Do you need a loan, but have no savings or you're not a member of the credit union? Then a Wise Finance Loan may be what you're looking for. As you might expect with this type of loan, the amounts available are lower than our other loan products and the interest rates are higher to reflect the increased administration costs and risks. Take a look at our loan calculator for an illustration of what you could borrow and how much your repayments would be.
A Wise Finance Loan is often referred to as "capacity-based" in that the amount we lend is based on a person's capacity to make the necessary repayments. So we will look carefully at your loan application to ensure you have sufficient income, after paying your expenses, to make the repayments and may ask you for proof of income. This is in the best interests of both you and us in that we don't want you to fall into debt, and we don't want to lose the savings deposited by our members. We reserve the right to apply to a Credit Checking agency for a credit reference, but please don't assume that you will be refused just because you have a poor credit history, that is not necessarily the case. We also encourage people taking out this type of loan to top up their loan repayments by a minimum of 10% in order to build up their savings with the credit union. This will provide them with a pot of money they can fall back on in the future, perhaps to finance a bigger loan, as time goes on.
Offering up to £500 at an interest rate of 3%/month (42.58% APR), a Wise Finance Loan is highly competitive - a similar loan with the Provident, for example, has an APR interest rate of over 1,500% while the Sunny rate is over 1,200%.
Non-members will also be required to join the credit union and become members and we'll use the information you supply in your Loan Application to carry out an on-line identity check. Known as "Know Your Customer" or KYC checks, this is a requirement placed on all financial institutions, including banks, building societies and, of course, credit unions. For full details, please see the Adult Membership page.
We can pay your loan advance by cheque into your personal bank account, by cheque for cashing at a branch of the Co-operative Bank, by cheque for cashing at a Post Office with which we have an arrangement (a charge will apply), by Faster Payment directly into your bank account or by loading the value onto a Prepaid Debit Card.
To apply for a WISE Finance 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.
- Open to non-members - you will need to join the credit union
- Also open to members with insufficient savings
- Must be over 18 years old
- Loan amount dependent on ability to make repayments
- No arrangement fee
- No penalty for early settlement
- Overpayments welcome
- Weekly, fortnightly or monthly repayments
- Covered by Life Insurance
Terms and Conditions
- Applicants must be at least 18 years old.
- The credit union reserves the right to refuse any application and to refuse a loan for certain purposes.
- As part of the approval process, we may require proof of income such as (but not limited to) bank statements for the previous 2 months.
- 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 total amount outstanding may immediately become repayable (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.
- In signing the Loan Agreement you agree that, should repayments on the loan fall into arrears, all current and future savings in all share accounts deposited with the credit union up to the value of the outstanding loan may be used to offset the debt.
- I agree that, if I default on repayments, information about my loan may be passed onto the Department for Work and Pensions for their consideration of deductions from the benefits that I am or will be 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 WISE Finance Loans is 3% flat per month or 36% flat per annum calculated daily (42.58% APR).
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.