Róisín Shortall (Dublin North West, Social Democrats)
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823. To ask the Minister for Social Protection the current scope of the personal micro-credit initiative. [26342/16]

Leo Varadkar (Dublin West, Fine Gael)
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A Personal Micro Credit Scheme providing for small scale loans by Credit Unions to borrowers who have difficulty accessing low cost credit has been piloted in 30 credit unions. The loans under the scheme range from €100 to a maximum of €2,000, and have a maximum interest rate of 12% per annum. Over 1,200 loans have been drawn down under the Scheme to date with an overall value of over €720,000. The average individual loan value drawn down is €500. The focus of the pilot scheme was social welfare recipients who availed of the loans from their Credit Union and were facilitated, with their consent, in the repayment of such loans through the Household Budgeting facility, operated by An Post. The deductions from their weekly social welfare payments are then transmitted on to the relevant Credit Union.

The Programme for a Partnership Government provides for the rollout and extension of the Personal Microcredit Scheme. Following an evaluation of the pilot, the Implementation Group, which is chaired by my Department and comprises all relevant stakeholders, is working towards this aim. Incremental progress is being made towards extending the geographical coverage of the loan scheme through efforts to recruit Credit Unions to participate in the scheme. Engagement is continuing with the Credit Union representative bodies and individual credit unions to encourage wider participation.

While the pilot scheme was targeted towards social welfare customers with access to the Household Budgeting facility, the scheme has recently been extended to social welfare recipients who receive their payment electronically into accounts in financial institutions, provided the loan repayments are made by direct debit or standing order to the credit union.

Efforts are also underway to examine ways in which the Personal Micro Credit scheme can be made available to non-social welfare low-income individuals and families. The Implementation Group is working with the relevant stakeholders to find solutions, within prudential lending guidelines.

I hope this clarifies the matter for the Deputy.