Community Development Finance Institutions are social enterprises that support communities by providing affordable finance that would otherwise not be available. By making loans, they are able to recycle this finance again and again into neighbourhoods where it is most needed.
These organisations lend money to those unable to get finance from high street banks. They fill the gaps in mainstream lending, addressing market failures and offering an affordable alternative to high interest doorstep lenders. Many are also Community Interest Companies and are required to reinvest any profits in the organisation and demonstrate their services serve a community purpose.
In Scotland, there is one Community Development Finance Institution offering personal loans to individuals living within a 25 mile radius of Glasgow, trading under the name Scotcash. Go to the Scotcash website to find out more.
References: Scotland’s Financial Health Service. (n.d,). Retrieved from https://www.scotlandsfinancialhealthservice.gov.uk/community-development-finance-institutions