Iceland Foods’ interest free ‘microloans’ scheme is returning for Christmas and will run throughout 2025 in a bid to support shoppers.

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

Standard repayments total £10 per week, however shoppers are able to pay back more each week 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.

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The supermarket 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”, which families might otherwise resort to.

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.

At this point, the scheme had lent over £5m since its national launch, enabling financially vulnerable customers to fill gaps in income with interest-free microloans of £25-£100.

Iceland executive chairman Richard Walker told The Grocer: “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.”