Sheffield Credit Union
Affordable loans with Sheffield Credit Union
Credit union loans represent very good value for money. By law we are not allowed to charge more than 1% per month on the outstanding balance of loans (APR 12.68%).
Also remember that
-
Loans are covered by life insurance at no extra cost to members
-
There are no penalties for early repayment
The following table shows how affordable our loans are.
|
Loan amount |
Period |
Repayments per week |
Total amount to repay |
|
£50.00 |
26 weeks |
£1.98 |
£51.54 |
|
£100.00 |
26 weeks |
£3.97 |
£103.14 |
|
£100.00 |
52 weeks |
£2.04 |
£106.09 |
|
£200.00 |
26 weeks |
£7.94 |
£206.29 |
|
£200.00 |
52 weeks |
£4.08 |
£212.32 |
|
£500.00 |
52 weeks |
£10.21 |
£530.80 |
|
£1000.00 |
52 weeks |
£20.42 |
£1061.60 |
Click here to try out our Loan Calculator and see how much your loan might cost !
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 for 13 weeks / 3 months 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.
Second and subsequent loans
Once you have successfully repaid your first loan you can apply for another. There are two types of loans available.
- 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 over £1000 you will need to fill in a Full Loan Application Form and an
Income and Expenditure form. 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.