Canadian company offers low interest loans to young people with low income – The Globe and Mail
B.C.’s economy has been growing steadily since the 2008 global financial crisis, but many of its young people are struggling to find steady work and pay bills.
The province is trying to help some of them find stable work by offering low-interest loans to those who qualify, but the move comes with a catch: the government won’t guarantee repayment, and the interest rate is set by the bank that provides the loan.
“We’re not saying we can’t make a loan to a young person,” said Christine Bagnall, the minister of human services and Social Development.
“We’re saying we’re not going to guarantee a repayment.
We’re saying that there’s no guarantee at all that the borrower will actually pay it back.
So the key to this is, is there some way to guarantee that?
If you can, that’s great.
If not, you’ve got a pretty good chance of not getting repaid.”
Bagnal says she believes young people have a lot to be grateful for.
“If we were to give the maximum we could to a single-parent family in need, that would be a real blessing for many families.”
But she acknowledges that the province won’t be able to guarantee repayment for the people who apply.
Bagnals plan to announce more details at a future date.
She hopes the move will encourage more young people to apply for the loans, as well as to attract more financial support from the provincial government.
In the meantime, the B.N.W.L. says it is providing loans for low-income seniors who are eligible for it.
The program was launched in 2011, but it has only been operating in the province for a few months.