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Credit union launches loans service

Manx Community bank branches out

The Island's first credit union is to start offering low interest loans, after building-up a sizeable pot of savings.

The Manx Credit Union has taken £200,000 in deposits since its launch late last year, has 220 members, with 30 more signing-up each month.

The community bank aims to help residents on low incomes and those  with poor credit histories, who can't access traditional banks, start to save regularly.

It now wants to offer loans of between £50 and £5000 at a rate of 1% per month - which is 12.7% APR, substantially less than rates charged on the high street.

Credit Union Chairman David Talbot says the loans will help people purchase goods and services in the local economy at an affordable rate:  

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