Fair for You provides affordable microloans to people who are excluded from mainstream finance. Its lending is designed to give lower-income households an alternative to high-cost credit when they need to pay for essential goods or manage unexpected costs.
With support from the Aviva Foundation, Fair for You and the Fair Credit Charity will build on an initiative developed with Crowdfunder that combines affordable credit with community giving. Customers who keep up with their repayments can have the final portion of their loan supported through public donations, rewarding positive repayment behaviour while creating extra space in household budgets. An initial pilot found that customers offered this support were 34% more likely to repay on time.
The project will test the model at greater scale across the UK, with the aim of improving repayment, strengthening financial resilience and developing an approach that could ultimately be adopted by other lenders, retailers and social finance organisations.