A credit union loan includes the following benefits:
- Low rates.
- Weekly and monthly repayments
- No set-up fees
- No penalty charges for paying off the loan early
- Save while you repay the loan
- Free Life and Loan Insurance
- Easy budgeting with fixed repayments
A credit union loan can be granted to any member over 18 years old. You can join and apply for a loan at the same time.
How to apply for a credit union loan
Please read about the two credit union loan products below, choosing the one that suits your circumstances.
To apply you will need your national insurance number and bank account and sortcode details.
To get the fastest decision use the Open Banking service. If you provide this access, you do not need to send in your bank statements. You will need online access to your current account, so have your log in details to hand. This will result in a quicker decision.
If you do not submit your details by Open Banking, you can also upload your bank statement . Please have a .pdf version of your most recent statement to hand.
We have provided instructions, showing how the online application process works.
For new and existing members who need to borrow, but don’t have much in savings.
If you are tired of paying too much when you’re only borrowing a little, we charge less than Payday loans or Home Credit. A poor credit history does not prevent you from applying for a credit union loan.
As a rule of thumb you can apply to borrow up to one month’s income. For example, if your income is £1,000 you can apply to borrow up to £1,000. If you take home £2,500 each month you can apply to borrow up to £2,500. First-time applicants can borrow up to £1,000.
If you have an existing loan with us, the total amount you apply for should include your current loan balance. For example, if you already owe £1,000 and want to borrow £500, you should apply for £1,500. The maximum top up loan is £2,000.
To apply for more than £5,000 you must be a homeowner.
Please note. The repayment value and total amount repaid are illustrative and rounded to the nearest £. The final amounts can vary, depending on the actual date you take our your loan.
If you are applying as a new member, we undertake a identity check using a Credit Reference Agency. If you do not pass this check you will need to upload two identity documents. These could be a passport, driving licence or recent bank statement to prove your identity. A utility bill can be used to prove your address. This can be uploaded in any format, including taking a photo from your phone.
For people who have been members of the Credit Union for at least two years and have at least £500 in savings.
It seems as if savers are being punished these days. Rate for savers have fallen dramatically, yet at the same time the cost of borrowing has risen. At Central Liverpool Credit Union we believe that savers should be rewarded not punished. If you have saved with the Credit Union you can enjoy a lower rate of interest.
A member loan is based on your shares/savings balance at the Credit Union. You can borrow up to three times your savings, subject to affordability.
Interest is charged at 1% per month on the reducing balance of the loan (12.7% APR).
Working out what you can afford
Need to work out how much you can afford to repay each week or month? Try the budget calculator from the Money Advice Service:
For members who own businesses that need working capital or to make a larger purchase.
Our corporate loans help members grow their businesses by improving cash flow. Rates of interest for business loans varies between 6.2% to 12.7% APR depending on the following:
- Secured loans attract a lower rate
- Director Guarantees or charge on a personal asset will attract a lower rate
- The level of risk attached to the loan
- The amount borrowed – rates are better for larger loans
Contact us to find out more.