Social finance organisation Clann Credo said today it would cut its interest rates for new and existing borrowers.
The lender's variable rates are being reduced from 7.45% to 5.95% while the rate on bridging loans is being reduced from 8.5% to 6.95%.
Clann Credo's loan book now amounts to €53.3m, an increase of 5.75% on its 2024 opening position of €50.4m. The organisation has over 700 customers and forecasts €38m in new loan offers in 2025.
Clann Credo works with and lends finance to community focused groups that are delivering a positive social impact in their community. It offers community organisations lower interest rates and a more flexible approach than traditional loan financing.
It has provided over €218m in finance since it was established in 1996 and has supported over 1,600 community organisations during this time.
Clann Credo offers borrowers advice and social finance on terms that may not be available to them elsewhere.
The lender does not seek personal guarantees and assesses projects against social impact in addition to the capacity of the borrower to repay a loan. Its advice also extends to providing information on the financial sustainability of projects.
It said today's cuts have been facilitated by a reduction in the cost of capital from the lending wholesaler Social Finance Foundation, which Clann Credo is passing on in full to customers.
Mary Lawlor, chief executive of Clann Credo, said the lower interest rates will be of benefit to both its existing and new borrowers.
"At Clann Credo, we are the largest social finance provider in the country, and the loans we issue assist community groups, charities, and social enterprises to deliver sustainable projects and services for the benefit of current and future generations," she said.
"The feedback from our customers is that our ability to form meaningful relationships with community organisations and our understanding of the rhythm of community development sets us apart," she added.
Ms Lawlor said the group plan to lend to more community projects this year and lower wholesale capital costs will assist it in achieving this.
"Access to low-cost lending capital is vital for us to continue our mission of making social finance accessible to all communities. As such, expanding our investor base is a strategic priority," she said.
"We are particularly interested in working with large companies who might consider social lending as part of their ESG activities. We are asking interested parties to consider lending us capital at low interest rates, which we would then lend to community groups to deliver community projects and services," she added.
