A credit union aiming to give loans at reasonable interest rates to the borough’s borrowers has been launched.

M for Money, supported by Harrow Council, is a financial co-operative which means any profit made is handed back to its members, who own the union and can also open safe savings accounts.

The move is aimed to give an alternative to the payday loans that have proliferated around London offering exorbitant rates of interest to vulnerable people struggling during the recession.

It will offer support to those in Harrow and Hillingdon, and follows the launch of similar schemes elsewhere in the capital, such as the successful Haringey, Islington and City Credit Union which opened last year.

Councillor Keith Ferry, portfolio holder for regeneration, said: “It’s great that Harrow residents have this lifeline in times of need. 

“The M for Money Credit Union provides a very important service in hard financial times, providing a safety net to help people stay away from pay day loans.”