Borrowing from Your Credit Union…
The amount you may borrow from your credit union is linked to the amount of savings you have with the credit union. Low cost loans are a major benefit of credit union membership, as millions of people around the world have found out.
Where else could you borrow £1000 over 1 year for just £65 in interest charges?
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The interest on a credit union loan cannot, by law, be more than 1% a month on the reducing balance (12.68% APR). |
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All loans are insured at no cost to the borrower, so a debt is cleared if you do not live for the length of the loan. |
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Credit unions charge no arrangement fees. |
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Credit unions are about service, not profits. As a member, the staff and officers are there to provide you with a service, not sell you something you don't need, or make rigid demands of you. |
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A credit union will take a person's savings record, with the credit union and their ability to pay as its main information when deciding whether or not to grant a loan. You don't need to have an established credit record to borrow from a credit union. |
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You could pay your loan back straight out of your wage packet, from your bank account, or at a local, convenient office. |
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Credit unions do not make an additional charge if a loan is paid off early. |
| Approximate payments based on 1% per month interest – 12.68% | |||||
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| Amount of Loan | Length of Loan | Fees | Loan Protection Insurance | Total Interest Payable | Total Amount Payable |
| £200 | 1 year | NIL | Free | £13.30 | £213.30 |
| £500 | 1 year | NIL | Free | £33.10 | £533.04 |
| £1000 | 1 year | NIL | Free | £66.20 | £1066.20 |
| £1000 | 2 years | NIL | Free | £129.70 | £1129.70 |
| £2000 | 1 year | NIL | Free | £132.40 | £2132.30 |
| £2000 | 2 years | NIL | Free | £259.60 | £2259.60 |
| £5000 | 2 years | NIL | Free | £648.88 | £5648.88 |
All loan applications must be made on a Loan Application Form which is available from the credit union office or from the Forms section of this site. The Credit Committee meet once a week to consider applications. Once the Credit Committee have approved an application, a loan agreement form will be prepared for the members signature. Payment of loans can be made by cheque of direct to your bank account.
