Our research and extensive lived experience conversations with the people that could supported by this product, tell us that access to small sums of safe, affordable credit can be vital in helping people deal with unexpected costs and managing low or volatile incomes and make a real difference to positive outcomes at important moments in their lives.
The success of the Small Dollar Loan Scheme in the US has shown that it is possible to lend to this customer cohort safely, sustainably and at scale, as lenders have moved away from using CRA data and rely on current account transaction data to inform lending decisions
As part of our Small Sum Lending pilot, we intend to initially allocate up to £25m across multiple lenders (capped at up to £10m per lender) to increase access to small sums of credit for people in financially vulnerable circumstances otherwise unable to access mainstream credit.
The Bidder Application Pack is now available to download using the link below. This provides additional information regarding the pilot, eligibility criteria, and how to apply to access our funding.
