Need a Loan?

"The Credit Union offer a range of services to our members"

The Credit Union will consider loan applications from members for any worthwhile purpose. Each application is treated in the utmost confidence and will be considered on its own merits. It is credit union policy to meet the borrowing requirements of as many members as possible, depending on the available funds.

Applications for loans are made on a standard loan application form. Loans can be applied for by calling to our office, by telephone or via the members section of the web site. Our staff will give you any assistance required. Loans will then be considered by a Loan Officer, or will go to the weekly Credit Committee meeting.

What you need when applying for a loan

In deciding whether or not to grant the loan the loan officer or credit committee will take into account the member’s record of savings and loan repayments, as well as ability to repay. Once the loan is granted the member will be asked to complete a promissory note, which is a legally binding document being a promise to repay the loan, and to commit to regular repayments.

Remember - only members are eligible to receive loans from your credit union.

Planning and managing repayments

Credit unions are flexible with regard to repayment plans, though there are some legal limitations to length and amount of loans. The members will be advised on the best repayment plan to meet their own circumstances. Members are generally advised to repay a loan in as short a time as possible. 3 years is currently the maximum loan term. Should a member experience difficulties in meeting repayment commitments, they should immediately explain the situation to the credit union, which will treat the matter sympathetically and in total confidence. Depending on circumstances, the loan will be renegotiated if possible.

There are no penalties associated with clearing your loan quicker than agreed.

Interest on credit union loans

By law credit unions cannot charge any more than 2% per month on the reducing balance of a loan. This represents an interest rate of 27% APR (Annual Percentage Rate). Oldham Credit Union’s current policy is 2% per month representing 27% APR. Credit unions do not charge fees or transaction charges. Since the interest is charged only on the outstanding balance of the loan, you will pay even less if you repay in a shorter time than planned.

Loans FAQ

How do I apply how long will it take?
Members complete an application form that is available at all collection points. A decision should be made within a week.

How Much Could I Borrow?
The amount you could borrow will depend on a number of factors, including what you can afford to pay, the amount you have saved, the length of time you have been a member and whether you have repaid previous loans on time.

Could I take Out A Loan Even If I Already Have An Existing One?
Yes, you can have a loan to pay off other debts, or to top-up an existing Credit Union loan.

How Much Will It Cost And What Is The Interest Rate?
£100 borrowed over 1 year will cost you £13.47 in interest (APR 27%). This compares very favourably with any other source of lending.

I Have Poor Credit Rating, Some CCJ’s And Have Been Refused Credit Before, How Will This Affect Me?
You earn your own credit rating based on your regular savings. no one is pre-judged with past credit ratings.

Loan Calculator
Work out your repayments using our handy Loan Calculator »

Repayments FAQs

How Do I Repay My Loan?
You repay your loan along with your savings. For example: If you have been saving £3 per week. After receiving your loan, you could still pay £3 but £2 goes towards your savings and £1 towards repaying your loan. This example shows how your savings grow while you pay off your loan. The Credit Committee can help you work out how much you can carry on saving and how much you are able to pay back on your loan. Payments must be made as agreed.

When Do I Start Paying Interest?
With your first repayment you will pay interest at 2% per month on the reducing balance of your loan.

What Happens if I Can’t Manage To Make The Repayments?
The Credit Union is there to help you but you must let someone from the Credit Union know, as soon as possible, if your circumstances change. To be fair to all members, the Credit Union cannot allow loans to remain unpaid and will follow agreed procedure to recover monies owed. Oldham Credit Union can also advise you where to get confidential help through Welfare Rights or Debt Counseling Services.