Affordable Loans
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When it comes to borrowing money, we make everything simple! We are able to offer loans of between £100 and £3000, with a typical monthly rate of 2% on a reducing balance. All loans are approved on a capacity to repay basis, so poor previous credit may not be a problem. No fees. No fuss. |
More Information
The Lincolnshire Credit Union is able to offer low-cost loans to our members. Unlike other lenders, our acceptance criteria is based on the ability to repay the loan rather than past credit history.
Typically, we charge on average just 2% per month on the reducing balance, an APR of just 25.35%. Please note that the amount of interest you pay will depend on your personal circumstances, and members with proven payment histories can recieve rates of just 1% per month (12.68%).
Please see our Guide for improving your chances of being accepted for a loan.
The loan calculator below (requires Flash Player to be installed on your computer) allows you to estimate your monthly commitments and estimate repayment periods. Please note that this is for illustration purposes only, and the actual figures and interest payments may differ based on your circumstances.
For more information please see our Forms section.
Frequently asked questions:
How do I apply?
Complete a Loan Application form and then return it to either the Credit Union Office in the post or hand it to one of our development workers.
How do I repay the loan?
Through Payroll deduction, cash or standing order, in the same way you save. All loans must be paid back within 3 years and members must keep saving regularly.
Insurance?
Members up to the age of 70 qualify for free loan insurance so, in the event of their death, their loan can be automatically paid off.
Are my savings used towards my loan?
Only if you are in arears with your loan payments. Usually, your savings stay in your account and, while you are repaying your loan, you continue to save. When your loan is repaid you will have more savings than you started with.
Can I withdraw my savings at any time?
Members' savings are the only collateral that the Credit Union has for members' loans and so may not be withdrawn while the balance of the loan is greater than your savings. When the loan balance is below the saving balance, the difference between the two can then be withdrawn.
Can I take out another loan before the rest is repaid?
Members with a good repayment record can apply to 'top-up' their loans once a year. The loan repayment is recalculated and a new loan agreement drawn up.
How do I receive my money?
By cheque. We ask you to call at the office to sign a Loan Agreement and collect your cheque. If it is to pay an invoice (for a holiday, for example), the payment can be made direct to the firm on your behalf. Just arrange this service with us.
