"The Credit Union offer a range of services to our members"
Members please note that applications for loans will be considered and allocated according to eligibility and availability. If approved, loan applications normally take 10 & 14 days to process.
AS WE ARE NOW IN PEAK PERIOD - DEMAND FOR LOANS HAS INCREASED DRAMATICALLY SO WE ADVISE THAT YOU SPEAK TO US FIRST IF YOU ARE THINKING OF APPLYING FOR A LOAN. AS USUAL WE CAN ONLY GIVE OUT WHAT WE GET IN AND LOANS ARE ISSUED ON A FIRST COME FIRST SERVED BASIS.
Remember, loans are NOT guaranteed and you should plan in advance- you shouldn’t commit to expenditure if you are relying on a CU loan prior to confirmation that your loan has been approved and been given a payment date.
PLEASE NOTE SAVINGS CANNOT BE WITHDRAWN FROM SHARE ACCOUNT 1 WHILST YOU ARE REPAYING ANY LOAN.
Our Loan Products:
THE MULTIPLIER LOAN
Members aged 18 - 65 can apply for a loan once they have been saving regularly for 12 weeks / 3 months prior to the loan application. PLEASE NOTE at least a 3 month time period must have gone by from the issue of a multiplier loan before a Flexiloan will be considered.
FIRST TIME LOANS - Up to 3 times the value of savings in Share Account 1 up to a maximum of £2,000 - repayable over a minimum of 12 months - maximum 36 months.
2ND & SUBSEQUENT LOANS - Up to 3 times the value of savings in Share Account 1 up to a maximum of £5,000. Ratio's for ALL loans may be reduced ie to 2 times savings during peak demand periods. Please check at time of application.
You must complete your application form and forward to us with the necessary documentation required (SEE TABLE FURTHER DOWN PAGE). Failure to complete the form correctly or supply the required information will result in delays.
You may apply for a 'Top Up' loan up to £3,000 (subject to terms & conditions) when you are half way through the repayment period if its your first loan or one third of the way through for 2nd and subsequent loans. Top Up Loans are at the discretion of the Loan Officer. The existing loan and top up loan will be the new loan balance and will be subject to the interest rates at the time.
You are allowed to make deposits into Share Account 1, however any deposit made must be in the account for 1 month from the date of the last deposit made before a loan application will be considered.
Share withdrawals are not permitted whilst a loan is in force which bring the balance of the shares below the outstanding balance of the loan
The minimum 'Top Up' loan amount is £500 - maximum £3,000
Loans for Annual events i.e. Christmas, season tickets, car tax etc must be repaid within 12 months.
You must continue saving at least £1 per week if you are unwaged or working up to 16 hours per week or £2 per week for anything over this.
You must also save enough each week to cover any other products you have with us such as lottery or insurance.
Interest Rates - The Multiplier Loan
Up to £1000
2% per month
26.8% APR
£1001 - £2500
1.5% per month
19.6% APR
£2501 - £5000
1% per month
12.7% APR
£5001 & Over
0.8% per month
9.8% APR
Interest is paid on the reducing balance only
Repayment Periods - The Multiplier Loan
Up to £1000
Repayable within 24 months
£1001 - £5000
Repayable within 36 months
£5001 - £7000
Repayable within 48 months
£7001 & over
Repayable within 60 months
Please contact us for repayment amounts as they vary depending on amount, period and whether or not you opt for Payment Protection Insurance.
THE 65-PLUS LOAN
Available to members 65 and over who have been with us for 3 years or more
Maximum loan is 2 and a half times savings up to maximum of £5,000
Maximum repayment period 36 months however all loans must be repaid by the time member reaches age 75
Members 75 and over may apply for a loan – but this must be secured by shares
Interest rates – same as Multiplier Loan
In the event of death – any shares held by the member will be used to offset the loan and the difference will be written off if not covered by insurance
THE FLEXI LOAN
Available if you have been a member for at least 12 months, saving regularly with no credit related/arrears history with us, and are aged 18-65. If you have a Multiplier Loan with us - then there must be at least a 3 month time period from when the Multiplier Loan was paid out to when you apply for a Flexiloan.
You may normally apply for up to one and half times your total monthly individual income (net income) and provide proof of that income as well as any other documentation required. This may be reduced during peak demand periods and the Credit Union has the right to limit the policy relating to the maximum Flexiloan available. PLEASE NOTE at least a 3 month time period must have gone by from the issue of a Flexi loan before a multiplier loan will be considered.
