Iceland defrosts its loans scheme in time for Christmas

Struggling shoppers can once again pick up small loans to help with living costs from Iceland after the supermarket announced it is relaunching its lending scheme in time for Christmas.

The Iceland ‘Food Club’ loans allow shoppers to borrow up to £100 interest-free on a preloaded card, which can be spent in the supermarket or at its other brand, The Food Warehouse.

Shoppers repay the loan at £10 a week, although they can make larger instalments if they’d like to.

Regular Iceland shoppers can top up their card from today (16 December) in time for Christmas. New Iceland shoppers must apply for their card through the Fair For You website.

Iceland first launched its loan scheme in August 2022. By September 2023, the Food Club had helped more than 23,000 households.

To date, Iceland has lent over £5m to financially vulnerable shoppers who may otherwise have had to turn to ultra-high interest products or illegal money lenders.

Commenting in The Grocer magazine, Richard Walker said: “The launch of the next phase of Food Club will help families afford a proper Christmas, giving them peace of mind and helping fight the scourge of predatory loan sharks and unregulated money lenders.”