Clann Credo alerts Mayo community groups to Next Generation loan product

CLANN Credo, Ireland’s largest social finance provider, is alerting community groups in Mayo to a new Next Generation loan product designed to support the increasing number of community groups and organisations now seeking to buy their own land or buildings.

The term loan will be available to new and existing customers with a variable interest rate of 5.2% up to 12 years. Clann Credo will provide significant levels of finance secured against the assets involved.

Drawing on its customer insights, Next Generation was developed by Clann Credo in response to a growing trend of community groups and organisations wanting to own their own facilities such as sports pitches, community centres or creches, as opposed to renting them or securing access to them through third parties.

Clann Credo is seeking to support community groups intending to purchase land or buildings outright through long-term loans. By providing this type of finance to organisations now, the lender is seeking to ensure that the next generation will have guaranteed and secure access to much-needed facilities.

It comes as Clann Credo has also today announced a new Acorn Fund, designed to provide reduced interest loans to groups and community organisations working in underserved communities.

The fund will finance bridging and term loans worth between €5,000 to €15,000 at interest rates of 5%. Successful applicants will also be able to benefit from increased levels of support from Clann Credo’s team. This will include assistance with applications, guidance on financial planning and no arrangement fees.

The Acorn Fund will initially involve a total of €250,000 and will operate as a pilot programme for the first 12 months, launching September 2025 to August 2026. It will then be reviewed and, if successful, will be extended.

Both the Next Generation loan and the Acorn Fund loan are being offered at interest rates that are lower than Clann Credo’s existing rates. The lender’s variable rate is currently 5.95% and its rate on bridging loans is 6.95%. These rates were lowered in March 2025 from 7.45% and 8.5% respectively. The move was facilitated by a reduction in the cost of capital from social lending wholesaler Social Finance Foundation, which Clann Credo passed on in full to customers.

As a community finance provider, Clann Credo works with and provides low-interest loans to community organisations, charities and social enterprises, which enables them to advance projects to address key societal needs. It is committed to offering community organisations a more flexible and supportive approach than traditional loan financing.

Clann Credo assesses projects against social impact in addition to the capacity of the borrower to repay a loan. It also does not seek personal guarantees.

Due to its extensive experience of working with community groups and its knowledge of the sector, Clann Credo is uniquely placed to offer loans to customers that may struggle to access finance elsewhere, especially on similar terms.

The organisation’s bridging loans are essential for community groups and charities, providing cashflow for projects that have grant approval, but need to be completed before the grant is issued. Terms loans are particularly useful for communities seeking to launch new services, purchase assets or expand in response to a growing demand for their services.

Clann Credo has provided over €218m in finance since it was established in 1996, supporting more than 1,600 community organisations during this time. The organisation’s loan book now amounts to €53.3m, an increase of 5.75% on its 2024 opening position of €50.4m. The organisation has over 700 customers and forecasts €38m in new loan offers in 2025.

Mary Lawlor, chief executive of Clann Credo, said: “We are pleased to announce two new reduced interest loan products for new and existing customers. Our Next Generation loan has been designed to assist the increasing number of community organisations and groups that are now wanting to buy and own their own assets. Many organisations are renting or leasing land or buildings. They are happy to have access to such facilities, but they would prefer more security, certainty and independence.

“By buying the assets they need to operate, they are putting themselves in a stronger position and they are ensuring their services are maintained for the next generation. This is particularly important to community organisations and groups as they continue to become more ambitious for their community.”

She added: “We already lend extensively to groups and organisations in disadvantaged areas, but we are seeking to increase this. Our Acorn Fund is designed to assist us in reaching and lending more to those that might not have access to finance and might not have considered borrowing in the first place.

“As always, we will work closely with the community groups involved and provide them with support and advice, if needed, to put in place strong plans and allow them to maximise the potential of the money they borrow while meeting their repayments.”