Fully Secured Loan

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.

Let’s look at the details for a Fully Secured Loan to see whether it will meet your requirements. The full Terms and Conditions are shown below, but here’s a brief run-down.

Fully Secured Loans are for members who have sufficient shares to cover 110% of the loan advance they are seeking. This way they keep their capital intact and also benefit from valuable Life Insurance on both their loan and their savings, subject of course to the Terms and Conditions shown on that page, especially the age limitations.
As the loan is fully secured, the Loan Application process is much simpler than for the other loan types. In fact, the Loan Application firm is just one page long!
A lump-sum amount of shares equivalent to 110% of the loan advance will be used to secure a loan and will be be set aside in a Pledged Savings account. This can be reviewed on a quarterly basis with the objective of releasing some of the pledged shares, provided that the 110% ratio of shares to outstanding loan balance is maintained.
Members must have a good history of making regular loan repayments with minimal arrears.
You can borrow between £500 and £22,5000 with a Fully Secured Loan.
You can top up to a maximum of your initial loan amount ONCE provided you have repaid at least half of it and you’ve been making your payments on time with no arrears.
You can fully repay the loan from shares ONCE. This will require authorisation by the person nominated to supervise the loan.
We may carry out a Credit Check, although a poor credit score will not necessarily mean you won’t be granted a loan.
We will take into account your previous payment history if you have had loans with us in the past.
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 (we need at least 3 days notice for cash payments over £1,000). 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).

To apply for or top up a Fully Secured Loan, click the button below, print the form and fill it in as fully as possible. Alternatively, forms are available at any of our Service Points where you can also ask for help in filling in the forms.

Open to existing and new members
Loan fully guaranteed by shares
Our lowest interest rates – just 5% flat (5.12% APR) for loans over £1,000
Quick application process
Must be over 18 years old
No arrangement fee
No penalty for early settlement
Overpayments welcome
Weekly, fortnightly, 4-weekly or monthly 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

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.

Fully Secured Loan

Loan Details

Features

Terms and Conditions