Iceland’s initiative to support its customers during the festive season returns in the form of an interest-free microloans scheme, which will continue into 2025.
The latest phase of the frozen food retailer’s ‘Food Club’ scheme enables customers to borrow up to £100 without interest through a preloaded card, as reported by The Grocer. This card can be utilised at Iceland stores or The Food Warehouse. Repayments are structured at £10 per week, although customers have the option to repay more, offering flexibility in managing their finances.
From 16 December, existing customers will have the opportunity to top up their cards in preparation for Christmas. Meanwhile, new customers interested in the scheme can apply via the online lending platform Fair For You’s website.
Originally launched at the start of 2022, the scheme positions itself as an ethical alternative to high-interest lenders and unregulated money lenders. By August 2022, the initiative had expanded nationwide, serving over 23,000 families by September 2023. It had dispensed over £5 million, addressing the needs of financially vulnerable individuals with microloans ranging from £25 to £100.
Richard Walker, executive chairman of Iceland, highlighted the significant impact on families, particularly during challenging times. “For many families, Christmas is shaping up to be one of the hardest in recent years. While other businesses have been very vocal in feeling sorry for themselves of late, Iceland decided that we need to roll up our sleeves and get on with the job of supporting our customers,” he stated. The renewed phase of the Food Club aims to alleviate financial stress during the holiday season, offering peace of mind to its participants.
Iceland’s microloans scheme demonstrates a strong commitment to supporting families through financial difficulties, allowing for a more manageable Christmas season and countering the negative influence of predatory lenders.
