Rate move helps credit union loans

AOL Money Staff

Credit unions will find it easier to offer affordable short-term loans from next year under Government plans, enabling low-income borrowers to become less reliant on payday lenders.

New legislation will be introduced this autumn which will increase the maximum interest rate credit unions can charge on loans from 2% to 3% a month, with effect from April 1 next year.%VIRTUAL-SkimlinksPromo%