Banks urged not to 'label' people with low credit scores
Summary
A charity called Purple Shoots is helping people with low credit scores get loans to start businesses. The founder, Karen Davies, believes banks miss out on talented people by not giving loans to those with poor credit histories. Purple Shoots has provided nearly 1,000 business loans, creating new jobs in communities.Key Facts
- Karen Davies started Purple Shoots to help people denied loans by regular banks.
- The organization offers loans up to £5,000 to start new businesses.
- Since starting 12 years ago, Purple Shoots has supported about 1,000 businesses.
- Tiffany Bramley received a £3,000 loan from Purple Shoots to restart her cleaning business after her bank denied her a loan.
- Purple Shoots often helps create jobs in poorer areas.
- Over half of borrowers from Purple Shoots face challenges in repaying loans but receive support to succeed.
- The charity claims that only about 20% of its loans result in failure to repay.
- A charity, Finance Innovation Lab, is calling for new laws to make loans more accessible for people with low credit scores.
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