Tel: 03030300010 Email: onlinebanking@sycu.co.uk

24 June 2017
Loans

Loan Applications

The Credit Union will consider loan applications from members for any worthwhile purpose. Each application is treated in the utmost confidence and will be considered on its own merits. It is credit union policy to meet the borrowing requirements of as many members as possible, depending on the available funds.

Applications for loans are made on a standard loan application form. Loans can be applied for by calling to our office and we are currently developing our service to apply via website. Our staff will give you any assistance required. Loans will then be considered by a Loan Officer, or will go to the bi-monthly Credit Committee meeting if a Loan Officer feels they are unable to make a decision.

What you need when applying for a loan

In deciding whether or not to grant the loan the loan officer or credit committee will take into account the member's record of savings and loan repayments, as well as ability to afford repayments, in which case all proof of income will need to be presented with the loan application form. Once the loan is granted the member will be asked to complete a loan agreement form, which is a legally binding document being a promise to repay the loan, and to commit to regular repayments. All members will be provided a copy of the loan agreement form.

Remember - only members are eligible to receive loans from your credit union.

Planning and managing repayments

The member will be advised on the best repayment plan to meet their own circumstances. Members are generally advised to repay a loan in as short a time as possible. 5 years is currently the maximum loan term. Should a member experience difficulties in meeting repayment commitments, they should immediately explain the situation to the credit union, which will treat the matter sympathetically and in total confidence. Depending on circumstances, the loan will be renegotiated if possible.

Interest on credit union loans

By law credit unions cannot charge any more than 3% per month on the reducing balance of a loan. This represents an interest rate of 42.58% APR (Annual Percentage Rate). The Credit Union is currently offering competitive rates. View our loan calculator to see how reasonable a credit union loan could be. We also have regular promotional rates of interest. Since the interest is charged only on the outstanding balance of the loan, you will pay even less if you repay in a shorter time than planned.

Find Us here:
Twitter Facebook
South Yorkshire Credit Union Tel: 03030300010 Email: onlinebanking@sycu.co.uk Web: http://www.sycu.co.uk
South Yorkshire Credit Union Limited is authorized by the Prudential Regulation Authority, and regulated by the Financial Conduct Authority and Prudential Regulation Authority. • Financial Conduct Authority and Prudential Regulation Authority Ref No 213840. • Industrial and Provident Society Regulation No 675C • Registered Office: 70 Market Street, Barnsley, South Yorkshire, S70 1SN