Borrowing from a Credit Union
Why is a Credit Union loan better?
A Credit Union loan has some unique features:
- Loans have no hidden fees or transaction charges.
- Interest rates are reasonable and affordable.
- Repayments are calculated on the reducing balance of the loan. This means the interest payments get smaller as the loan is paid back.
- Credit Unions customise each loan to suit the conditions and need of eachmember.
Loans can be repaid early with no penalty - and a saving of interest!
How much does a Credit Union loans cost?
Most Credit Unions charge 1% on the reducing balance of your loan each month. This is an Annual Percentage Rate of 12.68%.
In practical terms, a £1000 loan repaid over a year would have a maximum interest payment of £65. Hence you would pay back a total of £1065.
For Credit Unions each loan is equally important - no matter how small the loan your Credit Union will assist you.
What about repaying the loan?
Credit Unions are very flexible and understanding organisations. They exist only to serve their members. Your Credit Union will help you choose a repayment plan which suits your individual needs.
If your circumstances change and you need to alter your loan terms, your Credit Union is there to help.
How do I apply for a loan?
Only Credit Union members can apply for a loan. If you are already a member, speak to your Credit Union about making an application.
If you are not, drop into your local Credit Union for more details and a friendly welcome.