New unsecured loan finance for Scottish housing associations
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The Scottish Government has made £25 million available through a social investment charity to provide unsecured medium-term loans for housing associations.
Allia, which won the charitable bond programme delivery contract following a public procurement exercise, will provide loans exclusively for RSLs to bring forward projects to build new affordable homes until 31st March 2016
Loans are available for between 5 and 10 years with the rate fixed for the whole of the term. Interest will roll up and be payable only at the end of the loan. The loans will be unsecured, typically with no covenants for gearing or interest cover.
The loan fund also runs in parallel with a new grant programme, using the interest generated by the loans to provide charitable donations for social housing development in Scotland. Borrowers who have been approved by Allia can apply to Scottish Government for a grant in addition to a loan.
To find out more about the scheme contact Allia at scottish.homes@allia.org.uk or call 0845 456 2431.
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