Credit Union Info

Borrowing

How much will it cost?

Truth-in-lending, with no hidden cost, is the policy of the Credit Union movement. With a Credit Union loan the maximum you will pay is 1% per month on the reducing balance. This equates to 12.7% APR. Interest is charged only on the outstanding loan balance, if you repay a loan in a shorter time the cost is even less.

This rate is charged on all loans, however small, we won't charge you more for borrowing less. There are no arrangement or set-up fees and there is no penalty should you pay the loan off early. Please compare the total interest you would be charged between the Credit Union and another lender. The Credit Union could save you money.

How much can I borrow?

The amount a member may apply to borrow is based on how regularly they pay into the Credit Union and on their ability to repay. Please contact Bulwell Credit Union for a quote and details of the lending policy.

Applying for a loan

All loan applications should be submitted on the loan Application form. This application is considered by the Credit Committee, who meet weekly. Each application is treated in confidence and on its own merits. If the loan is approved, a Loan Agreement form is signed by the member. Once the Loan Agreement has been signed the agreed amount is issued to the member.

Credit Unions have a major role to play in showing its members how to make the best of all their resources. When you borrow from a Credit Union you do so as a member-owner and not just as a customer paying for goods or a service. Credit Union loans are available to members to help when a need exists and not to make a profit at the borrower's expense.

This means:

• Helping members to save
• Helping members to keep their debt under control
• Offering financial advice
• Making available when needed, low cost credit
• Offering insurance protection on savings and loans
• Credit Union loans puts power of cash into the members hands
• A Credit Union gives freedom of choice