Iceland Foods is bringing back its interest-free microloans for the holiday season, running through 2025 to aid customers.
- The scheme allows customers to borrow up to £100 interest-free, available on a preloaded card used at Iceland or the Food Warehouse.
- Initial weekly repayment is set at £10, but participants can choose to pay more if they wish.
- The program aims to help financially vulnerable families, opposing ultra-high-interest lenders or loan sharks.
- Since its launch, Iceland’s Food Club has provided over £5m in assistance to more than 23,000 families.
Iceland Foods has announced the return of its interest-free microloans this holiday season, with plans to continue this initiative throughout 2025. This scheme is established in partnership with online lender Fair For You. The program allows consumers to borrow amounts up to £100 on a preloaded card, specifically to be used at Iceland or the Food Warehouse.
Customers are encouraged to make a standard repayment of £10 per week on the borrowed amount. However, there is flexibility offered for those who wish to clear their debts sooner by paying additional amounts weekly. This provision offers a cushion to families managing tight budgets, especially during the festive season.
The initiative, launched initially in 2022, aimed to provide an ethical financial solution amidst the presence of ultra-high-interest lenders or illegal loan providers. Since its wider release in August 2022, more than 23,000 families have benefited from over £5 million provided through the scheme. It offers microloans ranging from £25 to £100, filling essential gaps in household finances.
Iceland’s executive chairman, Richard Walker, emphasized the importance of the scheme in mitigating financial strain, particularly during the holiday period. He noted, “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.”
The Food Club’s interest-free loans are designed to prevent families from resorting to predatory loan sharks or unregulated money lending options. The initiative reflects Iceland’s commitment to aiding those facing financial hardship, ensuring they can enjoy the holiday season with peace of mind.
Iceland Foods continues to support families by offering interest-free microloans, sustaining their dedication to customer welfare through innovative financial assistance.
