Affordable financial services products: No Interest Loan Scheme (NILS) and innovative affordable finance solutions

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Contract (Services)
9 year
01 Dec 2021
To 14 Feb 2031 (est.)
14 Feb 2022 13:00




Geochart for 2 buyers and 0 suppliers

2 buyers


We are seeking partners to co-design, pilot and then scale up innovative affordable finance products targeted at people in vulnerable circumstances. The first pilot is a no interest loans scheme to be delivered in six locations across England, NI, Scotland and Wales. The Treasury backed NILS pilot is an opportunity to improve credit provision for customers who don't currently have access to a fair credit option who are excluded from credit because of they cannot afford the interest and the principal, but could afford principal repayments; or who do not meet lending criteria for other reasons but where there is a societal benefit to lending to them responsibly. Equivalent services have been in place internationally for a long time but no scaled provision exists in the UK. We hope that the pilot results in a positive set of outcomes for customers, and also for the partners who help to deliver the programme. One of our objectives for the pilot is that it strengthens overall affordable credit provision in the UK. Bid opportunities are divided into geographic lots with options to bid for more than one lot or all lots. We are also seeking partners to work with us on wider innovative product development initiatives leading to pilot implementation and scaled up delivery. This is covered in a separate lot, initially focussed on England, but with the option to be extended beyond. This may encompass the development, piloting and scaling of: Solutions tackling problem debt Solutions tackling appliance poverty Insurance products specifically designed for low income households Savings products and credit builder products Alternative and fair versions of buy now, pay later (BNPL) lending Revolving credit products or ethical overdraft products Car financing and other products to enable economic livelihood to improve Hire purchase or conditional sale products Fair and accessible credit cards Other lending products which may also be coupled with complementary products eg savings, credit builder products, insurance offerings and more. Therefore, we are seeking partner organisations who share the vision of a credit market which can provide a fair and affordable option for all customers. Stringent tests are included in our procurement about bidders track record with the customers we are targeting and their commitment to delivering these contracts within the interests of the customer coming first. The contracts are set up to be capable of being extended for a further 5 years after the initial development and piloting period and these extensions are dependent on our funding partners contributing beyond the initial term and would be entered into by mutual consent. Please see details contained within the procurement documents.

Lot Division

1 Wales
2 Scotland
3 Northern Ireland
4 England - London (A)
5 England (Any location) (B)
6 England (Any location) (C)
7 All three English Locations (A-C) (should include London)
8 All geographic lots 1-6 covering all four locations and smaller loans delivered nationally
9 Future innovative affordable finance solutions

Renewal Options

Initial development and pilot period expected to be maximum of four years including evaluation. Contracts can then be extended for up to five years in one year increments by mutual consent where further funds become available to enable the pilots to be scaled.

CPV Codes

  • 66000000 - Financial and insurance services


  • Restrictions apply to the lot award allocation.
  • Bids should cover one or more lots.
  • Bids should cover the whole contract.
  • This is a recurring contract.
  • Options are available.
  • Renewals are not available.
  • Financial restrictions apply.
  • Performance considerations apply.
  • Professional qualifications are sought.
  • Award on basis of price and quality.