Interest Rate Rise to Help Credit Unions

The government has launched a consultation on raising the maximum interest rate credit unions are able to charge.  Under proposals released by the Treasury, the mutual financial organisations would be able to charge 3 per cent a month interest on loans, rather than the current limit of 2 per cent. The Treasury said this would allow unions to ‘break even’ on smaller, short-term loans, where they can currently lose money due to high administration costs.  Read more and download a copy of the consultation on the Treasury website or check the Consultations page in this blog.