Boom Community Bank
Boom Community Bank provides community-based financial services. It offers loans, savings accounts and everyday banking facilities and, in particular, sets out to support those on a low income or who cannot access mainstream financial services.
Boom Community Bank is like a regular high street bank in that it lends to borrowers and looks after money for savers, but there are differences. Boom does not operate to make a profit, and its customers are its shareholders. This model is also known as a Credit Union.
Boom deals primarily with loans between £300-£15,000 and savings accounts of £85,000. Savings in Boom are protected under the Financial Services Compensation Scheme (FSCS). Savings in Boom support ethical lending practices in local communities.
People who take out a loan pay interest but gain five significant advantages:
- Repayments are more reasonable because a ‘not for profit structure means focus is on affordability and not excessive profits.
- There are no arrangements or service fees.
- Borrowers save as they repay their loans. When the loan is paid off, the accumulated savings become available to spend or to keep adding to.
- There are no penalties for repaying all or some of the loans early.
- Boom Community Bank can also put you in touch with agencies that can advise you on budgeting and debt management.
