Loans
The provision of low cost loans to members is a vital part of the objectives of the credit union. We are here to help you in your time of need!
The credit union has a credit committee that is responsible for the general supervision of all loans to members.
How much does it cost?
Loans from your credit union carry an interest rate of 1% per month on the reducing balance of the loan.
There are no initial loan charges and no commissions.
Example:
Borrow £100 and pay it back regularly over a year and it will cost you just £6.56 in total, less than the cost of one loaf of bread per month.
In legal terms this translates to 12.68% APR, but remember, you're paying back the loan all the time and not the interest first, which is something the APR figures don't take account of.
What are the criteria to qualify?
To qualify for a loan you should:
- Be a member
- Be 18 years or over
- Demonstrate your ability to repay the loan
- Intend to use the loan for a provident or productive purpose
You no longer need to have had savings over 3 months. Our new "Freedom Loan" means new members can apply straight away! There is an upper limit of £750 on these loans and the interest is 2.0% per month - still much cheaper than doorstep loans and most credit cards.
Top-up loans and refinancing services are also provided at members’ requests and based on circumstances. Feel free to contact us for further information.
How quickly are loans granted?
Your loan may be approved and dispersed within minutes of your application or it may take up to two weeks. The time it takes will depend on the loan value requested, the information provided and the next scheduled date for the credit committee’s meeting.
Emergency loans will be considered for faster approvals.
To apply for a loan complete your downloaded Loan Application Form and return it to our office with your originals of the listed items on the Requirements Sheet.
Click here to download Loan Application Form
Click on the here to read more on our Loans Policy
