Iceland Foods has extended its interest free ‘microloans’ scheme for Christmas and will run throughout 2025 as it continues to support customers.

The next phase of the frozen food specialist‘s Food Club’ loans scheme, in collaboration with online lending company Fair For You, allows shoppers to borrow up to £100 interest-free on a preloaded card which can be spent at Iceland or Food Warehouse stores, The Grocer reported.

Standard repayments are set at £10 per week, however users are able to pay back more if they would like to.

Existing customers can top up their card this year from 16 December in time for Christmas, while new shoppers can apply through Fair For You’s website.

Iceland first rolled out the loans scheme at the start of 2022 in a bid to offer an “ethical and affordable alternative” to the “ultra-high-interest lenders, or even illegal loan sharks”.

This was then launched nationwide in August of the same year and by September 2023, Iceland said the Food Club had helped over 23,000 families since its debut.

Iceland executive chairman Richard Walker told the publication: “For many families, Christmas is shaping up to be one of the hardest in recent years.

“While other businesses have been very vocal in feeling sorry for themselves of late, Iceland decided that we need to roll up our sleeves and get on with the job of supporting our customers.

“The launch of the next phase of Food Club will help families afford a proper Christmas, giving them peace of mind and helping fight the scourge of predatory loan sharks and unregulated money lenders.”

Walker called on businesses to stop “wallowing” and “complaining” about Labour’s recent Budget, stating that the Government is unlikely to reverse its decisions following an outcry from fellow retail bosses.

“The Government isn’t going to change its mind. It was a tough Budget, but we adapt,” he told The Telegraph.

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