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Tel: 020 7561 1786 (Multilingual advisors available)  •  Fax: 020 7272 8192  •  Email: info@credit-union.coop

Mon 24-Jul-2017
Apply For A Loan Loans


Applying for a Loan

Check out the Loan Calculator for a quote.

Existing members can APPLY ONLINE







Take a look at the Guidance Notes before applying for a loan.


Our Loan Products

We offer loans of up to £15,000 above savings starting from just 5%apr, or small loans to tide you over until payday. You can apply for a loan straight away, but we reward you with even lower interest rates if you have saved with us first. To apply for a low cost loan you must live OR work or study in Barnet, Camden, City of London, Hackney, Haringey or Islington, OR work for one of our employer partners in other parts of the UK OR be a member of Unite in Greater London, OR a member of The Co-operative Group in the London/SE Region. If your low cost loan is approved and you are not already a member you must open your account with a minimum £20 or £50 deposit to your savings account. The granting of the loan is simply based upon your ability to afford repayments and your savings record. Unlike other lenders we will not judge you if you have had financial problems nor will we encourage you to borrow more than you need or can afford. You do not have to come into the office, simply register for online access then you can submit your low cost loan application and approve the loan agreement online and we will transfer the funds direct to your bank account. Below you will find details of the different types of loans we offer to meet your needs.

Low Cost Saver Loans and Instant Saver Loans

Most members use the low cost ‘Saver Loan’ as a way of moving away from borrowing and into the savings habit. You can apply for a low cost Instant Saver Loan at any time and once your loan is granted you must join with an opening savings deposit of £50. If you choose to save at least £27 pcm for twelve months you will be rewarded for saving by having an even lower interest rate ‘Saver Loan’. Interest on ‘Saver Loans’ is charged at a fixed rate of 12.7% apr. The interest rate on the ‘Instant Saver Loan’ is charged at the slightly higher rate of 19.7% apr. If you have experienced problems with debt previously that is not necessarily a barrier to getting a loan from us. Please see our ‘Credit Builder Loan’ below which is designed to help people rebuild credit rating with the credit reference agencies. Our unique low cost ‘Saver Loan’ sees part of your regular repayments allocated to your savings account which means that as you repay your loan your savings continue to grow. You cannot withdraw your savings until the loan is repaid and this means that you gradually reduce and ultimately eliminate your need to borrow. The credit union low cost ‘Saver Loan’ is a very low cost way of borrowing. For example £1,000 repaid monthly over a year :

Loan Sum

12 Monthly Repayments of:*

Total Interest Paid

Value of Savings @ End of Period*

£1,000

£89

£67

£324

* Borrowers must continue to save not less than £27pcm throughout the repayment term of the loan.

The maximum value for a first loan is normally £5,000 above the value of your savings, but this rises to a maximum of £15,000 above savings over time, based on your savings level and borrowing record.

To apply for this loan you can use the online form from Members Secure Area once you have registered for online access, alternatively you can click HERE to reach the forms page or contact the office for an application pack.


Home Owner Loans - £7,500 to £15,000 loans from just 2.9% APR and max 9.9% APR

We know that owning your own home is not always plain sailing. There are times when you need to spend large sums on maintenance, home improvements or even special occasions like weddings. We are able to offer larger value loans at very competitive rates.

1. General Terms
a) We will offer loans at 0.1% less than that formally offered by any High Street Bank, for any qualifying member able to provide an offer letter from their bank for the equivalent sum, together with their most recent mortgage statement.
b) Our minimum interest rate is 2.9%APR and our maximum rate is 9.9%APR.
c) The default rate for Homeowner loans is 9.9%APR.
d) Interest rates will remain fixed throughout the term of the loan.
e) You can choose your own loan repayment terms but with a maximum 5 year repayment period. Please see our loan calculator on the website.
f) As with all of our loans you can, by arrangement, vary payments if your circumstances change, and repay early without penalty.

2. Eligibility to Apply For a Home Owner Loan
a) Anyone qualifying for membership who opens the account with a minimum share deposit of £50.
b) Applicants must provide their most recent mortgage statement or other proof of ownership if there is no mortgage.
c) You must agree to save a minimum £40pcm during the term of the loan and these savings remain non-withdrawable as part security on the loan.

To apply for this loan you can use the online form from Members Secure Area once you have registered for online access, alternatively you can click HERE to reach the forms page or contact the office for an application pack.

Credit Builder Loans

This loan is ideal for those with a poor credit history and who want to re-establish a good borrowing record. The 'Credit Builder' loan is purpose designed to help people who have got a less than perfect credit history to help rebuild their credit rating. We share data with the credit ratings industry, so as you repay our low cost loan you are rebuilding your credit rating. You can apply without joining the credit union, but you must open a credit union account with a minimum £20 deposit if your application is successful. The maximum loan is £1,000 and there is no minimum. Loan repayment are flexible to meet your needs, but must not be in excess of a five year repayment period. You can set the payments at a level that you know you can afford. Like with the 'Saver Loan' product you will be required to pay a minimum of £27pcm or £5pw into your savings account whilst you repay the loan and savings can't be withdrawn until the loan is repaid. This means you have a lump sum at the end of the loan as well as strengthening your credit rating. The interest rate is 3% per month or 42.6% apr, a very competitive rate for those with a poor credit history. After 9 months of regular payment you will become eligible for our Saver Loan at just 12.7%apr.

Flexi Loans

Any member of the credit union can apply for a low cost Flexi Loan and must make a payment of not less than £20 to their credit union savings account before funds are released. The Flexi Loan is a slightly higher interest rate of 26.8% apr but the monthly or weekly repayments may be lower as there is no minimum savings requirement. The average value of the low cost Flexi Loans is £300, and repaid in 12 monthly instalments costs only £39 in total interest. Members’ are encouraged to save whilst repaying the low cost Flexi Loan and any savings may be withdrawn upon demand as long as the minimum £1 share is maintained. If you choose to save as you repay the loan at a minimum £27 pcm or £5pw you will become eligible to apply for an even cheaper Saver Loan.

To apply for this loan you can use the online form from Members Secure Area once you have registered for online access, alternatively you can click HERE to reach the forms page or contact the office for an application pack.

Security Loans

We want to encourage members to build up their savings to prevent them having to borrow in future. To encourage members not to withdraw their savings we offer an alternative ‘Security Loan’ at just 5% apr. This allows members to keep payments at the same level and keep their savings for a rainy day.

To apply for this loan you can use the online form from Members Secure Area once you have registered for online access, alternatively you can click HERE to reach the forms page or contact the office for an application pack.

Cost Of Borrowing

View our Loan Calculator to see how little our loans cost. We have no set up fees, early repayment penalties and only charge interest on the reducing balance.

Data Protection & Credit Reference Agencies

CLICK HERE for a guide on how we may share your personal data with credit reference agencies and fraud prevention agencies.

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  • London Capital Credit Union
  • Tel: 020 7561 1786 (Multilingual advisors available)  • 
  • Fax: 020 7272 8192  • 
  • Email: info@credit-union.coop
  • Web: http://www.credit-union.coop
Authorised by the Prudential Regulation Authority & regulated by the Financial Conduct Authority & the Prudential Regulation Authority. Firm Ref. No. 214094