Loans

Our interest rates for small loans are competitive.

Loans may be taken out for any productive or provident purpose. This includes purchase of household goods, clothes, cars, Christmas presents, holidays, etc. or the repayment of high interest credit or store card debt. Annual items such as car tax or insurance are permissible but we would expect them to be repaid by the time they are again due.

Unsecured loans are repayable within a 5 year period and secured loans within a 10 year period.

The amount a member can borrow is related to their ability to make the required repayments. Evidence of income and expenditure will be requested to help the credit committee to assess the loan request.

Members may not withdraw savings being used as security for a loan.

Loan applications must be made on a Loan Application Form. The Loan Officer and/or the Credit Committee of the Credit Union will consider this application. The Credit Committee has delegated powers for certain loans and will approve/reject or refer the application to the Board of Directors who meet monthly.

Please allow sufficient time for the loan application to be considered. In genuine emergency situations for someone in need an accelerated application may be possible. We undertake to give a decision on a loan application within 5 working days of the submission of all required information.

Once a loan application is approved a formal Loan Agreement will be prepared for the members signature. This agreement will detail the loan and repayment schedule.

The interest payable on a loan is set by law at a maximum of 2% per month on the amount of the loan outstanding at the time. However, Norfolk Credit Union have decided to maintain their interest rate at 1% per month. This translates to an APR of 12.67 %. In practical terms it means that a loan of £100 paid back in one year will cost £6.50 in interest making the total paid back £106.50.

The loan may be paid back early without any penalty or extra charges.

The credit union may recover any sums due from a member or their executors or administrators. The credit union has a lien on the shares of a member for any debt the member has or has guaranteed. See insurance section for details of loan insurance which may mitigate this on the death of a member.