The easy way to borrow money
How a credit union can provide a loan
The money that is saved by the members of a credit union is in turn lent out to other members. A credit union will take a members savings record with the credit union and their ability to pay as its main information when deciding whether or not to grant a loan. You dont need to have an established credit record to borrow from a credit union. First Rate Credit Union reserves the right to carry out further financial checks where necessary.
Obtaining a loan from First Rate
Simply complete a loan application form and return it to the credit union office. Please ensure the form is thoroughly completed, failure to do so will result in the form being returned.
- Where else could you borrow £2,000 over a year for a total interest payment of just £104.40, (Representative APR 9.9%) and interest is only charged on the outstanding balance, not on the full amount of the loan?
- All loans are life insured at no cost to the borrower.
- There is no arrangement, set up or hidden fees and no charges if you want to pay the loan off early.
- Loans over £7,501 at the cheaper interest rate of 7.9% APR.
Paying off the loan
For employees, you pay back the loan straight out of your wages by Payroll Deduction. The forms are available on the internet or direct from the office. Retired employees and immediate family pay the loan back by using a Bank Standing Order Mandate form,
which is also available from the same sources.
The debt will die with the debtor. The removal of the next of kins' burden of an outstanding debt is an additional and free benefit of First Rate Credit Union membership.