Iceland to offer interest-free loans: what you need to know
Iceland has launched an interest-free loan scheme, Iceland Food Club, to help families pay for groceries over the school holidays.
The supermarket chain has partnered with a charity-owned lender Fair for You to launch the scheme, which allows customers to apply for a pre-loaded card of between £25 and £75.
You might be tempted to apply for the scheme in light of skyrocketing prices in recent months, but there are risks associated with taking out credit. It's important to understand how the scheme works and if the repayments are manageable.
Here, we look at who is eligible for the scheme, how repayments work, and other ways of accessing groceries.
Who is eligible for the Iceland loan scheme?
The scheme is designed for families on a low income.
You are eligible to apply if you receive benefits, provided you have a regular income and a bank account you can make repayments from.
To see if you're likely to be accepted, you can use Fair for You's eligibility checker. This won't leave a mark on your credit file.
If you do decide to apply for the scheme, note that a credit search will take place. Fair for You says it will look at your recent history of repayments rather than your credit history from many years ago.
How much money can I borrow?
If your application is successful, you'll initially receive a preloaded card of between £25 and £75 within five to seven days of applying.
Further credit can be taken out (up to six times a year) but there's a total limit of £100 outstanding at any one time.
You can spend the credit both in-store and online.
- Find out more: best cheap supermarket food and drink
How do repayments work?
Repayments are set at £10 a week.
If you don't think you'll be able to make a repayment, you can choose to freeze it or change your repayment schedule.
You can also overpay on your repayments if you want to clear your debt faster.
- Read more: how to pay off your debts
Where to find help getting groceries and toiletries
Here are some other schemes helping people during the cost of living crisis:
Food banks
Trussell Trust is the UK's largest food bank organisation, with more than 1,200 food banks across the country. You can find your local food bank on its website.
You'll need to be referred to a food bank, either through Jobcentre Plus, a social worker, Citizens Advice, a medical professional or your local authority.
If you aren't in touch with any of these organisations, you can still contact the food bank directly to ask for help.
You'll normally receive vouchers or a letter to exchange for food. You might get a few days' worth of meals, toiletries or cleaning products and credit for gas or electric prepayments.
There are also charities, such as Freedom4Girls, that provide donated menstrual products to those in financial hardship.
If you're based in Leeds or Sheffield, you can find out more about how to request products on the Freedom4Girls website.
Local welfare assistance schemes
Your council may have a local welfare assistance scheme you could apply for. These are designed for people on low incomes.
Each local authority runs its own scheme and has different criteria for eligibility.
Some offer small cash loans, food vouchers and free used furniture.
Free meals, value ranges and price locks
Many supermarkets and retailers have put special measures in place to help customers during the cost of living crisis.
Boots, Currys, Iceland and Superdrug have also all introduced price locks on certain products, while some supermarkets have expanded their value ranges.
Certain retailers are also offering free or cheap meals for kids during the holidays.
Take a look at our round-up of restaurants offering deals for families over the summer as well as free activities to keep kids entertained.
