ANTI-poverty campaigners in the Malvern area are delighted with how a venture to create a new loan scheme is going.

The Malvern Credit and Debt Campaign is starting up a no-interest loan scheme, based on one which is currently proving successful in Tenbury Wells.

In January, the group launched an appeal to raise £5,000, which will provide initial funding for the loan scheme.

Now, thanks to the generosity of Malvern people the target is a good deal closer.

“Amazingly, after only a few weeks we are almost halfway to meeting our target,” said Cathy Jackson-Read of the campaign.

“This scheme which will support the local economy as well as help to stop local people getting into a cycle of debt from high interest lending has really caught the imagination. We have received donations from over a dozen people ranging from pensioners to young families."

Among the donations was one from members of the coffee shop at the Octagon Centre in Poolbrook, who donated £25 they raised with their Christmas raffle.

“This scheme is really needed,” said Chantelle Brookes, one of the coffee shop regulars. “High-interest lenders regularly knock on doors in this area and many people have been trapped in high cost loans which can take years to repay even for small amounts of money.”

The proposed no-interest loan scheme will provide interest free loans to a maximum value of £400 to people on low income in receipt of Working Tax Credit and other benefits.

Loans will be available for essential purchases such as white goods, or the means to access employment or education such as travel passes, school uniforms and equipment.

The scheme does not provide cash loans but works with local suppliers of goods and services to provide goods directly to lenders at competitive prices thus supporting the local economy as well as local people.

South Worcestershire CAB will provide office support and Malvern Hills District Council and Fortis Living have each kindly agreed grant funding to get the scheme off the ground.

If you would like to help with the fund raising campaign or to donate please contact cathyjacksonread@gmail.com or on 07814 913705. Whilst donors won’t get their money back, they will have the satisfaction of knowing that their donation will be continually recycled, helping dozens of people on low incomes to access essential goods now and in the future.