New proposals unveiled today will see the Government issuing loans of up to €1,000 in a bid to keep people away from moneylenders.
Agencies like St. Vincent de Paul and the Money Advice and Budgeting Service (MABS) will work on the scheme, which is likely to be started in September.
The Department of Social Protection will lead the Personal Microcredit Scheme, and loans are expected to be approved “within an hour”, according to sources, after a few checks on the person’s credit background.
The money then would be made available through post offices and credit unions around the country.
An interest rate of up to 12% will be applied to the loans.