When can I apply for a loan and how much can I borrow?

When can I apply for a loan?

Provided that you are a member over 18 years old, and agree to save regularly, you are eligible to apply for a loan. Find out the cost, and compare us with other lenders, by clicking here.

How much can I borrow?

All applications for loans are considered by our Credit Committee and are subject to our Loan Policy. You can ask to see the Loan Policy by contacting staff at our collection points or head office. We try to help as many members as possible but, occasionally, we have to limit the amount we can lend. As a new member, the most important details are as follows:

  • You must complete our Loan Application form fully, accurately and honestly. This requires you to provide details of your income and expenditure. You may be interviewed and asked for proof of these details.. This is because we need to be sure that you can comfortably repay your loan. We may check the information you provide by referring to a Credit Reference Agency
  • You must be over 18 and must have saved regularly with us or agree to save regularly and you must be over 18.
  • Your loan must not exceed your savings (share balance) by more than £1,000 throughout its term.
  • You must continue to save regularly with us whilst repaying your loan - at least £3 a week (£1 if unwaged).
  • .Because your savings (shares) are our only security, you will normally only be allowed to withdraw savings in excess of your outstanding loan amount.
  • The Credit Committee make decisions on whether to grant each loan, how much will be lent and over what period repayments must be made. These decisions are based on a number of factors. The decision of the committee is final

How long do I get to repay my loan?

We normally expect you to repay your first loan within 12 months, but later loans may be repaid over longer periods, up to a maximum of 36 months. Loans for certain purposes must be paid within a specified period. Examples are:

  • Electricity, gas and phone bill
3 months
  • Holidays
12 months
  • Christmas
12 months
  • Car tax, MOT, insurance
12 months

What if I have problems repaying my loan?

If you are ill, lose your job or have some other genuine reason why you cannot make a repayment on your loan, you must let us know right away. We will do all we can to help you, provided that you explain your circumstances promptly and honestly. Any missed payments must be made as soon as you are able.

Remember, all our loans are money saved by our members and we have a duty to recover all loans made. If regular loan repayments are not made, this may cause delays in making loans to other members. This may also prevent us from granting you a futher loan in future. We reserve the right to notify Credit Reference Agencies when repayments are not made according to your loan agreement and this may affect your ability to borrow from other organisations.

As a last resort, we reserve the right to cancel a loan agreement when the borrower has not been making repayments in accordance with the terms of the agreement. In this case we may demand immediate repayment of the whole of the loan. We may also take such legal action as is necesssary to recover such a debt on behalf of our members.