The bank has reported a 50% increase in the number of enquiries about loans in 2006 so far, compared to the whole of 2005. The majority of organisations seeking loans were faith-based groups, with arts and heritage organisations and the social care sector also showing a keen interest. Figures also reveal that, to date, Charity Bank has provided £135 million in loan finance to the sector.

Responding to the figures, chief executive Malcolm Hayday said: “Many more charitable organisations are waking up to loans as a viable alternative to restricted funding streams...

"With grants drying up and Trusts and other donor organisations focusing their funding on fewer areas, loan finance is becoming an important part of the financial toolbox for enterprising charities,” he said.