit union movement.Deputy Doherty said there are thousands of families and households across this state that are unable to access credit for relatively small amounts which they need to meet sudden financial requirements and unexpected bills. “Scenarios such as the family car breaking down, home repair bills or back-to-school costs can often be a nightmare for families particularly if they have been refused a loan by an institution due to pre-existing debts, a poor credit rating or a perceived inability to repay.”“These families are left with little or no choice but to borrow money from moneylenders at extortionately high interest rates, with even licenced moneylenders charging borrowers as much as 260% interest per annum.”“The report also highlighted statistics which have been handed over to the Department of Social Protection showing that 54.4% of households are unable to afford what is classified as an ‘unexpected expense’, while also claiming that 17% of households are becoming indebted due to the imposition of ‘ordinary living expenses.’”“Sinn Féin believes that a microloan scheme is urgently required to cater for the thousands of people who so desperately rely on different types of moneylenders to meet their financial obligations and to cover the costs of essential expenditure.” “Such schemes exist and operate quite successfully in other jurisdictions and they have been designed to reduce dependency on unregulated moneylending and high interest lenders.”“My party colleague Deputy Aengus Ó Snodaigh raised this very issue with the Minister before the Dáil summer recess as it’s our belief that a suitable scheme which aims to give financial relief to the thousands who are trapped in this debt cycle must be a priority for any government which is serious about tackling this issue.”“While such a scheme would be of great benefit, it must also be fair to the borrower. This is why when the Dáil resumes next week, I intend to raise this matter with the Social Protection Minister where I will be asking her to give a definitive timeframe as to when she envisages a scheme will be introduced, and for her to clearly outline the specifics of any such scheme including the average term for loans as well as the monthly interest rates which will be applied to them.”MICRO-LENDING SCHEME MUST BE DELIVERED – DOHERTY was last modified: September 17th, 2015 by StephenShare this:Click to share on Facebook (Opens in new window)Click to share on Twitter (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to share on Reddit (Opens in new window)Click to share on Pocket (Opens in new window)Click to share on Telegram (Opens in new window)Click to share on WhatsApp (Opens in new window)Click to share on Skype (Opens in new window)Click to print (Opens in new window) Tags:donegalGovernmentloansPearse Dohertylast_img

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