Payroll Loans are offered to members who are part of a payroll deduction scheme and are offered at a special flat rate of 1% per month (12.68% APR). The amount you can borrow is determined by several factors, including how long you've been a member of the credit union, how many previous loan you've had, and how much you can afford to repay. The maximum you can borrow with a Payroll Loan is £10,000 over a period not exceeding 3 years.
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. Adjust the sliders to see the results.
The interest rate for Payroll Loans is 1% per month/12% flat per annum (12.68% APR) calculated daily. The maximum amount that you can borrow is dependent on several different factors which will be considered when you apply. First, you must have been saving with the credit union for a minimum of 13 weeks, during which time you must have shown a regular saving pattern. After that, the maximum you can borrow is determined as:
- for your first loan, twice your savings total to a maximum of £3,000 over a period not exceeding 12 months
- for second loans, up to 3 times your savings to a maximum of £10,000 over a period not exceeding 2 years
- for third and subsequent loans, up to 4 times your savings to a maximum of £10,000 over a period not exceeding 3 years.
We will also take into account your existing regular payment pattern and will examine your Loan Application income and outgoings to ensure you can afford to make the agreed repayments and may ask you for proof of income. 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 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.
This type of loan can also be "topped up" to provide a further advance to a maximum of the original loan after the loan has been at least 50% repaid, and subject of course to the original loan being repaid according to its terms. This, however, can only be done once, after which the loan will need to be fully repaid before any further loan will be granted.
To apply for or top up a Payroll 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 all Payroll Deduction members with savings
- Must be over 18 years old
- Loan amount dependent on savings
- 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 3 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 Payroll Loans is 1% flat per month or 12% flat per annum calculated daily (12.68% 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.