Norfolk Credit Union Loans
Our interest rates for small loans are competitive.
Loans may be taken out for any productive or provident purpose. This includes purchase of household goods, clothes, cars, Christmas presents, holidays, etc. or the repayment of high interest credit or store card debt. Annual items such as car tax, insurance, heating oil, electricity etc. are permissible but we would expect them to be repaid by the time they are again due.
Unsecured loans are repayable within a 5 year period and secured loans within a 10 year period.
The amount a member can borrow is related to strict lending criteria and their ability to make the required repayments. Evidence of income and expenditure is required to enable the loan to be fully assessed.
Members may not withdraw savings being used as security for a loan.
Loan applications are made on three separate forms:
- The Confidential Loan Application.
- The Income and Expenditure Form.
- Data Monitoring Form.
These forms, along with supporting documentation, will form the basis of the decision to approve or reject the loan application.
Please allow sufficient time for the loan application to be considered. In genuine emergency situations for someone in need, an accelerated application may be possible. We undertake to give a decision on a loan application within 5 working days of the submission of all required information.
Once a loan application is approved a formal Loan Agreement will be prepared for the members signature. This agreement will detail the loan and repayment schedule.
The interest payable on a loan will be between 1% and 2% per month on the amount of the loan outstanding at the time. This translates to an APR of between 12.67 % and 26.8% per year, which compares very favourably with the interest rates chrged by doorstep lenders such as Provident, Greenwoods etc. who usually charge 185% APR.
The loan may be paid back early without any penalty or extra charges.
The credit union may recover any sums due from a member or their executors or administrators. The credit union has a lien on the shares of a member for any debt the member has or has guaranteed. See insurance section for details of loan insurance which may mitigate this on the death of a member.
If a member defaults on the agreed loan repayments the full amount of the loam may become immediately repayable togehter with any costs of recovery.