At different times in our lives we could all use a little extra cash to do the things we need or want to do: buying a new car, going on holiday, consolidating other loans, or for a special occasion.

Basildon Credit Union Limited has the following Loans Services available, which offer competitive rates of interest to our members:

  • Personal Loan – borrow from £500 up to a maximum of £7,000 with fixed repayments and a clear end date
  • Acorn Loan – borrow from as little as £50 to a maximum of £500, up to a maximum repayment period of 12 months
  • Child Benefit Loan – borrow up to £500 over a 12 month period using Child Benefit contributions to repay the loan

Available repayment periods

You can apply for a loan term from 1 month to 60 months depending on the loan amount and purpose. Just remember that the maximum repayment period might be lower for certain loan purposes, see our Loan Services. Try to only borrow exactly what you need.

We offer loans to cover costs big and small and you can be specific about the amount you need, down to the pound.

How interest is charged

The interest rate is fixed for the life of the loan. When arranging your loan, we work out the interest you will pay over the whole length of your loan (the term) and this is added to your loan amount.

The interest rate (the Annual Percentage Rate or APR) you pay is dependent on the amount you borrow – the more you borrow, the better rate of interest will be applied. The loan amount and the interest amount are added together and then divided equally by the number of payments you wish to make.

All of our current loans rates are shown below. Please note savings that are held as part of the Christmas Club cannot be used to as collateral to obtain a loan.

Amount of Loan %APR Term (Months) Monthly Repayment Total to Repay
£500.00 42.6% 12 £51.89 £622.67
£1,000.00           35.9% 12 £100.41 £1,204.90
£2,000.00       17.9% 18 £127.52 £2,295.29
£3,000.00        17.9% 24 £149.63 £3,591.05
£4,000.00 12.9% 36 £134.58 £4,844.84
£5,000.00 12.9% 48 £133.89 £6,426.38
£6,000.00 12.9% 60 £136.21 £8,172.30
£7000,00 12.9% 60 £158.91 £9,534.46

All Loan Applications are subject to our Loans Policy and Terms and Conditions

Personal Loans

You can borrow between £500 and £7,000 over a maximum period of 5 years (60 months), which can be used for any purpose. We do not charge a fee to arrange our loans and there are no early settlement fee’s, if you decide to pay your loan off early.

When considering your loan, we take into account how long you have saved with us, how much in savings you have with us, and your repayment history if you have borrowed from us previously. As an ethical lender, we carry out an affordability check on all loan applications, to ensure that you are able to meet the repayments you are required to meet, as part of the loan agreement.

Decisions on your loan application usually take between 7 – 10 days, sometimes much sooner, and all loan applications are considered by our Credit Committee. Each application is taken on its own merit, as they are decided on by people and not a computer.

If you change your mind after receiving your loan from us you have a 14 day cooling off period. You will need to tell us within the 14 days and follow this up in writing. There is no penalty or charge for cancellation, however the loan must be repaid in full, together with any unpaid accrued interest from the date it was issued up until the date it is cancelled.

How soon can I apply for a loan?

You can make an application for a loan once you have been a member for a minimum of three months, except for new members applying for an Acorn loan.

Whilst any of our loan products are current, you will be able to make withdrawals from your savings account, but we will always hold a retainer of 10% (for loans under £3,000) or 20% (for loans over £3,000) of your outstanding loan balance.

For example, if you have £650 remaining on your loan, and hold savings of £200, we will automatically retain £65 (10%) which means you will only be able to withdraw up to £135, not the full £200. As the loan balance decreases, so will the amount that we retain.

General

• A first loan cannot exceed three times the amount of share capital.

• Any subsequent loan must not exceed 10 times the amount of share capital (savings) up to a maximum of £7,000.

• However, if you have established a regular savings pattern of at least 18 months, but not had a loan previously, consideration will be given to loans of up to 10 times the amount of share capital (savings), up to the maximum amount of £7,000.

Top Ups

Sometimes our circumstances can literally change overnight, or sometimes we have an emergency, such as a burst pipe or broken boiler that needs replacing. Top Ups are calculated on a sliding scale, based upon the number of tops ups you have after taking out your original loan.

Number of top ups % of original loan repaid

  • 1 top-up: 50%
  • 2 top-ups: 55%
  • 3 top-ups: 60%
  • 4 top-ups: 65%
  • 5 top-ups: 70%
  • 6 top-ups: 75%
  • 7 top-ups: 80% and every additional top up

You can increase your borrowing and reschedule your payments, which will help you to deal with that unexpected emergency. Your first loan with us must be repaid in full and is not eligible for a Top Up.

Eligibility Criteria

To apply for a loan, you must have been a Basildon Credit Union Member for a minimum of 3 months, with the exception of new members applying for an Acorn loan from 21st July 2022. You must be aged over 18, and first-time borrowers must be able to demonstrate an income (wages, salary, pension). You must also be a resident in the UK.

An affordability check will be undertaken when taking out a loan and you will be asked to complete a form, which sets out your financial commitments. We strive to provide the support that you need, when you need it, but unfortunately, we are unable to arrange a loan for you if you have an Involuntary Agreement (IVA) or are registered as bankrupt.

What happens if you can’t afford your loan repayments

Any loans taken out with us form a legally binding agreement between you and Basildon Credit Union Limited.

If, having taken out a loan, you are not able to make a repayment when it is due, or if your account falls into arrears, it is important that you contact our office and let us know, as soon as possible. This can be noted and an arrangement to spread the missed payment/s out over the remaining term of your loan can be made.

If you receive a letter from us about arrears, please don’t ignore it. Contact us, explain your situation and we will be happy to work with you to try and resolve the issue and make a plan to get you back on track.

When our customers don’t contact us about their arrears, miss their payments and don’t make any voluntary arrangement with us, we have no option but to refer the matter to our external collection agents. Once that happens, the debt is taken out of our hands and our relationship with you comes to an end. You will no longer be able to deal directly with Basildon Credit Union Limited, or able to make a voluntary arrangement in relation to any unpaid loans or missed payments.

The external collection agent is then able to add their own fees and charges as necessary to recover the debt. These can be in respect of the different stages that the agent goes through to recover the debt, such as the appointment of a Bailiff, the fee for each Bailiff visit, and Court Fees. Goods to the value of the debt can also be removed by a Bailiff from your home.

In a worst case scenario, a County Court Judgement (CCJ) may be issued against you if you defaulted on the loan, which will affect your future credit rating and may prevent you from further borrowing. It may also impact on your ability to secure larger borrowing, such as a mortgage.

Loans Policy

Loans Terms & Conditions