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<p>The Government is supportive of credit unions and has taken a number of steps to
assist them, most recently including:</p><ul><li>The Department for Work and Pensions
investment of up to £38 million in an expansion project for credit unions. The project
aims to help credit unions expand and grow, enabling them to provide financial services
to more people.</li><li>From 1 April this year the Government increased the cap on
the maximum interest rate a credit union can charge for loans from 2% to 3% per month.
This will allow credit unions to make more loans to their members without making a
loss. Even if they choose to charge the higher rate of interest the cost of borrowing
from a credit union will still be significantly cheaper than many high cost lenders.</li></ul><p>The
Government intends that these measures will help the credit union sector go from strength
to strength, so it can be a viable option for financial services provision for an
even wider range of consumers.</p>
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