Applying for a Loan

Credit Union Loan – Applying for a loan

  • Apply for your loan at least one week in advance of when you require it.
  • Loans take 5 working days to process, depending on demand for the month (for example at Christmas) this may take longer, so do apply with as much notice as possible
  • Choose the loan that your require [Standard (secured by shares). Standard. White Goods deal. Low income/benefit deal (through benefits pay in)]
  • You can apply for a Loan at any of the collection points, at the main office or over the phone (paperwork is required to be signed)
  • The Credit Committee meet on a weekly basis, every Tuesday at the main office to process Loan applications.
  • When repaying your Loan the Credit Union expects you to continue saving. As you are borrowing more than your savings, you help other members and yourself by repaying your Loan as quickly as possible and by increasing your savings. This keeps the pool of money increasing for further applications.
  • Once a loan is granted and loan terms have been agreed with you, you will be issued with a cheque which you can cash at one of the Lloyds TSB banks the credit union works with (branches at Seaton, Woodside and Rosehill participate) The encashment facility will only be for the day that you agree with the credit union and identification will be requested by the bank staff.

Standard Loan (secured by shares)

Members who apply for Loans which are equal to or lesser than the value of their savings (secured) will be passed straight away and processed within one week or sooner if possible. Loans repayable over 52 weeks at an amount you can afford on a regular basis (interest rate 1% in the reducing balance 12.7% APR) For more detailed information see the credit union’s loan guidelines which you will have received within your welcome pack and or are available from the main office and collection points

Standard Loan

Open a credit union account and save a regular amount for between 10 to 13 weeks, then apply for a loan double your savings. Loans repayable over 52 weeks at an amount you can afford on a regular basis (interest rate 1% in the reducing balance 12.7% APR)
For more detailed information see the credit union’s loan guidelines which you will have received within your welcome pack and or are available from the main office and collection points
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White Goods Deal

(brand names energy efficient NEW cookers, fridge freezers and washing machines with a years guarantee from the manufacture). The Cash In Your Pocket Partnership special deal through Co Operative Electrical means that brand named new energy efficient “A” rated appliances are available through the credit union at discounted prices.
New credit union members need to pay in a percentage of the goods total price into their savings to apply for a credit union white goods loan deal which if granted means having a brand new single item – this could be a new electric cooker or fridge freezer or washing machine. Loans repayable over 52 weeks at an amount you can afford on a regular basis (interest rate 2% in the reducing balance 28.8% APR)
For more detailed information see the credit union’s loan guidelines which you will have received within your welcome pack and or are available from the main office and collection points

Low income / benefit deal loan (direct benefits payments)

Open a credit union account or reactivate a dormant credit union account
Loans interviews ONLY at the credit unions main office by appointment

Show proof of income of your benefits along with identification of who you are and where you live and you can apply for a loan between £50 and £500 which you repay from your benefits.

If appropriate the loan can be paid on to the pre paid card the credit union offers through CREDECARD the prepaid card provider that the credit union is working in partnership, so you can spend your money in the the shops or online.
Loans repayable over 26 weeks to 52 weeks at an amount as agreed that is affordable to you (interest rate 2% on the reducing balance 26.8% APR — 1% interest refunded on 100% exact loan completion as per the terms of the loan agreement)

Borrow instead of withdrawing your savings.

You are then contributing to the co-operative and so helping make further loans possible.

  • Members continue to save when repaying back a Loan.
  • The savings element is usually at least £1.00 a week and is made in agreement between the member and the Credit Committee. As you replace the money borrowed you are also increasing your savings and the pool of money available for other members to borrow from. The credit union needs everyone to save to be able to offer loans.
  • This means at the end of the Loan period your initial savings have increased. You can have access to them or you can use them as part security for further borrowing

The Credit Union works under the Prudential Regulation Authority Regulations – St Machar is a Version One Credit Union
For more information click to credit unionsinformation at the money advice service