Impact Hub Yorkshire launches first zero-rate product to the UK social investment market

A new zero-rate funding product has entered the UK social investment market. The product, which is the first of its kind in the UK, was developed by Kamran Rashid, CEO of Impact Hub Yorkshire, following consultation with organisations and social enterprises most affected by financial exclusion. 

 

The Local Access Bradford District (LABD) programme, which is chaired by Kamran Rashid, will use the new interest-free loan to support social impact makers within the district to access investment to help them scale up and grow. Its purpose is to create investment models that better reflect the realities and needs of communities.  

 

The product is not only the UK’s first zero-rate social investment tool, but also fully Shariah-compliant and open to all. Designed with ethical finance principles at its core, it offers a more inclusive approach to investment that removes interest-based barriers and supports values-led enterprises, regardless of sector, background, or faith.  

 

Commenting on the new loan product, Kamran Rashid, CEO of Impact Hub Yorkshire, said: “Through this new type of investment loan we are prepared to lend organisations up to £250,000 to help them unlock potential to deliver social impact. This may take the form of taking on an asset, renovating an asset, or bringing in a team to help take on new work. Its purpose is to remove the financial barriers to enable businesses to generate an income through doing good. 

 

“The product functions as a zero-interest, unsecured loan tailored to the social economy and is compliant with Islamic finance principles but it is open to all.” 

 

The product is currently open to eligible organisations operating in the social economy, including CICs, charities and mission-led businesses. Social Investment of between £25,000 and £250,000 are available, with flexible repayment terms supported by Key Fund and LABD. The model has been developed to comply with Islamic finance principles — ensuring no interest is charged — but it is designed to serve all communities, regardless of faith or background. 

 

The first application of the product is supporting Brilliant Healthy Smiles (BHS), a new social enterprise dental care initiative in Bradford led by Dr. Fraz Ali. The practice aims to provide accessible, affordable treatment by mirroring NHS pricing structures while maintaining long-term sustainability. 

 

Dr. Fraz Ali, founder of new Brilliant Healthy Smiles clinic, said: “Navigating social investment initially felt like a minefield, but working with LABD partners like Impact Hub Yorkshire made the process streamlined, transparent, and supportive, even with dentistry being a niche market.” 

 

“This new lending product will help Brilliant Healthy Smiles give the people in our city access to the care they deserve.” 

 

Andy Croft, investment manager at Key Fund, concluded: “There is every confidence across the stakeholders involved within this journey that Brilliant Healthy Smiles will be successful. We’re committed in helping Dr Fraz address the identified big gap in the market, particularly to help BAME communities who otherwise wouldn’t be able to access a dentist.”