Loans

What is the cost of a Credit Union loan?	By law Credit Unions can charge no more than 12.68% APR. This is equal to an interest charge of £6.50 per year for every £100 borrowed. Provided they are over the age of 18 and have fulfilled the conditions of membership and the Credit Union's loan policy, a member can use the loan for anything.
Do Credit Unions encourage people to get into debt?	NO, Credit Unions encourage their members to save first then borrow within their budget. In the event of a member's death - what happens to their loans?The loan is cleared, so that there is NO outstanding debt to pass on to the next of kin.
How the Credit Union makes loans	Loans are given for any productive purpose - see the loan policy held in our office. The key points to note from the policy are: loan applications can only be made after a member has saved for 13 consecutive weeks; loans are normally granted up to 2 times your share balance, first loans are repayable within 12 months, members are encouraged to continue saving during loan repayment, member's share balance is held as security during the loan period. The loan policy is reviewed on a regular basis and members should ensure they are informed of any changes when applying for a loan.
Size of secured and unsecured loans	An unsecured loan can be granted for a maximum period of 2 years and the member can borrow up to £5,000 more than their share value, i.e. up to a maximum loan of £10,000. A secured loan can be granted for up to 5 years; a Credit Union may itself secure the loan.

Loans can be used for improving houses and towards buying a car, among many other things

How do I get a loan?

Go along to our office in Stainforth and join - this scheme is for local residents only