Important Guidance Notes For ‘Saver Loan’ and ‘Flexi Credit’ Applicants

Loans

Any member of the credit union may apply for a loan at any time, but we normally expect people to have saved for a short period  before applying for a loan.  Our interest rates start at 6.2% APR for our Security Loan.  Our most popular loan is the Saver Loan which is charged at 1% per month on the reducing balance (12.6%APR). 

Saver Loan Example

You will pay only £67 interest on a Saver Loan of £1,000 repaid over a 12 month period!

You will have at least £240 more in your savings account once the loan is repaid!

As you repay the loan we put part of your regular payment into your own savings account.  This means that you will always end up with more in your savings account than you will have paid in interest.  Over time, as your savings continue to grow, you will reduce, then end, your need to borrow.

We assess all loan applications based on the individual member’s circumstances and a previous poor credit history does not prevent you getting a loan from us as long as you disclose this history and can evidence your ability to afford the repayments.  We do ask for supporting information and the more of this you are able to supply with your loan application the more likely your application is to be successful.  Please read these guidance notes before submitting your application with as much supporting documentation as possible.

For members saving through payroll deduction schemes we offer a Flexi Loan facility that means you only have to provide the supporting documentation once every 2 years instead of each time you wish to borrow.  If you are using the Payroll Deduction Savings Scheme please take a look at the flexi credit page on this website.

Last amended on Monday October 24, 2011