You must complete your application form and forward to us with the necessary documentation required (SEE TABLE FURTHER DOWN PAGE). Failure to complete the form correctly or supply the required information will result in delays.
Amounts available £100 - £3000
You must always save at least the minimum levels into Share Account 1 no matter what loan you have taken. Share withdrawals are not allowed from Share Account 1 whilst you are repaying any loan whether its a Multiplier/Flexiloan/Emergency or Promotional loan.
Once your loan agreement is signed and you have been give a start date, you will be provided with a ‘Withdrawal Book’ which is then used to draw down the loan.
Interest is 2% per month (26.8% APR) on the balance outstanding, not the full amount applied for
Repayment Periods - The Flexi Loan
All Amounts must be repaid over 36 months
Repayments - The Flexi Loan
Up to £500
£501-£1000
£1001-£1500
£1501-£2000
£2001-£2500
£2501-£3000
Wkly Amt
£4
£8
£12
£16
£20
£24
Mthly Amt
£16
£32
£48
£64
£80
£96
PROMOTIONAL / EMERGENCY LOANS
From time to time we offer promotional loans - terms and conditions usually apply to these loans.
We may also consider emergency loans - you must speak to a member of staff in the first instance.
Make sure you keep in touch with us to find out more or log on to our website, where you can also register a pin number to keep you updated on your account details, balances etc.
TERMS & CONDITIONS - ALL LOANS
The Credit Union will consider loan applications from members for any worthwhile purpose. Each application is treated in the utmost confidence and will be considered on its own merits. It is credit union policy to meet the borrowing requirements of as many members as possible, depending on the available funds. Please remember we can only pay out what we get in each month. At peak demand times share to loan ratio's may be reduced i.e. 2 or 3 times savings and/or other loan products may be temporarily suspended to enable all loan requests to be granted within the available budgets.
Applications for loans are made on a standard loan application form and you must present the required documentation (see table below). Our staff will give you any assistance required. Once received your loan application will then be considered by an authorised Loan Officer.
Remember - only members aged 18-65 are eligible to receive Multiplier Loans and Flexiloans from your credit union. Members aged 65 or over may apply for the 65-Plus loan.
Should a member experience difficulties in meeting repayment commitments, they should immediately explain the situation to the credit union, which will treat the matter sympathetically and in total confidence. Depending on circumstances, the loan may be renegotiated if possible.
There are no penalties associated with clearing your loan quicker than agreed. Share withdrawals are not allowed from Share Account 1 whilst you are repaying any loan with the credit union.
By law credit unions cannot charge any more than 2% per month on the reducing balance of a loan. This represents an interest rate of 26.8% APR (Annual Percentage Rate). Credit unions do not charge fees or transaction charges. Since the interest is charged only on the outstanding balance of the loan, you will pay even less if you repay in a shorter time than planned.
All Loans are insured at no cost to you - contact us for further details
Loans are not guaranteed - you should plan in advance and discuss your application with a member of staff. Please do not commit to expenditure if relying on a credit union loan, without first getting confirmation that your loan has been approved and you have been given a payment date. In particular members who have had previous credit control records/arrears issues and who have fully repaid all loans and associated costs, may apply for a new loan, after they have established a new regular savings pattern with us for a minimum of 6 months following repayment of the loan with costs. The new loan may be granted on no more than 1 times savings ratio i.e. loan secured by savings. If granted top up's will not be granted.
DOCUMENTATION REQUIRED - ALL LOANS
ALL FLEXI LOANS
Proof of Income required (last 2 months payslips or equivalent)
ALL Loans up to £2500
Income & Expenditure declaration to be completed on application form
ALL Loans £2501-£5000
Above PLUS last 3 months bank statements and payslips (or equivalent)
ALL Loans £5001 & Over
All of the above PLUS a Credit Reference Check may be carried out
Loan Officers have the right to request further information at any stage of the loan process.
LOAN REFUSALS - APPEALS
If you wish to appeal against the decision to refuse a loan by a Level 1 Loan Officer, you should appeal in writing to a Level 2 Loan Officer. If the decision to uphold the refusal still stands and you are still unhappy, you may make a final appeal in writing to the Board of Directors, who's decision is final.
If you wish to appeal against a decision to refuse a loan by a Level 2 Loan Officer, then you should appeal in writing to the Board of Directors, who's decision is final.
Staff will assist you in respect of Level 1 or Level 2 Loan Officer Status
05 September 2010
