The Sound Pound consortium of Greater Manchester credit unions has launched a new loan product with the backing of the regional combined authority.
It says the Sound Pound loan provides a “safe solution’ for local people who are experiencing squeezed finances as the cost of living soars.
According to the Greater Manchester Residents Survey, 24% of Greater Manchester residents are seeking information or support for the first time, with the cost of living crisis bringing financial concerns to people who have not struggled with money before.
The Sound Pound loan is available for any amount between £200 and £1000 and is open to anyone with squeezed finances who is new to credit unions.
Sheenagh Young, chair of Sound Pound and CEO of South Manchester Credit Union, said: “With the ongoing cost of living crisis, we know there are many people living in our communities who usually get by ok but are now experiencing a real squeeze and are unsure where to turn for help.
“As credit unions, we can help and our new Sound Pound loan is our response to help local people get back on track and avoid any long term impacts of inflation and rising household costs.
“Credit unions have existed in local communities across the UK for over 50 years and responsible lending is in our DNA. We work with individuals to help them through challenging times so that they can grow their financial resilience and kickstart savings habits for the long term, whatever their income level.”
Andy Burnham, mayor of Greater Manchester, said: “Credit unions have a key role to play in the financial crisis that we all now face. I’m delighted to see them come together across Greater Manchester to provide a local and ethical alternative to the high-interest payday loan companies and loan sharks.
“Credit unions represent a positive, safe solution to short term credit pressures.
“Sound Pound is a fantastic initiative that shows Greater Manchester is doing things differently and coming together to support each other.”
All eight Greater Manchester community credit unions have signed up to the initiative, including Cash Box Credit Union (Tameside), Hoot Credit Union (Bolton), Manchester Credit Union, Oldham Credit Union, Salford Credit Union, South Manchester Credit Union, Stockport Credit Union, and Unify Credit Union (Wigan).
Loan applications can be made digitally or face to face. For more information, or to apply for a Sound Pound loan, visit soundpound.co.uk
