Credit unions report high personal loan demand

22 September 2008

Credit unions have seen an increase in applications for personal loans, according to a leading body, in a further sign of the difficulties surrounding the loans market.

With loans becoming increasingly hard to obtain on the High Street due to lenders tightening their lending criteria, increasing numbers of people have turned to credit unions as a source of finance.

Mark Lyonette, chief executive of the Association of British Credit Unions (ABCUL), said: “Credit unions have been affected in different ways by the reduction in supply of consumer credit. A number have seen a sharp increase in people approaching them for loans.”

The news came as the Bank of England announced an extension to their Special Liquidity Scheme, in an attempt to stimulate the loan and mortgage markets.

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