Taking Out A Loan
Loans are the lifeblood of any credit union. The income generated from providing loans to members is essential for providing a good surplus at the end of each financial year.
Why is a credit union loan better?
A credit union loan has some very special features:
• There are no hidden fees or transaction charges and you are charged fair and reasonable interest rates.
• Repayment terms can be arranged to suit your particular circumstances.
• You can repay the loan earlier with no penalty and additional lump sum repayments are accepted with no penalty and there is the flexibility to make larger repayments than agreed with no penalty.
How much does a credit union loan cost?
Interest is only charged on the reducing balance of a loan. For example, if you borrow £1,000 for a year and maintain your regularly monthly payments, the amount of interest you will pay is less than £70. The interest rate, by law, will be no more than 1% per month, which equates to an APR of 12.68%.
What about repayments?
Because credit unions represent the members who save and borrow with them, you will find the credit union is very flexible. Staff of the credit union can help you choose a repayment plan which suits you. If your circumstances change and you want to alter your repayment plan help is always there for you. It is also worth remembering that you can repay your loan in full, at any time, without any penalty or additional charges.
How do I apply for a loan?
Credit union members can apply for a credit union loan. A Loan Application Form must be filled in for consideration by the Loans Committee. So, whatever you are borrowing for – a car, home improvements, a special occasion, holiday, school or college fees – MTCU will give you a fair deal.
Read more about our loan regulations here.