A SCHEME that provides ‘loans’ for people who are in severe financial difficulties has had a bid for a grant from Ludlow Town Council put on hold.

The Tenbury nils (no interest loans) scheme had asked the Council for a grant of £2,000.

This follows its decision to open a ‘branch’ in Ludlow earlier in the year that has so far processed 10 applications.

It had asked for the money to help pay for the rent of premises at Ludlow Foyer that costs £360 a year and also for new computer links between Ludlow and its offices in Tenbury.

The scheme has already received some funding from Tenbury Town Council, Malvern Hills District Council and the South Shropshire Housing Group.

It does not operate like a conventional loans business but provides help in the form of credits that can be used to buy essential household equipment form local suppliers. The loans can also be used for items like school uniforms.

No interest or administration fee is charged and the repayments are normally made over 12 or 24 months.

But town councillors Glen Ginger and Rose Jones said that they had concerns about providing money from Ludlow for a scheme based in Worcestershire. Mr Ginger was also concerned about how ‘nils’ recovered the money that it is owed.

However, town councillor Colin Sheward said that it was an initiative that had come from Australia and was attracting a lot of interest and being seen as something of a pioneer.

He reminded the council that it also means that money from Tenbury is being channelled to Ludlow and said that as the ultimate sanction money could be recovered through the Department for Work and Pensions.

But Ludlow Town Council decided it needed further information.