Affordable loans with Sheffield Credit Union
Bronze Loans Scheme
We have a Bronze Loan Scheme for people on low income/benefits at APR 26.8% where savings are not taken into account. Please contact the office for more information.
Credit Union Loans
Credit Union loans represent very good value for money. SCU charges 1% when you have saved regularly for either 12 weeks or for 3 months (APR 12.68%).
Also remember that
-
Loans are covered by loan protection
-
There are no penalties for early repayment
The following table shows how affordable our loans are at 1% per month.
|
Loan amount |
Period |
Monthly Repayments |
Total Interest To Pay |
|
£100.00 |
6 months |
£17.26 |
£3.53 |
|
£100.00 |
12 months |
£8.89 |
£6.62 |
|
£250.00 |
6 months |
£43.14 |
£8.82 |
|
£250.00 |
12 months |
£22.22 |
£16.54 |
|
£500.00 |
12 months |
£44.43 |
£33.09 |
|
£1000.00 |
12 months |
£88.85 |
£66.18 |
|
£2000.00 |
24 months |
£94.15 |
£259.42 |
General information
The Credit Union wants to help people by giving affordable loans. We do not encourage members to take out loans they cannot afford – this is in the individual's and the Credit Union’s best interests. We also encourage members to keep saving as they borrow. The obvious advantage of this is that your savings continue to grow but it also increases the amount you can borrow against for future loans.
If you are over 18 and have saved regularly, £1 a week, or £4 a month, for 12 weeks (3 months) without drawing savings, you can apply for a loan. Loans are based on the amount you have saved and/or your ability to repay the loan. Loans can be repaid weekly or monthly.
All loan applications will be checked by the credit committee who will then decide if a loan can be granted.
First loan
Because we are a co-operative we have a duty to protect all our members' money. Therefore we limit first loans to a maximum of double a member’s savings. So, for example, if you had saved £200 you could borrow up to £400. These loans can be applied for using the simple Short Loan Application Form. The maximum first loan is £1000 above savings.
Second and subsequent loans
Once you have repaid 2/3rds on your first loan you can apply for a loan based on 3x your savings. There are two types of loans available. Bear in mind that if the loan is topped up before 2/3rds of the loan is repaid then it will remain a 1st loan until 2/3rds of the loan has been repaid.
- Loans related to your savings
For second and subsequent loans you can apply for a maximum loan of up to 3 times your savings. So if you have £250 in shares you could borrow up to £750. The maximum you can borrow with this type of loan is £1000 plus the value of your savings.
These loans can be applied for using the simple Short Loan Application Form.
- Loans related to your ability to repay
If you need to borrow an amount greater than 3 times your savings or more than £1000 above your savings you will need to fill in a Full Loan Application Form, an Income and Expenditure Form and send in proof of your income and expenditure. These forms ask for more detailed information. The maximum you can borrow is £5000 above your savings.
We always encourage members to continue saving as they borrow. However if you need to pay off some of your loan from your savings (subject to the terms of the loan) you can apply to do so on a Share to Loan Transfer form.