Who or what is a CDFI?
A CDFI is a Community Development Finance Institution. If a company is registered as a CDFI, it is an ethical company which can offer loans to people who live in certain postcode areas and who may find it difficult to borrow from high street banks or building societies. This is the reason that CDFIs are included in the Northern Money directory.
No membership is needed to get a loan from a CDFI. A loan from a CDFI is much, much cheaper than borrowing money from a doorstep lender, pawn broker or pay-weekly store. However a loan from a CDFI is usually more expensive than borrowing from a credit union. CDFIs encourage their customers to become a member of their local credit union and where possible, to start to save regularly in addition to paying off their loan. In this way, the member's savings increase and in the future, if another loan is needed, they can apply for a low-cost loan from their credit union, instead of taking out a second loan from a CDFI.
3 CDFIs are included in the Northern Money directory- Five Lamps, Places for People and Cumbria Asset Reinvestment Trust (CART).
Five Lamps
The Five Lamps Organisation is a registered charity which was established in Thornaby, Stockton-on-Tees, in 1989. The organisation takes its name from a local landmark, the five lamps, built around a shrine in the thirteenth century. Five Lamps has a mission to 'transform lives, raise aspirations, remove barriers and offer choice to families, business and communities'.
As a CDFI, the Five Lamps Organisation is regulated by the Financial Services Authority and holds an Office of Fair Trading consumer credit license, which enables staff at Five Lamps to provide small loans (around £400 or less) within 7 working days to people who may find it difficult to borrow at an affordable rate elsewhere. The first part of your loan application can be done over the phone or online.
As well as loans, The Five Lamps Organisation helps people with employability (getting and keeping a job), enterprise (setting up your own business) and Entry to Employment (job skills and youth work).
Click here to find out more about Five Lamps loans
Places for People
Places for People is one of the largest property management, development and regeneration companies in the UK. They are also able to offer affordable loans to people in and around the Newcastle area who are tenants of any Social Housing Provider (Housing Association) or the Local Authority.
Places for People will look at each application on an individual basis, taking into account your personal circumstances. So, if you aren't working or if your credit history isn’t that good, you could still get a loan. Places for People charge fixed rates of interest with fixed payments and flexible terms, so you can budget with confidence.
Places for People loans provide an affordable alternative to doorstep lenders. Staff at Places for People can also direct you to debt advisory services which may be able to help you manage your debts and give you advice on any benefits you may be entitled to claim.
Click here to visit the Loans page on the Places for People website
Cumbria Asset Reinvestment Trust (CART)
Cumbria Community Asset & Reinvestment Trust Ltd is an Industrial and Provident Society Registered No 29830R. It is registered with the Financial Services Authority and licenced under the Consumer Credit Act 1974, Licence no 565982.
CART is Cumbria’s only Community Development Finance Institution (CDFI) and the only rural CDFI in the north of England. This is a sustainable, independent organisation providing financial services across Cumbria with the aim of creating social improvement and business development returns.
A 'Handy Loans' Service is offered by the Cumbrian Credit Unions and CART (Cumbria Asset Reinvestment Trust). Anyone over the age of 18 can apply for a Handy Loan regardless of circumstance. The loans are designed to offer a much cheaper interest rate than doorstep lenders, many credit cards, and those offered illegally by loan sharks.
