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Simon Meechan

Iceland Food Club interest-free loans, how they work and how to get them

Supermarket Iceland offers interest-free loans of money to spend in its stores for families struggling over school holiday periods.

The Iceland Food Club is run in partnership with ethical loans company Fair For You. Those who sign up can get pre-loaded cards with between £25 to £75 of interest-free credit, which can be spent in Iceland and Food Warehouse stores and is paid back at a rate of £10 per week.

"This loan is for those who can’t get credit anywhere else, who just need that extra bit of money to smooth over the holiday period,” Simon Dukes, CEO of Fair For You, told Grocery Gazette.

Read more: Iceland say 4,000 families apply for store loan to buy food on first day

The scheme allows customers to top up six times a year - each time is during a school holiday period.

It may be a bit too late to apply for the Christmas holidays this year, as Fair For You says customers need to have their loans signed off by December 9 to guarantee delivery of their pre-loaded cards, but it will reopen again in the February half-term.

Upon launching the scheme in August, Iceland said: "All the evidence we have seen from our own trials – and from researching the widespread use of microcredit around the world – is that it is a really helpful way of managing low and irregular incomes, and improving the quality of life and the self-respect of those taking part.

"We are also deliberately making the loans available only in school holiday windows to ensure that they are used for smoothing out incomes rather than inducing permanent dependence. There are currently 8.4 million people in food poverty in the UK, and I really hope that our Food Club will help a significant number of people to break out of this depressing cycle. Anyone can apply for a card."

How to apply for an Iceland Food Club interest-free loan

You can apply through Fair For You for a Food Club Card topped up with between £25 and £75. Anyone can apply.

It may be too late to apply for one to use over the Christmas Holidays, as Fair For You says loans needed to be approved by December 9 to make sure cards can be delivered to homes in time for the Christmas break. More than 4,000 applied when the scheme opened for December 2022, Iceland says.

But the scheme will reopen ahead of the next school holidays due in February 2023.

How much can you borrow interest-free to spend at Iceland?

You can top up between £25 and £75, up to six times a year (during school holidays) up to a total limit of £100.

Fair For You says: "Top ups on a Food Club card are made available throughout the year in line with school holidays.

"If you have a Food Club card we will contact you to let you know when the next top up date is available."

How Iceland Food Club loans are paid back

Customers pay back their loans - which are interest-free as Iceland is paying the interest itself - at a rate of £10 per week. Customers can choose which day they pay back, and can pay back early if they wish.

Where can I spend Iceland Food Club card money?

The preloaded cards can be used at Iceland and Food Warehouse stores

Can I get an Iceland Food Club card if I rely on benefits?

Yes, Fair For You says as long as you have a regular income - which can include benefit payments - you have a chance of being accepted.

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