HOUSING association tenants in the Darlington area are to benefit from a savings and loan scheme being offered by a building society.

Darlington Building Society's Helping Hand scheme gives tenants a chance to establish a credit rating and offers a good rate of interest, whatever amount they have in the bank.

Small loans, which are not normally available from big banks, will be available to account holders, guaranteed by the housing associations.

Jan Ford, one of the first housing tenants to open an account, said: "I see this as a wonderful scheme which can benefit all housing association tenants in a practical way. Many tenants, particularly those on income support, would find it difficult to set up a bank account at all.

"Being able to open a Helping Hand account for just £1 gives us the incentive we need. We will benefit from a good rate of interest for both saving and borrowing, which means that families who need to borrow money for a fridge or washing machine will be able to do so without resorting to money lenders who charge huge rates of interest."

An extra £1 will be given to the first 250 account holders opening accounts for £5 or more.

Geraldine Wilcox, spokesperson for the housing associations, said: "Helping Hand is a bold step towards financial inclusion for many housing association tenants, a number of whom only have experience of a cash culture."

Eleven thousand housing association tenants are expected to benefit from the scheme in the Darlington and Tees Valley area.