Iceland launches interest-free loans scheme to help customers through cost of living crisis
Iceland has teamed up with charity-owned lender Fair for You to introduce an interest-free customer loans scheme to help people through the cost of living crisis.
Customers who join the Iceland Food Club can benefit from micro loans that are made available on a pre-loaded card, with repayments set at £10 per week. They can then choose which day of the week they make their repayments and may also overpay.
During a pilot phase of the scheme, customers paid interest on loans. However, Iceland has now decided to make all loans completely interest-free for the national roll-out.
The scheme is part of Iceland’s wider Doing it right; right now strategy that is designed to support the communities it serves.
Richard Walker, managing director of Iceland Foods, said: “More than ever, people are struggling to purchase much needed everyday items during this relentless cost of living crisis, and fresh thinking is required by business and government to find workable solutions. At Iceland, as part of our Doing it right: right now we’re constantly exploring new ways to help our customers with innovative solutions that deliver real impact.”
Iceland has specified that customers can only take out one loan at a time during six windows throughout the year which coincide with school holidays. The retailer said limiting loans in this way will ensure that they will only be used to “smooth out” incomes rather than being relied on all year round.
Walker added: “With Fair for You, we have rolled out Iceland Food Club to offer our customers even more support, helping them manage essential spending on their own terms. To those striving to worry less about how they will afford essential goods, this ethical credit scheme delivers real help when most needed and I believe it will make a valuable contribution to breaking the cycle of food poverty in this country.”
Customers will be able to use their credit via the the card both in-store and online. Successful applicants receive a £100 credit limit and on joining Food Club can load an initial top-up of £25 to £75 onto their cards.
