Fully Secured Loans are for existing members who have sufficient shares to cover the whole of their loan, plus a bit (10%) to cover interest after it’s been added. Why don’t they just draw their shares out without bothering with a loan? The reason is that they are getting a loan at a very low rate of interest, and getting free, valuable, Life Insurance as well, subject of course to Terms and Conditions. Their savings are still there, providing a nest egg they can fall back on as well. Interest rates are very low, for loans over £1,000, it’s only 5% flat per annum (5.12% APR), while loans below £1,000 are charged at 12% per annum (12.68% APR).
Just so you can get some idea of the amount you can borrow and how much it will cost in terms of monthly repayments and interest costs, we have included a calculator below. Pull the sliders around to see an illustration of what the loan could cost you, but bear in mind that there are minimum payment constraints which may apply.
Terms and Conditions
- Applicants must be at least 18 years old.
- All loan applications must be made in writing on the appropriate Loan Application form and passed to a Service Point or sent to the main office (14 Cumberland Street, Devonport, Plymouth, PL1 4DX).
- You must supply a contact email or telephone number on the Loan Application form.
- A Loan Agreement must be completed and signed both by the applicant and the credit union before any loan advances are paid.
- You agree that an amount of shares equivalent to 110% of the loan advance will be transferred a Pledged Savings account.
- You understand that pledged shares may be released for withdrawal on a quarterly basis at the end of March, June, September and December. However, the pledged shares must not fall below 110% of the outstanding balance of the loan during this process.
- The credit union reserves the right to refuse any application and to refuse a loan for certain purposes.
- You agree that we contact a Credit Checking agency to check your credit worthiness as part of the loan application process.
- In the event that you default on your loan, details of such default or defaults may be passed to credit reference agencies, debt recovery agencies, and the courts. In such circumstances we may disclose details of your account and any other matters relating to your account to any credit reference agency.
- You agree that should you fail to make any repayments due under this agreement or become insolvent, the Pledged Shares may be used to fully redeem the loan immediately (unless agreement on payment mechanisms can be agreed between us).
- You also agree that we will pass on to you any costs incurred in collection of overdue payments including the costs associated with any legal action we may take.
- I agree that if I default on repayments, information about my loan may be passed on to the Department for Work and Pensions for their consideration of deductions from the benefits that I am or will become entitled to.
- We may terminate the Loan Agreement and demand immediate repayment of all sums due if:-
- You fail to keep any part of the Loan Agreement
- You have given us false or inaccurate information in connection with the Loan Agreement.
- Statements are available on request. We will provide statements either by post, in an office or at a service point. You must inform us immediately of any incorrect item on your statement.
- The interest rate for Fully Secured Loans for loans of less than £1,000 is 1% flat per month or 12% flat per annum calculated daily (12.68% APR).
- The interest rate for Fully Secured Loans for loans over £1,000 is 0.42% flat per month or 5% flat per annum calculated daily (5.12% APR).
- As detailed in full on the Life Insurance page, loans for members over 70 years of age are not covered by life insurance.
- All members must declare any pre-existing medical conditions when applying for a loan.
Above all, bear in mind that the credit union is here to help. If you experience any financial difficulties, please get in touch with us as soon as possible and we will do our best to help.