Credit Union Loans

To find your nearest Credit Union simply click on the link at the bottom of the page. Before you do so please read some informations on Credit Unions which you should find useful.

Credit unions are run on a ‘not for profit’ basis and offer low-interest loans, savings and bank accounts to their members.

The credit union holds members’ money in savings and current accounts and makes loans to other members who need to borrow money at an affordable rate.

They are community based organisations run by and for their members and are set up between people with a common association – such as living in the same area, or working for the same employer.

Most credit unions will charge you an average of 1% interest a month. The most they can charge is capped by law in England, Scotland and Wales at 3% a month or 42.8% a year APR. For Northern Ireland the rates are capped at 2% a month or 26.8% APR. There are no hidden charges or penalties if you repay the loan early. Credit unions also include free life insurance at no extra cost.

If you are looking for an unsecured loan you will find borrowing terms of up to five years. For a secured loan this can be up to 10 years.

Credit unions try to make sure members don’t take out loans they cannot afford to pay back, so if you apply for one of these you should expect to have your income assessed and you will be encouraged to save regularly.

They are regulated by the Financial Conduct Authority.

An interesting fact is that currently, less than 2% of the population (and 6% of regular churchgoers) are members of credit unions. The sector is growing fast, but is still very small by comparison with some other countries - 30% in Australia, 46% in the US, 43% in Canada, and 75% in Ireland.

Credit Unions have the ability to play an important part in people’s lives. Therefore FairMoney strongly believes that the more people that know about Credit Unions will result in more people being helped by them.

To find your nearest local Credit Union simply click on the "Find Your Credit Union" link below.

FIND YOUR CREDIT UNION

Warning: Late repayment can cause you serious money problems. For help, go to www.moneyadviceservice.org.uk