Grameen in the UK has secured £250,000 from Social Investment Scotland to provide micro-finance loans to community initiatives
An organisation that helps disadvantaged people start a business has been boosted with £250,000 of social investment.
Grameen in the UK provides micro-credit loans of up to £1,000 to kick-start small firms or help existing companies develop and grow.
Based in Glasgow, the organisation has now secured additional investment from Social Investment Scotland (SIS) through its Social Growth Fund.
The money will allow Grameen to expand its operations across Scotland and increase the availability of business loans for thousands of people who are currently not served by any mainstream financial services
Chief executive Kevin Cadman said: “The investment from SIS is a significant milestone for Grameen in the UK, helping us to achieve the scale we require to increase the affordability and availability of finance for the communities and people of Glasgow who are most in need.
“Ultimately our aim is grow our services across Scotland and then the UK, and we now have a strategy in place, backed by investment, which will enable us to start planning for the future.”
Grameen in the UK is part of the Grameen Foundation, a worldwide network of social development lenders founded by Nobel Peace Prize winner Professor Muhammad Yunus.
One company helped by the project is Cuisine Africana, a family-run takeaway and catering business serving authentic Nigerian food from its base in Dennistoun, Glasgow.
Owner Amina Hnkana joined Grameen in the UK in 2015 and is now on her third loan.
She said: “I find Grameen very beneficial. The loans are very low in interest, and for me personally it’s very easy to pay weekly. I also have the peace of mind that once I have made the full loan repayment I can get another one as you need regular cash injections to help the business run smoothly.”
“Cuisine Africana has grown a lot since I found Grameen and I am currently looking to expand further. Grameen low interest loans are the best and I hope they can be around for a long time to continue helping genuine hardworking business owners.”
Alastair Davis, SIS chief executive, said Grameen had the potential to make a “huge impact” on reducing poverty.
He added: “Due to the fact that it operates on low margins, this investment will help Grameen in the UK achieve the scale it requires to make more affordable loans to more low income individuals who are looking to set up a business or grow an existing business.
“We’re excited by the opportunity of working with the team as it helps to support and grow the business community within some of Scotland’s most deprived areas.”
The SIS Social Growth Fund is used to provide loans to social enterprises and the third sector. To date, the fund has lent more than £6m to help 12 organisations increase their social impacts.
