So you're a member of the credit union and you've been prudent and have lots of money saved. Now you want to buy something which will require you to draw out all or part of your savings. Yes, you can do that, but think of what you will lose. Your nest-egg will get smaller. And worse of all, you'll lose the benefits of the free Life Insurance we offer (assuming you qualify, of course!). Why not take out a loan for the amount you would have drawn out? That way, you keep your nest-egg intact and get a loan at our very lowest rate of interest, 5% flat a year (5.12% APR). Your Life Insurance will still cover the full amount of your savings, and will even ensure your loan is paid off should the worst happen.
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.
A Savings Secured Loan is one where the amount advanced is 100% covered by savings. As this greatly decreases the chance of the loan not being repaid and reduces the administration costs required to set up the loan, we are able to offer this loan at our lowest-ever rate of 0.42% per month/5% flat per annum (5.12% APR). The application process is quick and easy and no credit checking is required. Savings equivalent to the amount of the loan will be put into a "pledged savings" account until the loan is repaid so will not be available for withdrawal but do attract dividend payments alongside your other savings. You can, of course, withdraw any savings in excess of your pledged savings at any time.
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 an Savings 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.
- Total amount of loan covered by "pledged" savings
- Our lowest interest rate
- Quick application process
- Must be over 18 years old
- 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.
- You understand that savings equal to the value of the loan will be transferred to a Savings Secured Pledge Share Account. These savings are not withdrawable until the loan and the loan interest is repaid in full.
- You agree that should you fail to make any repayments due under this agreement or become insolvent, pledged shares to the outstanding balance of the loan will be used to repay the loan.
- 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 Savings Secured Loans is 0.417% flat per month or 5% flat per annum calculated daily (5.12% 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.