'It Makes Sense' as credit union loan scheme made permanent

The scheme offers small loans at a low interest rate for people in receipt of social welfare payments.

The Minister for Social Protection, Minister Heather Humphreys announced permanent support to the Credit Union Small Loan Scheme ‘It Makes Sense’

The initiative aims to support low income individuals and families by giving them access to credit union loans and it is to be made a permanent fixture within the financial institution.

It Makes Sense offers small loans at a low interest rate for people in receipt of a social welfare payment.

Most repayments under the scheme are made through An Post’s Household Budgeting facility, which incurs a 25c fee for every transaction that is borne by credit unions. The Department of Social Protection has been paying these fees on a pilot basis since January 2020.

Minister Humphreys said she is “delighted” that ‘It Makes Sense’ is to be made permanent.

“This scheme is an important low-interest credit option for people in receipt of social welfare supports, who are in need of small loans and who may otherwise turn to high-cost credit providers,” she added. “The payment by my Department, on a permanent basis, of the transaction fee for repayments through the Household Budgeting Facility will ensure the continued availability of this small but important loan scheme across Ireland.

“I know from my days working in a Credit Union the challenges placed on families and individuals on low income who are in need of small loans. I welcome that over half of credit unions are offering this scheme, in over 280 locations, and that it is available to non-members as well as members.

“I am delighted that, thanks to my department’s support, we will see the continued availability of ‘It Makes Sense’ as an important small loan alternative to high-cost credit, and as a stepping stone for people to build up a good credit history and move on to standard loans from their credit union”.

Meanwhile, welcoming today’s announcement, David Malone, Chief Executive Officer of the Irish League of Credit Unions added: “I welcome the Government’s extension of the payment of transaction charges for credit unions participating in the Personal Microcredit initiative, known as the It Makes Sense loan scheme.

"This scheme was established in 2017 and is an alternative to high-cost credit providers. For me, this niche but important loan scheme also highlights the essential role Credit unions play in communities around Ireland. Credit unions are in every community in Ireland and provide savings and loans to members on a not for profit basis.”