Family Budgeting Loans are for new and existing members who are looking for a loan that will help with their family’s cost or with one-off expenses. This is a loan that will help families with a low surplus income to get access to loans and will also help with budgeting and saving.
It 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 dedicated Family Budgeting Credit Union savings account; and secondly, by making 5 x weekly (or 2 x 4-weekly) payments into that dedicated account.
After successfully completing this period of qualification, applicants can then apply for the new Family Budgeting Loan and where this application is successful, the loan repayments are then taken directly from future Child Benefit payments. In addition, if their application is successful, they will be required to make payments into their savings of at least £2 if they have 1 dependent child, £3 for 2 children, and £4 for 3 or more children. These payments are in addition to the loan repayments but will be made available at the end of the loan term.
The amount that members can apply for will be determined by 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.
Family Budgeting Loan – Weekly Repayments
|3 or more||£600||£25.50||£21.00||£18.00|
Family Budgeting Loan – 4-Weekly-Repayments
|3 or more||£600||£102.00||£84.00||£72.00|
Let’s now 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.
- 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.
Loan Advance Payment
We can pay your loan advance by Faster Payments Transfer to your Bank Account or by transfer to your City of Plymouth Credit Union Savings Account. You can then use your Savings Account to top up your Prepaid Debit Card if you have one.
Apply for Loan
To apply for or top up a Family Budgeting Loan, we recommend using our Nivo smartphone app for Android and iPhone devices. You can find out more about it by clicking here. It’s much quicker and more convenient than paper and helps considerably if you cannot get to a Service Point. If you haven’t already installed it, click on the button below and follow the instructions. It’s very easy to use.
When uploading bank statements, can you ensure that you upload a pdf file from your bank rather than using your camera to photograph bank statement pages. This will prevent problems with readability and processing your application.
The application process for a Family Budgeting Loan is as follows:
- Fill in a short Preliminary Application Form either using Nivo or by printing a form and completing it. If on a printed form, send it 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 either using Nivo or by post. You will be required to complete the bits that are missing. If using a paper form you will need to post it to us or drop it in to a Service Point.
If using paper forms, please don’t send them as an email attachment as we need original signatures on the form and, as email is an insecure communication medium and many of the forms contain sensitive information, could lead to data protection issues.
Family Budgeting Loan Terms and Conditions
- Applicants must be at least 18 years old.
- Applications will be considered from both new and existing members. New members must complete a Membership Application Form.
- Applicants must arrange for Child Benefit to be paid to the credit union into a locked account which is not accessible directly by the member. Loans will only be granted after receipt of the agreed number of payments.
- The loan application process will include a telephone interview carried out by a Family Loan officer following the completion of a Preliminary Application form. If successful, you will be asked to complete a full Loan Application form.
- In addition to the agreed loan repayment, you will be required to make savings of at least £2 if you have 1 dependent child, £3 for 2 children, and £4 for 3 or more children. Payments will be made from the locked account. Any balance left after deduction of the loan payment and the savings payment may be withdrawn by the member.
- The interest rate for Family Budgeting Loans is 3% flat per month or 36% flat per annum calculated daily (42.58% APR).
- The minimum lending term shall be 26 weeks or 7 4-weekly payments.
- The maximum lending term shall be 39 weeks or 10 4-weekly payments.
- Loans may be topped up ONCE provided you have reduced the loan balance to £100 for 1 child, £200 for 2 children or £300 for 3 or more children.
- The minimum loan advance shall be £200.
- The maximum loan advance shall be:
- £300 for one dependent child
- £500 for two dependent children
- £700 for three or more dependent children.
- You must supply a telephone number on the Loan Application form. We cannot grant a loan without a telephone number.
- A Loan Agreement must be completed and signed both by the applicant and the credit union before any loan advances are paid.
- 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 and expenditure such as (but not limited to) bank statements for the previous 3 months. We may ask for further proof if considered necessary. Please note that we cannot accept Bank Statements supplied as spreadsheets, they must be on paper or as .pdf files. If sending documents containing sensitive attachments by email, please bear in mind that this is an insecure communication medium and you do so at your own risk. As an alternative, documents can be sent using our smartphone Nivo app.
- You understand that we may 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 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 or using our Nivo app. You must inform us immediately of any incorrect item on your statement.
- 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.