DISCOVER........taking on a loan with someone you can trust
Need a loan?
Then why not consider borrowing from Discovery Credit Union.
Most people need to borrow money at some point in their lives. Our members borrow money for all sorts of reasons - to help pay for Christmas, family holidays, a new car or carrying out home improvements or for covering the cost of replacing household items, buying a new computer or consolidating debts. Whatever your reason, we will help you find a loan that suits your needs. Our rates are competitive, fair and affordable and every loan comes with free life insurance cover ensuring complete peace of mind without the added expense.
We have found that people looking to borrow only a few hundred pounds often find they have very limited choices. Banks and building societies don't seem to offer smaller amounts for short terms - they generally look to lend much larger amounts. If you don't have a good credit history, or don't have a bank account, you may not be able to get credit at all on the high street. People in Dundee who need to borrow smaller sums often end up paying huge amounts of interest through borrowing from pay day loan companies or through lenders who call to your house. We also know that trying to afford the repayments on these loans can cause a great deal of stress and put a real strain on your household budget. That's where Discovery Credit Union can help! Our Discovery Loan is designed to give people access to up to £300 immediately, without the need to save first.
We will consider loan applications for any worthwhile cause. Each application is considered on its own merits and with the utmost confidence. It is our policy to meet the borrowing requirements of as many members as possible, depending on the available funds. As a responsible lender, Discovery Credit Union believes in ensuring you can comfortably repay your loan and would never knowingly place a member in more debt than they can afford. Equally, rather than turning down a loan altogether, we may instead offer you a smaller amount. As an ethical lender, we try to help you to be financailly responsible through budgeting, planning and saving.
Our promise to members:
- - No arrangement fees
- - No penalty for early repayment
- - Competitive interest rates
- - Free life insurance on loan balances
Lending criteria
- - We only lend to members
- - You can apply for a Discovery or Freedom Loan if you are not currently a member but you will be expected to join and show a committment to save alongside loan repayments.
- - Our Secure Savers Loans and Standard Savers Loans require you to show a regular pattern of savings before applying.
- - Loans are secured against your savings
How much interest is charged on loans?
By law, credit unions cannot charge more than 2% per month on the reducing balance of your loan - so you are always guaranteed a good deal! We do not charge arrangement or late payment fees. Discovery Credit Union believes in rewarding members who save on a regular basis so you will find our best deals are offered to members who show a regular savings pattern. Interest on our loans is charged daily on the outstanding reducing balance - so the quicker you repay the loan, the less you will be charged in interest!. We do not charge you any penalties for repaying loans early.
Choosing the right loan for you
Secure Savers Loan - 0.8% per month (8% APR)
For members wishing to borrow an amount equal to, or less than, their savings.
Standard Savers Loan and Standard Savers Loyalty Loan - 1% per month (12.68% APR)
For regular savers who wish to borrow an amount based on their level savings
Discovery Loan - 2% per month (26.8% APR
For new or current members who have very little, or no savings, but are looking for an affordable loan. These loans are ideal if you are receiving benefits or on a low income. Your first loan would normally be a maximum of £300 with top ups available to £600. terms and conditions apply.
Freedom Loans - 2% per month (26.8% APR)
For anyone wishing to borrow larger sums of money. Loans available for between £1000 and £5000. Repayments can be taken over five years. Full credit check undertaken.
Loan applications
Applications for loans are made on a standard loan application form which are available from our office, from your local collection point or to download from this site. To support your application you will need to provide *acceptable proof of income and recent bank/Post Office statements. Where an applicant is employed, we will need to see your last 3 payslips. Originals please which we will photocopy and return to you.
Secure Savers Loan, Standard Savers Loan, Standard Savers Loyalty Loans and Discovery Top Up Loan applications can be submitted by post, or by handing in at our main office or local collection points.
Discovery Introductory or Freedom Loan applications are made by personal interview only. Please contact our Main Office for an appointment.
Unfortunately, we are not yet able to accept online applications.
*Acceptable proof of income includes recent payslips for those members in work or benefit/tax credit/pension award letters for members out of work or retired. Bank or Post Office statements must cover your last three months transactions.
Our staff will be happy to give you any assistance required.
Loan applications are considered by our team of trained staff and Credit Committee volunteers. We aim to give you an answer within 7 working days once we've got all the information we need. In deciding whether to grant the loan, our loan assessors will take into account your record of saving (if required) and any previous loan repayments, as well as your ability to repay the loan. Our loan form asks you to declare all your regular expenditure, but sometimes we may have to contact you to clarify the information supplied. Your application is subject to a thorough assessment which may involve a credit check as well as your past experience of credit and other factors. If you have got into difficulties in the past, it won't necessarily stop you having a loan - just give us full details on your application form.
Having a regular savings history and good previous loan repayment history with Discovery Credit Union can help.
Once the loan is granted, you will be invited to attend our Main Office to sign a credit agreement, which is a legally binding document and your promise to repay the loan and commit to regular repayments. We will also confirm your associated savings plan.
Don't forget that with Discovery Credit Union, you are borrowing your fellow members' money - never apply to borrow if you're not completely committed to repaying and do not commit to a loan unless you can afford to repay
Planning and managing repayments
Discovery Credit Union is flexible with regard to repayment plans and as an ethical lender, we will never force you into paying something you can't afford. There are some maximum terms for our Discovery Loans. You will be advised on the best repayment plan to meet your circumstances. Members are generally advised to repay a loan in as short a time as possible, especially if you are looking to borrow on regular occasions for things like Christmas or holidays. There are some legal limitations on the length and amount of loans. Five years is currently our maximum loan term. Should you experience difficulties in meeting your repayments, we would encourage you to contact us as soon as possible to discuss the situation. We will treat the situation sympathetically and in total confidence. Our staff will discuss with you a suitable way forward. Arrears of loan repayments will be pursued in line with our recovery policy but at every stage of the way, members will be encouraged to discuss with staff a suitable way to bring accounts back into line. We will take all necessary steps to recover monies owed to Discovery Credit Union including the use of external debt collection companies and where necessary, legal action.
