Borrowing From Your Credit Union

The Credit Union will consider loan applications from members for any worthwhile purpose.

Applications for loans are made on a loan application form. A promissory note also needs to be completed. Loans can be applied for by calling into our office or by telephone request or by applying via your account login. Our staff and volunteers will give you any assistance required.

Loans will either be granted by the Loans Officer or will be considered at the weekly Credit Committee meetings.

Loan Calculator

To use, move the sliders to enter the amount you wish to borrow and payment period in months.

Loan Calculator2a
Total amount borrowed: £1200
Payback over 12 months
Monthly repayment: Total interest: Interest Rate:

PLEASE NOTE: The results of this loan payment calculator are for comparison purposes only. They will be a close approximation of actual loan repayments if available at the terms entered, from a financial institution. This is being provided for you to plan your next loan application.

Reason to Choose Moray Firth Credit Union

No Arrangement Fees

While other financial organisations charge fees for setting up loans, we don’t. Moray Firth Credit Union exists to provide a service to you, not to profit from you.

No Early Repayment Fees

Whilst other financial organisations charge you extra if you want to increase your payments and settle your loan early – we don’t. We know it’s in your best interest to pay your loan off quickly as you can as this reduces the amount of interest you pay.

Reducing Loan Balance

As you pay your loan off, the amount of interest you’re paying back also reduces. This makes your loan cheaper, even though on paper the APR rate may appear higher.

FAQs ?

Here our most asked questions but if you still have a question please don’t hesitate to get in touch with the team.

Depending on your circumstances we can offer loans up to £7,500 + your share balance. See below for more information on various circumstances which may affect the amount we can lead you.

DWP / Universal Credit Claimants

  • The maximum first-time loan to DWP borrowers will be £300.
  • The rate of interest charged will be 3% on the reducing balance at 42.6%APR.
  • The loan will only be available once the member has saved for six weeks.
  • DWP / UC claimants will be asked to sign a form so that the loan is registered with DWP/UC for repayment in the event of default.

First Time Borrowing

  • First-time borrowers, not DWP, will be allowed to borrow up to three times their savings.
  • The rate of interest will be determined by the bracket of lending rates.

Subsequent borrowers

  • Subsequent borrowers who have already paid off one loan, with no missed payments, will be allowed to borrow £1000+.
  • The rate of interest will be determined by the bracket of lending rates.

Top Up Loans

  • Top up loans will be allowed on an account after the minimum of 50% of the original loan has been paid off.
  • Top up loans will not be granted if there have been missed payments on the original loan with no satisfactory explanation of the reason why.
  • Top up loans will not be granted if the member has made no attempt to save during the period of their loan.
  • Only two top-up loans will be allowed in one year.

Borrowers of £5000+

  • Only regular members:
    • who have established a savings record and a good repayment record OR
    • members who pay into their account via payroll deduction OR
    • members who have 35%+ disposable income, will be eligible for a £5000 + loan.
  • The rate of interest will be determined by the bracket of lending rates.

Yes, whilst other financial organisations charge you extra if you want to increase your payments and settle your loan early – we don’t. We know it’s in your best interest to pay your loan off quickly as you can as this reduces the amount of interest you pay.

Interest Rates

From 2nd November 2020 , for all new loans

Loan Table* Monthly interest is based on a reducing balance. Interest is calculated daily. There are no early repayment fees.

All loan applications will be assessed on a member’s need and ability to repay the loan.

All loans will be granted at the discretion of the Credit Committee

You need to be a member of Moray Firth Credit Union and have been saving for a minimum of  6 weeks.

In deciding whether or not to give out a loan the loan officer or credit committee will take into account the member’s record of savings and loan repayments as well as the ability to repay. For first time loans, evidence of income and expenditure will be required. This may also be asked for in the case of top up loans. Once the loan is granted the member will be asked to complete a promissory form which is a legally binding document being a promise to repay the loan and to commit to regular repayments.

Remember only members may borrow from the Credit Union

The member will be advised on the best repayment plan to meet their own circumstances.

Should a member experience difficulties in meeting repayment commitments they should immediately contact the Credit Union office and explain their difficulties and every effort will be made to assist the member.

Loan Protection Insurance is the insurance cover that the Credit Union provides on the loans of its borrowing members. Should an insured borrower die the insurance cover provides that the loan is repaid in full