Two of Britain's biggest banks have refused to support a London-based not-for-profit lender that makes small loans to low-income families.

Fair Finance on Tuesday secured £1m in funding from two of France's largest banks after receiving little interest from UK banks in its business, which involves lending at rates far below those normally on offer to poorer borrowers.

Royal Bank of Scotland, which has received tens of billions of pounds in state support, declined to provide a loan to Fair Finance, although it has provided support to similar organisations.

Barclays also declined to support Fair Finance. Barclays and RBS's decisions come despite both of them providing some of the company's first funding.

A spokesman for Barclays said the bank was "committed to supporting" community finance, adding that the bank had provided more than £4m to more than 100 credit unions. Barclays staff have also.....Read more HERE