Social lending

The purpose of social lending is to help prevent financial problems and indebtedness, and to help people manage independently.

About 30 municipalities provide social loans for their residents. Social lending is being developed to help people deal with unexpected financial problems.

The MSAH is responsible for preparing legislation on social lending.

Social loans may be granted at a reasonable rate of interest for a variety or reasons

  • putting one's financial affairs in order
  • breaking debt cycles
  • purchasing household appliances
  • supporting employment or rehabilitation
  • ensuring housing continuity
  • overcoming financial crises.

Municipalities may grant social loans to people who, due to their small income and scant financial means, are unable to get reasonable terms of credit elsewhere, but who are nevertheless able to repay loans.

Municipalities grant social loans, and further information on applying for a loan is available from municipal social services departments.

Further information

Ritva Liukonen, Senior Specialist 
Ministry of Social Affairs and Health, Department for Clients and Services in Healthcare and Social Welfare / APO, Service System Unit / PAL 0295163278