Loans Policy
  1. All loans are subject to the availability of funds and the amount of shares held by a member. 
  2. We require one week's notice as our loans committee meet each Tuesday.
  3. Members must be aged 18 or over to be granted a loan.
  4. A guarantor may be required if recommended by the Credit Committee. A member must have saved on a regular basis over a 3 month period.
  5. From the 1st of November  2011 interest will be charged at 1.5% a  month (APR 19.6%) on new loans. Interest is added daily.
  6. All refinance loans will be charged at the new rate of 1.5%. For example if you have an existing loan of £500 and require  a top-up of a further £500 you will be charged at the new rate of 1.5% and the loan will need refinancing. This ruling will also apply to revolving credit loan top-ups.
  7. From the 1st September 2011
  8. All new loans will be twice members' savings.
  9. Loan amounts are at the discretion of the loans committee..
  10. In individual circumstances the loans committee may use a credit referencec agency, called Equifax to check member's details. This will be at the consent of the member, and all information will be confidential in accordance with the Data Protection Act 1998.
  11. Repayments will be agreed to suit budget and individual circumstances and interest may be charged at 2%.
  12. Loan applications will not be accepted without the following documents, which must be recent:
    • 3 months bank statements
    • 3 months wages slips, or proof of benefit
    • 1 Utility bill
  13. A signed letter must accompany an application if it is presented by anyone other than the applicant.
  14. All details on a loan  form must be completed especially the health declaration.
  15. We must point out that on pre-existing - condition limitation (Cuna Mutual) the following rules apply:
    • Savings and loan insurance carry a 6 month pre-existing condition limitation, as standard.
    • Each new share deposit/loan agreement a member makes is governed by the 6-month pre-existing condition.
    • Benefit will not be paid on the members outstanding share/loan balance if death results from a pre-existing illness or injury for which medical advice, consultation or treatment was received within 6 months prior to making a share deposit/loan. 
  16. It is important that members continue to save whilst repaying a loan so a minimum amount of £1 must be saved each month whilst a loan repayment schedule is in place.
  17. Loans can be taken out over a maximum period of 3 years for an unsecured loan and 7 years for a secured loan.
  18. You can obtain a loan by application form which are available on the 'Application Forms' section of this website.  Otherwise forms can be collected from our main collection point at the Hyde or can be posted to you if you leave a message on our answerphone (once the message has been reviewed).