5 Easy Steps to borrowing from your Credit Union

Applying for a loan is easy for credit union members who are aged 18 and over and who save regularly:
  1. Join the credit union and save an affordable amount of money on a regular basis.
  2. After ten weeks you could apply for a loan of up to twice* the total amount you have saved, repayable over 12 months or 52 weeks.
  3. Complete a loan application form which will then be considered by the Credit Committee. The Credit Committee consists of trained volunteers who are also credit union members. For large loans, the Credit Committee may invite the member to an interview.
  4. Repay your loan weekly, monthly, fortnightly or 4-weekly by keeping to the repayment plan and carry on paying into your savings at the same time. Your savings stay in your account while you are repaying your loan (but once your loan balance is below your savings balance, you can withdraw the difference if you need to).
  5. If you are having difficulties keeping up with your loan repayments, don't ignore the problem, but come and talk to us. We will listen sympathetically to any change in financial circumstances and work with you to get your repayments back on track.

    6. (*for second and subsequent loans you could apply for a maximum of 3 times your savings)

How much will a credit union loan cost me?

We charge interest @1% per month on the reducing balance (that's an APR of 12.68%)

Examples:

A loan of £100 would cost £2.12 per week for 50 weeks - total repaid £106.00

A loan of £500 would cost £10.60 per week for 50 weeks - total repaid £529.98

A loan of £1,000 would cost £21.20 per week for 50 weeks - total repaid £1059.95

(please note the final repayment amount in week 50 will be lower)

Other benefits of our loans

  • No arrangement fees
  • No penalty fee if you decide to repay your loan early
  • Free loan protection insurance (click on link above for more details)

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