Scottish Government launches £10 million fund to offer interest-free loans to tenants who are struggling with rent arrears

Tenant Hardship Loan Fund designed to help people who have had their finances or employment impacted by COVID-19 and who don't have other means of housing support

The Scottish Government has launched a £10 million fund to offer interest-free loans to tenants who are struggling with rent arrears.

The new Tenant Hardship Loan Fund is designed to help people who have had their finances or employment impacted by the coronavirus (COVID-19) pandemic and do not have other means of housing support.

Loans will be available for social and private tenants up to a maximum of nine months’ rent costs covering rent arrears and future rent, where arrears have arisen since 1 January 2020. The loan can include up to a maximum of three months of future rent payments as part of the nine-month total.

Designed for those who can’t claim support from other means, such as welfare benefits, the new loans will be subject to an affordability assessment as part of the Scottish Government’s commitment to responsible lending and will look at the applicant’s incomings and outgoings to check whether they have enough surplus income, after other costs, to make the loan payments. Loan repayments will be deferred for six months as standard and scheduled over a five-year period.

For more information, see Increased support for tenants from gov.scot