UK grocer rolls out loan program to ease inflation pains

Posted at 6:10 AM, Aug 17, 2022
and last updated 2022-08-17 06:16:44-04

DEESIDE, Wales — As inflation hits food prices worldwide, one retailer is hoping a "Buy Now, Pay Later" program will help ease the purse strings for some families.

United Kingdom frozen foods and supermarket chain Iceland announced this week the launch of a "micro-loan" program in conjunction with a nonprofit called Fair for You.

Customers who apply will initially get a pre-loaded "Food Club Card" with between £25 and £75 which can be applied to one shopping trip.

Payments can be made weekly, every other week, or monthly. The minimum payment is £10 per week. Further credit of up to £100 can be accessed up to six times per year.

Iceland will not charge interest for accessing loan funds. Managing Director Richard Walker said, "this is about giving people a choice and helping families avoid going hungry — compassionately and respectfully."

The "micro-loan" card is offered to all customers, even those currently on government-backed benefits programs. However, the loan is still subject to approval.