Social lending

Social lending aims to prevent financial marginalization and over-indebtedness, as well as to promote a person's and his or her family's independent coping.

Who is the credit meant for?

Low-income and resource-poor Vantaa residents who do not have:

  • Access to reasonably-priced credit due to, for instance, lacking collateral or credit default.
  • Sufficient income or assets to cover the expenses in cash or by saving within a reasonable time.
  • Grounds for being eligible for grants or other financing.
  • Possibility to cope with his or her present debt coverage without more severe indebtedness.
  • Social credit is granted to entrepreneurs and students only exceptionally.

For what purposes can the credit be acquired?

  • household acquisitions
  • small house renovations
  • rent deposits and unpaid rent
  • tools related to winning employment
  • repayment of other loans, or
  • financing other justified expenses.

If you receive social credit, you must always use the credit on expenses agreed and specified in the credit agreement. If you are granted credit for paying debts, the credit will be directly paid on the accounts informed by the creditors.

Amount of credit and loan period

The maximum amount of social credit is €200.00 - €10,000.00. The loan period is no longer than five years.

What are the preconditions for getting the credit?

The applicant shall have sufficient facility (the difference between the applicant's net income and expenses), so that he or she can take care of the monthly amortization payments and interests.

It will be easier for you to get social credit if you can justify how the purpose of the credit and the impacts of the credit will affect your independent coping and improved quality of life.

You may be demanded to save some money before you will be granted social credit or you may be demanded to prove that you can manage it. In addition, a voluntary credit default entry in the credit information register will be expected of you.

Grounds for rejecting social credit

  • the applicant does not have sufficient facility for managing the credit applied for.
  • the applicant is too indebted; €10,000.00 is not enough for debt restructuring.
  • the applicant cannot prove his or her ability to manage the credit applied for.
  • the applicant is moving away from Vantaa.
  • the applicant is eligible for reasonably-priced credit available in the ordinary credit market.

Terms of repayment

  • The repayment scheme will be devised on the basis of the applicant's repayment ability.
  • The monthly installment will be at least €20.00.
  • The credit-recipient can have two installment-free months per year to finance other necessary expenses.

The applicant will receive financial guidance and counseling when applying for credit, as well as during the repayment scheme, if required.

Social lending is part of legislative social welfare