A SCHEME aimed at offering loans to homeowners struggling to pay hefty improvement bills on their former council houses has been slammed for its high interest charges.
The package, run by Glasgow City Council, Communities Scotland and the city's Credit Union, will offer loans at 11.6% interest.
Many high street banks offer loans at 7% or less.
As reported in the Evening Times, hundreds of owners face bills of up to £6000 after Glasgow Housing Association speeded up a city-wide improvement programme.
GHA demanded that the owner-occupiers pay up within a year, leaving some people facing court action over unpaid bills.
Communities Scotland threw them a lifeline by announcing the Financial Gateway Scheme, which allows those affected to apply for loans from the Credit Union.
Lawyer and housing campaigner Mike Dailly, from Govan Law Centre, who represented many of those facing court action, welcomed the scheme but insisted the cash should be offered at a lower rate.
He said: "After all, student loans are routinely offered at just 2.4%."
A spokesman for Communities Scotland said the scheme would assist those in need.
He added: "The facilities have been designed to provide help for people who have no option other than a court appearance or loan sharks.
"If applicants are able to access high street lending at lower rates they will be encouraged to do so."
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