Tens of thousands more Scots could get easier access to cheap loans under plans designed to expand the credit union industry.
Coalition ministers will today unveil proposals to double the size of the sector over this decade.
Around one in 20 people in Scotland is already a member of a credit union.
But ministers want to aid expansion by allowing the organisations to charge a higher level of interest.
The change could allow credit unions to help customers they had previously been forced to turn away, ministers believe.
They also think the move could cut the numbers relying on payday lenders, who can charge very high interest levels.
Conservative Economic Secretary to the Treasury, Sajid Javid said credit unions were an "invaluable service to people on lower incomes, offering sound financial advice and responsible lending".
But the Scottish League of Credit Unions has expressed concerns over the plan.
New legislation will allow a rise in the maximum interest rate that credit unions can charge – up from 2% to 3% per calendar month.
However, Dermot O'Neill, the League's chief executive, said the proposals could damage the reputation of the Credit Union movement "and reinforce a general misconception that credit unions are a 'poor man's bank'".
He said: "For credit unions to be successful, they need to serve a broad range of members with different levels of financial mobility.
"Credit Union lending at 3% per month (which equates to an APR 42.6%) is not conducive with attracting middle-income members; those who do have access to affordable credit."
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