Iceland launches interest-free loans: who’s eligible for new Food Club card and how to apply

As the cost-of-living crisis tightens its grip around the UK, supermarket chain Iceland is introducing an interest free loan scheme for its customers to help keep food in their homes.

In a collaboration with non-profit lending organisation Fair for You, the budget food store will allow their customers to take out up to £100 in interest free micro loans to help cover the cost of living crisis.

According to research firm Kantar, UK citizens are set to spend £533 more on groceries following the inflation on food rising to record high 11.6% this month. The highest price hikes can be seen on butter, milk and poultry.

Iceland managing director wrote on Twitter on Tuesday, 16 August: “Today Iceland plays its part in easing the#CostofLiving crisis through launching the Iceland Food Club with@FairforYouCIC. This is about giving people a choice, and helping families avoid going hungry - compassionately and respectfully.”

Iceland announced details on the scheme on Tuesday, including who is eligible for the loan, how to get the £100 micro loan and how it works.

What is the new Iceland and Fair for You interest free £100 micro loan?

Iceland has teamed up with Fair for You to initially allow customers to apply for a pre-loaded Food Club Card of between £25 and £75, with the ability to apply for extra credit on six occasions that will be announced by Iceland.

Customers will be allowed to have a maximum of £100 outstanding credit at any time, with the goal of allowing customers to get an affordable, interest free loan to help tackle the increasing cost of living.

Who is eligible for the Iceland £100 interest free micro loan?

The scheme is available to new customers, and is subject to availability.

The loan requires the customer to have a stable and regular income, and there is an eligibility checker available that will not leave a mark on your credit score.

Those who are granted the loan will receive a pre-loaded Food Club Card that can be used in Iceland’s stores around the country.

How do I apply for the Iceland £100 interest free loan?

The Iceland loan will be available during six windows a year, coinciding with the school holidays.

Customers can take out one loan at the time, with a maximum of £100 outstanding credit.

Customers can apply through the Fair for You website.

How do I repay the Iceland loan?

Repayments will be made on a weekly basis with £10 per week. If circumstances change, Fair for You will work with customers to arrange a repayment plan that works for them.

The scheme is available nationwide now.