Wirral Credit Union can only provide loans to its' members. If you would like to become a member click here.

When Can I get a loan?

If saving via an established payroll deduction scheme then members are eligible for a loan of up to 3 times the amount of their savings and can apply for a loan after one regular payment has been received.

If saving via standing order then members need to make 3 consecutive monthly payments into their savings account. After this time members can then apply for a loan of 1.5 times their savings. When this first loan has been cleared and the member has shown consistency with payments, subsequent loans will be available at 2 times the value of their savings.

How do I apply for a loan or withdrawal of my savings?

Where eligible members can apply for a loan or withdrawal by contacting any of the Credit Union branches Monday to Wednesday and a cheque will be produced ready for collection on the Thursday of that same week. Cheques can also be posted to your home address if more convenient.

NB. Withdrawal of savings can only be made to the level of any outstanding loan balance.
NB. You must be at least 18 years old to apply for a loan.

How much interest will I pay?

The Credit Union offers low cost loans to its members and interest is based on a members personal circumstances. The standard rate of interest is between 12.68%APR and 26.8%APR. If a loan is paid off earlier than the agreed term there are no early repayment fees.

The tables below show an example of the total amount to be repaid on loan amounts over varying time periods.

Example 1: Loan interest calculated at 12.68%APR

Period 6 Months 12 Months 24 Months 36 Months
Loan Amount Total Payable Total Payable Total Payable Total Payable
£100 £103.53 £106.62 £112.98 £119.57
£500 £517.64 £533.09 £564.88 £597.85
£1000 £1035.29 £1066.18 £1129.76 £1195.70

Example 2: Loan interest calculated at 26.8%APR:

Period 6 Months 12 Months 24 Months 36 Months
Loan Amount Total Payable Total Payable Total Payable Total Payable
£100 £107.12 £113.47 £126.88 £141.20
£500 £535.38 £567.35 £634.41 £706.17
£1000 £1071.13 £1134.71 £1268.89 £1412.34

 

Monthly loan repayments have to be equal to any loan repayment due plus a minimum of £10 per month savings. This ensures that when the loan is repaid a member has an increased savings balance in their account compared to their savings balance at the time the loan was taken:

E.g. : Member has £50 in savings and wants to borrow £100:

Loan Amount £100
Loan Period 6 months
Total Loan Repayable £103.53 (12.68%APR)
Monthly Loan Repayment £17.26
+ £10 per month saving contribution 6 monthly payments of £27.26 = £163.56
£103.53 to pay back loan £60 extra into savings
Savings balance at end of 6 month period £110

 

Can I change my monthly payments?

The amount you save through your regular monthly contributions can be changed by simply contacting any of the Credit Union branches.

- Members paying via payroll deduction:

  • Payroll deduction changes are requested by the Credit Union on behalf of the member. We will contact your employers’ payroll department directly when you instruct us to do so.

- Members paying via standing order:

  • Members must contact the Credit Union to arrange for a new standing order mandate to be produced. This is then completed by the member and returned to the Credit Union. We will then forward this to your nominated bank. Members should not change monthly standing order contributions directly with their bank.

If you have taken a loan from the Credit Union then your monthly payments are calculated to ensure loan payments and saving contributions satisfy the legal obligations of the loan agreement and as such are fixed for the term of the loan agreed. Therefore, you are not able to reduce your monthly contributions while a loan is outstanding. You are able to increase your monthly contributions during this period and the extra funds will go directly into your savings account.

Can I pay extra money into my account on top of my monthly contributions?

Yes, members are able to pay extra money into their savings account if they wish to do so. However, any extra payments made will not be taken into account when calculating the amount of loan a member is eligible to apply for. The loan amount calculation is based on the consistent and regular contributions a member makes to their account.

I already have a loan with WCU, can I get another?

Members can apply for a top-up loan on their account when the share balance is equal to or more than their loan balance. The amount depends on the figures involved, account status and the method of payment, but as a guide we usually work out top-up loan amounts as: Savings balance x2 minus loan balance.

 

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