Social loans
- Service
- Helsinki
- Public service
The purpose of social lending is to provide financial support to individuals with low income who permanently reside in Helsinki and face challenges in obtaining loans due to factors such as lack of collateral or a poor credit rating.
It's important to note that receiving a social loan will not impact your eligibility for social assistance. The primary goal of social lending is to prevent ...
Do the following
sosiaalinen.luototus@hel.fi
To whom and on what terms
Social loans are intended for permanent residents of Helsinki who have a low income or limited financial means and who are not eligible for other loans with reasonable terms due to their lack of security or bad credit history, for example.
The precondition for granting a social loan (max. 15,000 euros) is that the applicant is able to pay the loan back. All debt and liabilities are taken into consideration in the decision-making process.
Social loans are granted for person who have also other income than social assistance. Credit cannot be granted to anyone who has realizable property, a valid debt restructuring payment schedule or a permanent need for social assistance that is not due to recovery proceedings. Social lending is based on legislation.
Background information
Social lending is part of social welfare services, and its purpose is to prevent financial exclusion and over-indebtedness and promote the independent coping of individuals and families.
Each wellbeing services county is free to decide the scale of its social lending programme. For a justified reason, a loan may be granted to a person who, due to their low income level or lack of funds, is unable to obtain credit on reasonable terms and who will be able to manage the repayment of their loan. When considering the loan, the applicant’s income and expenses, funds, debts and earning opportunities are taken into account.
Social lending is the responsibility of the wellbeing services county.