Loan Guidelines

The following guidelines apply:

  • The maximum repayment term is 36 months (although our low interest rates generally allow you to repay over a shorter period)
  • There are no fees for setting up the loan and no fees for administration or other hidden charges will be made
  • The interest rate is calculated daily on the reducing balance. The quicker you repay, the less interest you pay.
  • Saving continues as your loan is being repaid with a minimum £3 per week or £12 per month added to your Membership Account balance from each deduction.
  • Free Loan Protection insurance is provided up to age 70 subject to policy restrictions.
  • Due to loan insurance restrictions, applicants aged 70 or over will not be able to borrow in excess of their savings balance.
  • Refinancing is available for members looking to increase their borrowing on second or subsequent loans (subject to savings qualification)
  • Top up loans will only be considered when the loan balance is £200 or less
  • No more than three top-up loans will be permitted per year.
  • Members may only have one loan running at any time.
  • Proof of income may be required. If the loan is based on joint income, proof from both parties may be required.
  • Loans are secured against savings, withdrawals aren’t permitted unless outstanding loan value is less than shares.
  • For higher value loans, an additional party may be required to act as guarantor for the loan.
  • Loan applications may be subject to credit checking.
  • If paying monthly or four-weekly your first repayment is due within one month from the date we provide the loan to you. However, if your repayment date is within 9 days of us providing the loan to you, your first repayment will be due on that date in the following month. We charge interest from the date we provide the loan.