Iceland supermarket has launched an interest-free loan scheme to help shoppers avoid food poverty. The interest-free loans, organised in partnership with Fair for You, of amounts between £25 - £100, are available on a pre-loaded card, and can be used to purchase everyday items, enabling financially vulnerable customers to cover grocery bills or "smooth out gaps" in their income.
After using the card, customers will repay the loans set at £10 a week, with the option to overpay if convenient. Additionally, customers can set the day when the repayments happen.
The loans are available one loan at a time over six windows of the year to coincide with the school holidays. The retailer says through limiting the loans it helps customers smooth out incomes, while not needing to rely on them all year-round.
