Loans and SuchHow do I apply for a loan, and how long will it take?Once you have been a saving member for at least 13 weeks you will be eligible to apply for a loan if you need one. The application and approval process in simple cases will take several days. This may be longer if The Loans Officer or Credit Committee request more information. If the loan is large or complicated by unusual factors, If the Credit Committee will be called to evaluate the application, there will be a delay whilst the Committee members are convened. All Loan Applications must be accompanied by a loans application form available from our office or a collection point, or by download. If approved, you will be asked to sign a loan agreement before we make payment to you. Download Loan Application Form. Download the SCU Loans Policy Back To Menu What do I need to send to you?You need to send us a completed application form. Make sure this is signed and dated. Include with it 3 recent wage slips or benefit award letters and 3 recent bank statements. Why do you want to see all this?The Credit Union is a local co-operative. The money it loans out belongs to your friends and colleagues and fellow members and we must loan it out responsibly. For this reason, we need to check that you are able to repay any amount we lend to you and this is why we ask for all this information. Please note that all information provided to the Credit Union remains strictly confidential. Back To Menu When do I get my money?Once your loan has been approved we will send out a loan agreement for you to sign and return to us. You will receive your money within 3 working days of us receiving the signed agreement. If you can come to the Solent Credit Union Office at Dolphin House during opening times, to sign the agreement, you can receive the cheque straight away. Do you perform a credit check?Yes. We reserve the right to perform a credit search on loan applications. This is to help ensure we are lending sensibly and protecting the interests of all members who save with us. The Credit Check will be used to verify the information you provide on your application form. A decision on your application will not be made by credit check alone. Your personal circumstances will be taken into account. Back To Menu
Why is a Credit Union Loan better for me?A Credit Union won’t exclude you just because a computer says so. We try not to offer loans you can’t afford. We will not try to lend you more than you need. We can offer loans at lower amounts than the banks. Loans usually come with free life insurance. (conditions apply) There are no arrangement fees or early repayment penalties and the maximum interest rates are set by law. This all means that you will only get affordable loans from us. If you have been using doorstep lenders, then a credit union loan is less expensive by a huge amount. Can be applied for by any member over the age of 18 years. If you have been a member for 13 weeks and have saved regularly. Back To Menu Who can get a loan?Loans are available for Members who have been saving regularly for 13 weeks, or three months. Please request full details and a Loan Application Form from the Solent Office. Nobody else will be considered. • Loans can be applied for by any member, once they have been saving regularly for three months You must be at least 18 years old. • The loans are very flexible - you can borrow small or large amounts over different periods • Our interest rate is fixed - so if bank interest rates change, your repayments will remain the same • Interest is charged only on the amount still to be repaid - not on the full amount of the loan • There are no arrangement, setup or hidden fees • You may be able to pay the loan off early, in which case there would be no charges • Loans can be for a variety of purposes, such as holidays, car repairs, new appliances or to spread the cost of Christmas • The interest rate is just 1% or 2% per month (12.68% APR—26.8% APR) depending on your circumstances, which are very competitive rates, especially for smaller loans • Loans are automatically covered by life insurance if you die under the age of 65 • Loans covered by shares are automatically approved. How much can I borrow? The minimum loan is currently £50, the maximum loan £5,000.
First Loan Loans are available to you if you have been a regularly saving member for more than three or months and less than one year. The maximum first loan you can apply for is the value of your shares if (the amount you have saved) plus £500 repayable over one year, or £500 if your share balance is less that £200. Subsequent Loans The maximum subsequent loan you can apply for is three times the value of your shares, (the amount you have saved,) or £500 whichever is greater. Loans can be paid back in periods up to three years. You can always borrow up to the level of your savings. In these situations the loan can be agreed immediately Back To Menu
Foreign Nationals and people in the UK on a visa Loans are only granted to foreign nationals, asylum seekers, or people here on a visa, if they have at least one years right to remain in the country. Loans will only ever be granted to a period within the time that the individual has to stay in the UK. Can I take out my savings while I have a loanWhen a loan is granted, the member’s current savings will be taken into account as security. None of this part of their savings can be withdrawn until the loan has pen paid down to below that level. Normally, unless the member is not borrowing an amount greater than his/her savings, this amount will be all of the member’s savings with the Solent Credit Union at the time of taking up the loan. Advantages of a loan from Solent Credit Union• Loans can be applied for by any member, once they have been saving regularly for three months • The maximum loans are very flexible - you can borrow small or large amounts over different periods • Our interest rate is fixed - so if bank interest rates change, your repayments will remain the same • Interest is charged only on the amount still to be repaid - not on the full amount of the loan • There are no arrangement, setup or other hidden fees. • You may be able to pay the loan off early, in which case there would be no charges • Loans can be for a variety of purposes, such as holidays, car repairs, new appliances or to spread the cost of Christmas • The interest rate is just 1% or 2% per month (12.68% APR—26.8% APR) depending on your circumstances, which are very competitive rates, especially for smaller loans • Loans are automatically covered by life insurance if you die under the age of 65 • Loans covered by shares are automatically approved. The Credit Union aims to support you and at the same time protect its members’ money and we do that by assessing each application individually. It is not in our interests or yours to lend you money you can’t repay. Back To Menu What is the interest rate on Loans?Interest on Credit Union loans is limited by law, so you will never pay more than 2% per month (26.8% APR) and many loans may be lower. Check out our current loan deals for up to date information. You may see lower APRs advertised but we recommend that you check whether the advertised rate applies to the loan amount you actually need. Often, the lowest advertised rates from major financial institutions only apply to the higher value loans and are quoted as a “typical” rate, which means that may not be the rate that you are offered.
How do I repay my loan?In the same way you make payments to your savings account. This might be by Standing Order direct from your bank or by paying in at our Southampton High Street Office or one of our collection points. Can I pay off my loan early?Yes. If you wish to repay your total outstanding loan early you can do so in one payment. Just contact the Credit Union office to check the final payment required. There are no early repayment charges for this. Back To Menu Can I pay extra amounts off my loan if and when I have the money?If you have extra money you can pay this into your savings account at any time. When the balance of your savings account is enough to pay off the balance of your loan, you can do this. Can I top up my loan?If you wish to borrow more money before your loan has been paid back, you may do so if: At least one third of your loan has been paid back And You have adequate savings to enable the level of lending that you want. And You fulfil the other usual requirements for a loan. (See “Who can get a loan?”).
Note: If you have been a slow payer or are in default, a top up may not be approved. Is there Loan insurance?We provide you with FREE life insurance for the amount of your outstanding loan. As with most insurance some exemptions apply; for example you may not be covered if you die of a pre-existing medical condition within 6 months of taking out the loan This insurance is held by CUNA Mutual. This is a Mutual Insurance Society, in 1935, founded and owned by credit union to provide insurance for Credit Unions and their members. Back To Menu What if I have difficulty repaying?If you find yourself in difficulty, please get in touch with our office as soon as possible so that we can help you. Our office is at:
134-135, High Street, Southampton, SO14 2BR or telephone 023 8178 8375. By only making affordable loans, we hope that you won’t get into serious difficulty. We try not to lend to people if the loan repayments will make life very difficult for them. We also know that people’s situation can change rapidly. If you are in difficulty, letting people know is the first step to reducing the stress and seeing a way forward. We also work with local debt advisers who may be able to help you. Look at our Debt advice page for places that can help you. The main thing is to get in touch with us.
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