Catherine Murphy (Kildare North, Social Democrats)
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194. To ask the Minister for Employment Affairs and Social Protection the number and percentage of credit unions that have signed up to the personal micro credit scheme; the number and proportion of these that are offering loans; the number and percentage of credit unions that have placed a limit on the number of loans available under the scheme; the number of loans provided under the scheme in each of the years since its inception; the average and aggregate value of the loans provided in each of the years; the way in which the scheme is promoted; the actions being taken by the implementation group to improve the availability and success of the scheme; and if she will make a statement on the matter. [19318/18]

Regina Doherty (Meath East, Fine Gael)
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The Personal Micro Credit Scheme (PMC) provides for small scale loans, known as It Makes Senseloans, by Credit Unions to borrowers who have difficulty accessing low cost credit. The aim of the scheme is to move people away from the use of high cost moneylenders as a mechanism to provide for their planned financial needs and to provide an alternative, legitimate, and low cost personal loan scheme.The loans under the scheme range from €100 to a maximum of €2,000 and have a maximum interest rate of 12% per annum.

An Implementation Group chaired by my Department and comprising all relevant stakeholders is working towards achieving a national roll-out of the scheme.

Currently, 109 credit unions at over 255 locations are in a position to offer the ‘It Makes Sense Loan’. This represents almost 50%of the credit unions (excluding industrial), which could potentially participate in the scheme.

Of the 109 credit unions which have signed up to participate, 101 (93%) have issued loans under the scheme with 8 (7%) yet to write a loan. 3 credit unions (2.75%) have some restriction in place in relation to the loans available.

The aggregate value of loans drawn down under the scheme in 2016, 2017 and 2018, to dateis not readily available. However during the pilot period from November 2015 to April 2016, 1,202 loans were issued with an aggregate value of €720,000.

Since the inception of the scheme in November 2015, almost 7,500 loans have been drawn down. Currently over 6,000 people are making PMC loan repayments by way of weekly deductions from their Social Welfare payment through the Household Budgeting Facility, with an unknown additional number using direct debit or standing orders.

Information on the scheme and regular updates, including the list of participating credit unions is available at www.itmakessenseloan.ie, a face book page www.facebook.com/itmakessenseloanand on www.citizensinformation.ie

The availability of the scheme has been promoted at local level, in the areas where credit unions are participating in the scheme. The credit union representative groups support local credit unions in marketing the scheme through the provision of posters, leaflets and raising awareness in local media. A number of other promotional methods have been used such as posters/flyers delivered to all Intreo Offices in the areas served by participating credit unions. Additionally, the scheme is promoted at local level by the Money Advice and Budgeting Service and St Vincent de Paul.

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. In efforts to increase credit union participation in the scheme, feature articles have been placed in credit union publications such as CU Focus. Promotion also takes place at appropriate events such as the Irish League of Credit Unions (ILCU) Annual General Meeting, the Credit Union Managers Association conference and events such as the National Ploughing Championships.

Engagement is continuing with the credit union representative bodies and individual credit unions to encourage wider participation; in this context. I recently met with the Irish League of Credit Unions to discuss same. I hope this clarifies the matter for the Deputy.