Kudejah Ali: Personal Loans Manager SEPTEMBER 2008

ServiceCost to client Money and Debt Advice Free Microcredit Business Loans 12-19% APR (£2,000-£10,000) Personal Loans 28-35%APR (£200-£2000) Our Business

Why do we deliver Personal Loans People deserve a fair and affordable alternative People should have access to a range of services so that they can make informed financial decisions and feel confident about their choices. Provide services which aim to improve the well being and financial capability of individuals

Lender Average APR Provident 183% Morses Ltd 365% CLC 1564% Pay Day lending 1000% Unlicensed 10000%+ The market rates

How does it work ENQUIRY LOAN INTERVIEW LOAN ANALYSIS LOAN MEETING DECISION LOAN DISBURSAL MONITORING END OF LOAN APPLICATION AND IDENTIFICATION APPROVED REJECTED REASON WHY ARREARS & DEFAULT MANAGEMENT

Who are our clients Homemake r Working FT/PT Student/other Unemployed Retired

Impact Loan officers from 2007 Interviewed clients and given them basic financial support Approved 1000 Loans in 3.5 years Made over £700,000 in loans Saved clients over £500,000 in saved interest payments Bad debt rate (181+days) of 5% We have helped many of our clients escape the clutches of predatory lenders charging extortionate rates.

Funding Revenue Current –Self generated interest payments – 45% –Charities supporting the educational aspect of loan making – 30% –Government Funds – 25% Within 3 years –Self generated – 85% –Charities – 15% –Government – 0% Capital Current –Government 50% –Banks 10% –Own recycled funds 40% Within 3 years –Government 0% –Banks and Private investors 50% –Own recycled Funds 50%

Challenges Small is not always beautiful – we need to grow to make an impact and be sustainable Training good staff – low defaults and good loans are down to well trained and motivated staff Clarity on the service – not confusing the client or ourselves about what we are doing, and keeping the work simple Brand identity – making sure our message and marketing makes sense to clients Funding/Investment – securing enough capital to grow our business at affordable rates Maintaining the portfolio – keeping defaults low aw we grow Product Development – meeting the needs of the clients as they change Marrying business and community interests (Hard headed but soft hearted) with partners and staff