A HOUSING association has handed over £20,000 to a money lending scheme -- because many of its tenants may be in financial difficulty.

Twin Valley Homes, the private company which manages the 10,000 'council' homes in Blackburn and Darwen, gave the cash to the East Lancashire Moneyline.

The scheme, based at Lord Square, Blackburn, was launched last week and offers loans from £50 to £10,000 to people who have been turned away by banks and building societies.

It is the third of its type in the country and is designed to prevent people turning to money-lending companies or back street sharks, who charge high interest rates.

The Moneyline offers loans at the same rates as banks, and is available to residents in Blackburn with Darwen initially, but will be extended to the rest of East Lancashire if successful.

Twin Valley homes has properties in some of the most deprived estates in the county and officers want to encourage people in difficulty to use the service.

A survey revealed the Bastwell area of central Blackburn to be one of the 10 poorest in the country, with more than 60 percent of the families with an income of less than £10,000.

And another study found that one third of all people living in Lancashire were in debt and at least two months behind with their repayments.

Chris Gibbins, Director of Property at Twin Valley Homes, said: "We are pleased to support East Lancs Moneyline in the work they are doing to provide local people, who need to borrow money, with an affordable alternative.

"This is part of Twin Valley Homes commitment to regeneration within our communities."

Twin Valley Homes' March newsletter will carry a feature on the Moneyline so all its tenants will know about it.