Moray Firth Credit Union Ltd will make available lending products to meet members’ needs as required by and in accordance with the Credit Union Act 1979.
The Credit Union will base its lending decisions on an applicant’s ability to repay the loan (capacity) and the likelihood of the credit union receiving payment on time and in full (character). The Credit Union has an obligation to protect members’ savings when granting a loan and this dual responsibility is central to this Credit Union’s philosophy of co-operation between members. The Credit Union reserves the right to conduct credit reference checks before a decision is made on some loan applications.
Credit Union Loans
Moray Firth Credit Union Ltd loans start from £50. To help the Credit Committee reach a decision on lending money, they will need to see evidence of income such as:
- three recent and consecutive bank statements – paper copies
- three recent and consecutive wage slips – paper copies
- the income and expenditure of your household
- any award letters from DWP/PIP or any other evidence of income
These documents should be included with the loan application or at least three days prior to interview.
To apply for a loan you must:
- Be aged between 18 and 80 and be an existing member.
- Not be in a current bankruptcy, DAS or Protected Trust Deed debt scheme.
- Have saved money into your account for six weeks.
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.
IMPORTANT NOTICE Moray Firth Credit Union Ltd reserves the right to suggest a reduced amount to borrowers from their original request. The Credit Committee will give the reason why the decision was made. |
Amended by Moray Firth Credit Union Ltd Board of Directors – September 2020
Interest Rates
From 2nd November 2020 , for all new loans
Amount | Monthly Interest * | APR % |
Up to £1000 | 3% | 42.6% |
£1001 to £4000 | 2% | 26.8% |
Beyond £4000 | 1.2% | 15.39% |
Secure Loans | 0.5% |
6.17% |
DEBT CONSOLIDATION LOANS ARE AT THE CREDIT UNION'S DISCRETION |
* 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