Family Budgeting Loan

Family Budgeting Loans are for new and existing members who are looking for a loan for their family where repayments are taken directly from Child Benefit payments. This is not an instant loan, and applicants must show that they can afford to make repayments by first, arranging for HMRC to pay their Child Benefit into their special Family Budgeting Credit Union savings account and second, making 5 weekly or 2 4-weekly payments into that account. After successfully completing this period of qualification, they can apply for a loan.

The amount that can be applied for is dependent on the number of dependent children in the family. The tables below illustrate the amounts that can be borrowed and the corresponding loan repayments and periods. In addition, you will be required to make payments into your savings of at least £2 if you have 1 dependent child, £3 for 2 children, and £4 for 3 or more children.

Family Budgeting Loan - Weekly Repayments

No of
Weekly Repayments
(26 Repayments)
Weekly Repayments
(32 Repayments)
Weekly Repayments
(39 Repayments)
£300 (max)£12.75£10.50£9.00
£500 (max)£21.25£17.50£15.00
3 or more£600£25.50£21.00£18.00
£700 (max)£29.75£24.50£21.00

Family Budgeting Loan - 4-Weekly Repayments

No of
4-Weekly Repayments
(7 Repayments)
4-Weekly Repayments
(8 Repayments)
4-Weekly Repayments
(10 Repayments)
£300 (max)£51.00£42.00£36.00
£500 (max)£85.00£70.00£60.00
3 or more£600£102.00£84.00£72.00
£700 (max)£119.00£98.00£84.00

Loan Details

Let’s take a look at the Family Budgeting Loan in more detail to see whether you’re eligible and whether it meets your needs. The full Terms and Conditions are shown below, but here’s a brief run-down.

  • Family Budgeting Loans are available to both new and existing members. New members must apply to join the credit union first using this form. (For an overview of credit union membership, see this page.)
  • Family Budgeting Loans are to help with meeting the needs of families.
  • You will need to tell us your Child Benefit number and make arrangements for the HMRC to pay your Child Benefit to the credit union.
  • Loan repayments are made from your Child Benefit payments. Loan repayments and savings (see below) are taken from the payments into this account.
  • You cannot access this account directly, but if, after taking the loan repayments and savings, there is anything left over, you can withdraw this in the usual way.
  • They are not instant loans as there is a qualifying period required to ensure you can afford the repayments.
  • Depending on the number of dependent children you have you can borrow a maximum of £700 for between 26 and 39 weeks. See the tables above for further details.
  • You can make payments either weekly or 4-weekly.
  • You can top up a loan ONCE provided you have reduced the loan balance to £100 for 1 child, £200 for 2 children or £300 for 3 or more children.
  • We will take into account your previous payment history.
  • When filling in the form, it’s important you are truthful. Any discrepancies found will necessarily affect whether you will be granted a loan.

We can pay your loan advance by Faster Payments Transfer (our preferred method), or Cash. In exceptional circumstances, we can pay it by cheque for paying into your personal bank account or by cheque for cashing at a Post Office (a charge will apply for this service).

The application process for a Family Budgeting Loan is as follows:

  • Fill in a short Preliminary Application Form by clicking on the button below, printing out the blank form and completing it. Then send the form to us by post or drop it in to a Service Point. If you cannot print out the form, you can always get one from a Service Point.
  • One of our team will contact you to set up an appointment for a telephone interview. The interview itself takes between 15 and 30 minutes, during which we will be able to advise you if you qualify for a loan and how much you can apply for given your circumstances.
  • If successful, we will send you a full Loan Application form pre-filled with the information we have gathered to date. You will be required to complete the bits that are missing. Then send the form to us by post or drop it in to a Service Point.

We cannot accept Loan Applications as attachments to emails. They must be original, paper forms.

Why not try our new smartphone app to apply for a loan online? Full details of this exciting new service can be found here. Or simply press this link and follow the instructions.


  • Open to both new and existing members
  • No credit check required
  • Highly competitive interest rate
  • Must be over 18 years old
  • No arrangement fee
  • No penalty for early settlement
  • Overpayments welcome
  • Weekly or 4-weekly repayments
  • Covered by Life Insurance, subject to Terms and Conditions
  • We will normally process loan applications within 5 working days (allow 10 working days in run-up to Christmas), however larger loans may take longer.
Terms and Conditions