Iceland Food Club: £75 Interest-Free Loan for Groceries

How the Iceland Food Club Card Works and Who Can Apply

The zero-interest 'micro-loan' scheme, the result of a link-up between the supermarket chain Iceland and a charity-owned lender, Fair for You, aims to help UK households struggling with the cost-of-living crisis.

Typically, people with limited funds are unable to secure loans or credit from conventional lenders, which puts these households at risk of being unable to meet their financial obligations.

To help out these people, Iceland will provide interest-free “micro-loans” of between £25 and £75 to buy everyday items from Iceland stores and its sister store, Food Warehouse.

Qualifying customers will be supplied with a preloaded Mastercard of up to £75, which can be used in a similar way as a gift card to make payments for groceries, with customers' repayments set at £10 a week, with the option to make additional payments at no extra cost. Loan holders can adjust their repayment day or amount using the Fair For You app.

The scheme was initially tested with 5,000 participants in 2022, and by September 2023, Iceland said the Food Club had helped over 23,000 families, and to date, it has lent over £5M to qualifying customers.

Who Can Apply?

Anyone can apply for the scheme, and if successful, credit can be used both in-store and online using the preloaded Mastercard. Successful applicants receive up to a £75 credit limit and, on joining the programme, which is called Iceland Food Club, can choose an initial top-up of between £25 and £75 onto their cards.

Your preloaded Fair for You Prepaid Mastercard will arrive within 5–7 business days.

School Holiday Top-Up Dates

Those customers who already have the loan set up can apply up to 6 times a year for a top-up if repayments are up to date, and these top-up dates are based around the school holiday timetable:

• February Half-Term: 10/02/2025-26/02/2025

• Easter Break: 07/04/2025 - 30/04/2025

• Spring Half-Term: 19/05/2025 - 04/06/2025

• Summer Break: 14/07/2025 - 03/09/2025

• Autumn Half-Term: 20/10/2025 - 05/11/2025

• Winter Break: 15/12/2025 - 07/01/2026

Why This Scheme Matters

Richard Walker, Executive Chairman of Iceland Foods, said:

“The summer holidays should be a time for families to relax and make memories, not worry about how they’re going to afford their next food shop. But the reality for millions is very different… Our Food Club will be available this summer, offering real, practical support that helps people stock up their fridges and freezers without falling into debt traps.”

Simon Dukes, CEO of Fair for You, added:

“Our Food Club with Iceland offers a safe, flexible alternative to high-cost credit… We’re experts at helping people to borrow responsibly and are even able to help people with poor credit if we can see that they can afford to make £10 weekly repayments.”

Rising Summer Holiday Food Costs

New research by Iceland and OnePoll (July 2025) found that:

• 85% of parents report increased food costs during school holidays

• 73% say they spend more simply because kids are eating at home

• 68% say they stock up on snacks and drinks to keep kids going

• An estimated £550 million extra is being spent on food every week during the summer holidays
  

Because of these costs:

• 26% of parents have used Buy Now, Pay Later services for groceries

• 10% have relied on loans

• 21% have sold personal items to cover bills

What If You Can’t Repay?

It's worth noting, of course, that people in financial difficulty should be aware that they must repay a minimum of £10 a week. Although it's interest-free, it is a regulated credit agreement, which may affect a credit score if payments are missed.

How to Apply for the Iceland Food Club Loan

You can apply for the card via the Fair for You website, and if your application is successful, you will receive an email to confirm your acceptance within 24 hours, sometimes as little as one hour.

Not everyone will be accepted for the Fair for You loan scheme, but if you have a stable, regular income and a bank account from which you can make repayments, you have a better chance. The company will carry out a credit search and affordability checks as part of its loan application process, which will appear as a hard search on your credit file and may impact your credit score or affect your ability to obtain credit elsewhere.

You can use their loan eligibility checker to see if you are likely to be accepted, and this will perform only a soft search on your credit file.

A Lifeline for Many, But Not for Everyone

You may be denied the loan if the lender does not think the loan will be affordable for you and your financial circumstances, which, sadly, may mean that those people with the greatest need may actually be the ones unable to access the loan.

Customer loan repayments are recycled back into the scheme to help more families, as part of the scheme's not-for-profit emphasis, which is good news as it means more people can take up the offer if needed.

The scheme will help many families during this tough time. On the other side of the coin, it’s also a smart move for Iceland, helping to build customer loyalty while offering genuine support, a rare win-win.

If you’re struggling to make ends meet this summer, the Iceland Food Club could offer a short-term boost. Check your eligibility and apply directly at Fair for You.

The information is correct as of July 20th 2025, but is subject to change.