PwC’s latest analysis of NILS covers a total of nearly 4,000 loans, with a total value of £2.1m – at an average loan value of £591.

In addition to the headline figures mentioned above, PwC’s interim report finds that:

• Loan health currently seems strong, and there appear to be few issues in repaying loans. This is especially positive in the context of rising default rates across the industry since 2022
• Most borrowers are satisfied with the NILS process and with their lender
• Most loans are taken out either to pay for buying, repairing or replacing household items (40%), followed by paying bills (19%), and a financial emergency (8%). A range of other reasons were also given by borrowers, including car repairs, funeral costs and healthcare costs.
• Most loans (88%) are taken out with a 12-18 month repayment term

The report also makes recommendations to Fair4All Finance to make sure learnings are maximised over the remainder of the pilot. These are to:

• Consider how to make sure that loans are more evenly spread across the partner lenders, rather than having certain lenders operating at a higher or lower volume
• Consider how to further diversify the NILS customer base
• Consider whether loan principals can be increased to suit borrower needs
• Continue to check that lenders are following full product and underwriting rules
• Examine whether there are other potential changes to the scheme which could ensure that borrowers are supported holistically, for example through referrals or handovers to other organisations

Fair4All Finance is in the process of working with the NILS lending partners to implement these recommendations as the pilot continues.