Loan Guidelines

1. Loans shall only be available to members aged 18 or over. Members aged 75 years and over will be eligible for secure loans only.
2. Loan allocations are based on a share to loan ratio, length of membership and on ability to repay.
3. Proof of identity, current address, and a statement of income and expenditure will be required.
4. The Loan Officer or Credit Committee will consider all applications. All applications are subject to a Register of Insolvancies check and Credit Reference Agency check.
5. Loan applications may take up to seven days for a decision.
6. Loans should normally be repaid within three years. If the loan is for an annual event, i.e. a holiday or car insurance we would expect it to be repaid within 12 months.

7. Loan Policy Table (applicable from Tuesday 19/05/2015)

   1st	up to £500 over Savings Balance	Member must have saved for a minimum of 8 weeks in a row with no withdrawals in between
   2nd	up to £1000 over Savings Balance	Member must have saved for a minimum of 20 weeks in a row with no withdrawals in between or had 1st Loan Policy.
   3rd	up to £2000 over Savings Balance	must have had 2nd loan policy and continued to save*regularly
   4th	up to £3000 over Savings Balance	must have had 3rd loan policy and continued to save* regularly
   5th	up to £7500 over Savings Balance	must have had 4th loan policy and continued to save* regularly

   Minimum loan application that will be considered is £500

   All Loan advances are based on ability to repay and Loan Applications should be accompanied by Proof of Income & Expenditure for the past 2 months, preferably by way of Bank Statements. All applications will be subject to a credit check and will be put before the credit committee for consideration. The credit committee’s decision is final.

   Secure Loans - Any member can borrow up to 90% of their savings balance at any time (subject to the minimum loan requirements) without the loan application going before the credit committee or being credit checked. Secure Loans do not count towards progression in the Loan Policy Table. The member must complete loan application and provide relevant identification at least 30 minutes before close of business at lunchtime or end of the day

   In order to advance in the Loan Policy Table the member must continue to save and repay the loan in full to the original terms without receiving any arrears letters or using their savings to repay any part of the loan. Failure to adhere to this will mean that the member’s application will be considered at the previous loan policy or rejected.

   *Continued to save regularly means that the member’s savings balance is increasing each week and not being reduced i.e. saving £2 each week for 20 weeks and then withdrawing £50 is not saving regularly or putting in a lump sum at any point is not saving regularly.

   Top Up Loans – will only be considered from 3^rd Loan Policy onwards when original loan is 50% repaid, the maximum top up will be limited to the original loan advance and will be charged at the rate of the original loan advance.

   All loans must be fully repaid before the members 80^th birthday, unless otherwise agreed by the credit committee beforehand.

   .
8. No Credit Union Officer can act as guarantor for a loan.
9. The maximum shares that can be transferred by the member to service loan repayments will be equal to two months repayments.
10. Loan interest rates start from 10.5% p.a on a decreasing balance, for more details please consult our loan calculator.
11. Failure to adhere to all of the repayment terms of the loan will result in action being taken against defaulters including all expenses and legal and court costs where appropriate.