Charity Bank loans on the increase

Loans approved by Charity Bank since Big Society Capital agreed to invest at the end of March, have increased by 43% in number and 220% in value, compared to the same period last year.

On 28 March 2014, Big Society Capital agreed to make its largest ever single investment – up to £14.5m of ordinary shares in Charity Bank in three successive tranches, between 2014 and 2016.

Since then, the bank, which takes savings from individuals and organisations, and lends solely to social sector organisations, has approved 40 new loans, worth just over £14.5 million, compared with 28, worth almost £4.5 million, over the same period last year.

Patrick Crawford, chief executive of Charity Bank, said: “Social sector demand for loans continues to increase, and we have plenty of capacity to lend, so we are inviting charities and other social sector organisations to come and talk to us.

“Charity Bank is the bank of choice for social sector organisations that need a loan, and we can lend at competitive rates from £50,000 up to £2.5m, and larger amounts in partnership with other social lenders.

“When you borrow from our bank, you are borrowing from a bank that knows and understands the sector, that takes care that its loans are on terms, which are appropriate for you, that will work with you if your plans change or you suffer financial stress later, and that will have similar values to you.

“And, as you borrow and make repayments to Charity Bank, you are putting money back into the sector, because you know it will be re-lent to help other charities and similar organisations achieve their goals.”