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You are here: Home / Manage Money / Iceland’s interest‑free food loans are back

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Iceland’s interest‑free food loans are back

by Naomi Willis · updated 30 July 2025

Iceland’s interest‑free Food Club loans are back. Here’s how to use them (without getting burned) if the food shop is breaking your budget.

iceland home delivery
Image credit: Iceland

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The summer holidays are brilliant for family time, but a total disaster for the food budget.

Kids at home = cupboards emptied at record speed.

If you’re already side‑eyeing your grocery bill, Iceland might just be your new best mate.

They’ve brought back their Food Club, a small, interest‑free loan you can use to buy your food shop and pay it back in weekly chunks.

It’s not magic and it’s still borrowing, but if you’re genuinely stuck, it’s a far safer option than slapping it on a payday loan, credit card or using your overdraft.

What’s the deal?

The Food Club is exactly what it sounds like: a way to borrow a small amount for your food shop without being stung by sky‑high interest.

You can apply for as little as £25 (or up to £75 if you’re new and £100 if you’ve used it before). If approved, the money’s loaded straight onto a pre‑paid Iceland card you use like cash in‑store or online.

Repayments are set at around £10 a week.

That’s it. No hidden fees, no “surprise” interest.

But isn’t borrowing for food a bad idea?

Honestly? Yes – if you can avoid borrowing for food, avoid it. You’ll be paying back meals long after you’ve eaten them. But we get it.

When the fridge is empty and you’ve got hungry kids, it’s tempting to chuck the shop on a credit card, Buy Now Pay Later or even dip into an overdraft.

The problem is that those options can bite back hard, and missed payments mean fees and extra interest you can’t afford.

The Food Club’s different:

  • It’s run by Fair For You, a not‑for‑profit lender
  • You only ever pay back what you borrowed
  • Fixed repayments mean you can actually plan around it

So while borrowing for food isn’t something we’d ever recommend as Plan A, if you’re in a rut, this is a safer Plan B.

How to get it

Applying is straightforward. Head to the Food Club page and fill in a quick application form (they’ll ask about income and outgoings to check it’s affordable).

If you’re approved, the card’s usually ready within a couple of days, and you can use it straight away for your food shop.

Already borrowed and repaid before? You can usually reapply once you’re clear.

How to make it work harder

If you’re lucky enough to be accepted, make the money stretch:

  • Write a meal plan before you shop – no impulse aisle‑wandering
  • Bulk buy the 3‑for‑£10 freezer deals and cook in batches
  • Stock up on value staples like pasta, beans and frozen veg
  • Borrow only what you know you can pay back – the last thing you want is to swap food stress for debt stress

Final word

Borrowing to buy food is never ideal. But if you’re in a tight spot and the alternative is racking up Klarna debt or a credit card you’ll struggle to clear, Iceland’s Food Club is the better option.

There’s no interest, no sneaky charges and the repayments are easy to budget for.

It’s not a fix, but it could stop a short‑term wobble turning into a bigger financial problem.

Read next:

How to get FREE food and drinks – apps and other ideas

Where kids eat free this summer 2025

  • About
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Naomi Willis
Naomi Willis
Content editor at Skint Dad
Naomi knows the burden of living on very little and became debt free by following her own money saving tips and tricks. She is an expert on saving money at the supermarket and side hustles.
Naomi Willis
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