Fairhill & District Credit Union we believe that the way we lend is built around our member’s ability to repay.
In deciding whether or not to grant the loan the loan officer or credit committee will take into account the members' record of savings and loan repayments, as well as ability to repay. Once the loan is granted the member will be asked to complete a Credit Agreement.
When carried out responsibly, borrowing money can even help your credit rating.
The Interest Rate on our Loans is set at a maximum of 1% per month on a reducing balance. Interest is recalculated after each repayment and charged on the remaining balance of the loan.
The Loan's Committee have implemented the following rates effective 1sth March 2022.
| Loan | Rate |
|---|---|
| £100-£7499 | 12.68% |
| £7,500-£14,999 | 9.9% |
| £15,000 and above | 6% |
| Secured loans by shares | 7.9% |
| Emergency over the counter loans to run long aside your loan (classed as a second loan) up to £1000 in total. Maximum of 2/yr. | 12.68% |
Please note: Customers need to top up a minimum of £500 to avail of these new rates.
While it is recommended that members save consistently for a minimum of 13 weeks or 3 months before applying for a loan, loans can be granted before this time period at the discretion of the loans committee.
A loan application can be filled in at our office, which is then passed on to the Credit Unions Loans Department for assessment. Assessment may take into account factors such as:
Members applying for a loan will also be expected to sign a credit agreement, a legally binding contract in which the member agrees to pay the loan and all interest charged.
Shares used as security against a loan cannot be withdrawn until the loan amount is less than the members’ shares. At this point in time only the difference between the members shares and loan can be withdrawn
All members are required to save at least £1 per week whilst their loan is active
On approval of a member’s loan application, the loan amount is issued either by cheque or bank transfer into the member's bank account.
Repayments can be made:
We would urge any member with a loan who finds themselves in financial difficulties to make an appointment to come and tell us about your situation, we may be able to help. Failure to repay your loan will result in all actions available to the Credit Union, including Debt Recovery Agencies, Court Action and referral to Credit Reference Companies which may affect your credit rating.
