Loans
We offer loans of up to £30,000 above savings starting from just 2.9% apr, or small loans to tide you over until payday. You can apply for a loan straight away and if you work for one of the 100+ Salary Saving Scheme employer partners you get lower interest rates.
You will need to have made the first payment of not less than £20 before your loan application can be paid to you.
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.
Loans
We offer loans of up to £30,000 above savings starting from just 2.9% apr, or small loans to tide you over until payday. You can apply for a loan straight away and if you work for one of the 100+ Salary Saving Scheme employer partners you get lower interest rates.
You will need to have made the first payment of not less than £20 before your loan application can be paid to you.
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.
CHECK THE LOAN IS AFFORDABLE
ALREADY A MEMBER?
LOGIN here to apply for this loan
NOT YET A MEMBER?
REGISTER here to join the credit union and apply for this loan
PREPARING FOR YOUR LOAN APPLICATION & GUIDANCE NOTES
Preparing For Your Loan Application
You will need to have made your first deposit of not less than £20 before any loan approve loan application can be paid to you..
To make our lending decisions we use manual credit and affordability checks, rather than just your credit score. To do this, you’ll be asked to provide details of your employment and finances when you apply. We need these before we can make a decision on your loan. Priority is given to members who have saved a little before applying for a loan.
You should have the following ready when you apply:
- A copy of your most recent pay slip (or benefits letter)
- Your National Insurance Number
- Details of your online banking service to allow us temporary Open Banking ‘view only’ access to all your current and/or savings accounts.
(if you do not have online banking we will ask you to upload the 2 months most recent bank statements as PDF).
OUR LOAN PRODUCTS
Our loan products are designed to help you to save while you borrow
To apply for a low cost loan you must first join as a member. When your low cost loan is approved and, if you are not already a member, you must open your account with a minimum of £20 or £50 deposit to your savings account
Support with Loan Payments
If you have a loan from us and need a little help managing repayments then please call us on 0203 763 8397 to speak with one of our friendly Loan Support Officers who will find a way to help
The granting of the loan is based upon evidence of affordability. 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. To increase your chances of the loan being approved, read these GUIDANCE NOTES and, if you can, set up your salary deduction, direct debit or child benefit savings payment before you apply for a loan.
You do not have to visit our office. Simply join and/or register for online access through the members secure area of the website, or download the ‘London Capital Credit Union’ app for mobile devices then you can submit your loan application online, approve the loan agreement online and we can then transfer the funds direct to your bank account.
Low Cost Saver Loans
You can apply for a low cost ‘Saver Loan’ at any but give priority to those who have saved with us first. If you are a new member then once your loan is granted you will required to deposit £20 to your saving account. Interest on most ‘Saver Loans’ is charged at a fixed typical rate of 12.7% apr. Rates may vary dependent on our lending risk criteria, such as repayment method, previous borrowing record and credit history.
Most members use the low cost ‘Saver Loan’ as a way of moving away from borrowing and into the savings habit. The value for our Saver Loans is currently £1401 – £30,000, above the value of your savings. Typical interest rate for this product is 12.7%apr but rates may vary based on payment method, savings record and credit history.
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 can access your savings once the loan is repaid. This Saver Loan principle 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 £1,500 repaid monthly over a year at our typical rate of 12.7% apr the total interest paid for the year would be £96
Once you have joined you can apply for loans using online access through the website or by using the London Capital Credit Union app for mobile devices.
Saver Loan
KEY FACTS- £1,401 to £30,000.
- you will have additional savings when you have repaid the loan
Home Owner Loans
£7,000 to £30,000 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. We will offer loans at 0.1% less than that formally offered by any High Street Bank.
To qualify for this price beating offer the applicant must provide a formal offer letter from their bank for the equivalent sum, together with their most recent mortgage statement. Our minimum interest rate is 2.9%apr and our maximum rate is 9.9%apr and interest rates will remain fixed throughout the term of the loan.
You can choose your own loan repayment terms within a maximum 5 year repayment period. Please see our loan calculator on the website. As with all of our loans you can, by arrangement, vary payments if your circumstances change, and repay early without penalty.
Eligibility to apply for a ‘Home Owner Loan’
- Anyone qualifying for membership who opens the account with a minimum share deposit of £50.
- Applicants must provide their most recent mortgage statement or other proof of ownership if there is no mortgage.
- 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.
Home Owner Loan
KEY FACTS- £7,000 to £30,000.
- you will have additional savings when you have repaid the loan
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 £500, and repaid in 12 monthly instalments costs only £47 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 £30 pcm or £7 pw you will become eligible to apply for an even cheaper Saver Loan.
Flexi Loan
KEY FACTS- £100 – £1400.
- you will have additional savings when you have repaid the loan
Security Loans
Up to £30,000 at only 4.9%APR
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 4.9% apr. This allows members to keep payments at the same level and keep their savings for a rainy day.
Security Loan
KEY FACTS- Up to £30,000.
- you will have additional savings when you have repaid the loan
Loan App Guidance Notes June 2019 v2
London Capital Credit Union Ltd
Increasing the likelihood of getting your loan application approved.
Every loan application is considered by credit union members serving on the ‘Loans Panel’. It’s their role to assess the willingness/ability to repay the loan. Remember, the money we lend is the savings of many other members.
Getting Your Loan Approved
Here are four top tips to increase the likelihood of your loan being approved. Remember, unless it is a real emergency we will not issue a loan within 6 months of your previous application.
- Tell us about your credit history.
We sometimes conduct a credit check with Experian. Having a poor credit history does not mean we decline the loan, but the member has to be ‘up-front’ about it.
To find out how to check your credit report visit our website Money Guidance page here> https://credit-union.coop/content.asp?section=257 If there is inaccurate information held there you can and should challenge and correct it. Be sure to tell us about any issues you have had with meeting payments in the past, it will help your application.
- If you owe any money elsewhere, make sure you declare all your debts
A vital part of what the credit union does is to encourage members to take control of their finances. A crucial part of taking control is knowing how much you owe to whom, and how much the payments are. A member having lots of debt doesn’t mean we decline the loan automatically, but the member has to be ‘up-front’ about it and show that they have thought about working with us to escape from that problem debt. It is worth making a full list of who you owe money to. - Try to evidence and explain that the repayments are affordable.
As a co-operative we’re trying to help our members out of debt, so do not want to escalate a member’s debts to boost our profits. You should try to explain how the additional borrowing is affordable: for instance, you are clearing an existing high interest debt which will reduce payments and increase your income. Feel free to add a note with the application. As a general principle, do not apply for more than you need.
- It pays to have saved with us before applying for a loan.
You do not have to save before applying for a loan but the interest rates may be even lower if you do. Sometimes when demand for loans is high it’s only fair to give priority to those members who have been saving with us before applying for a loan. As a general rule, establishing any sort of savings pattern with us reduces the loan interest rate and greatly increases the chances of your loan application being successful. It is not how much you save but the regular pattern that counts.
Top Tips
- If there is additional information to support your loan application when you apply then feel free to include an explanatory note.
- Be as specific as possible about the purpose of the loan.
- Remember to list all debts, including any that have been recently cleared.
- The longer you save with us and/or the less you ask to borrow the greater the chance that your application will be successful.
- The less frequently you borrow the greater your chance of success.
